Hotel franchises
- Holiday Inn You may be interested to learn that Holiday Inn – the third biggest hotel chain in the UK – and its offshoot brand, Holiday Inn Express, are operated under franchise agreements. They’re part of the InterContinental Hotels Group (IHG), which manages 16 different hotel brands. ...
- Travelodge If you live in the UK, you’ll almost definitely have heard of Travelodge. ...
- Marriott ...
- Best Western ...
What are the top 10 hotel and motel franchises?
Top 10 Hotel & Motel Franchises 1 Marriott International, Inc. 2 InterContinental Hotels 3 Wyndham Hotel Group 4 Choice Hotels 5 Hilton Hotels 6 Holiday Inn and Holiday Inn Express 7 Red Roof Inn 8 Motel 6 9 Baymont by Wyndham 10 Red Lion Hotels
What is the difference between a hotel group and a franchise?
In this case, the Hotel Group (ex: AccorHotels) is the franchisor, and the hotel owner (ex: an individual) is the franchisee. They sign a Franchise Agreement for a specific hotel brand (ex: ibis).
Who is the owner of a hotel franchise agreement?
With AccorHotels, Franchise Agreements are very common for economy and mid-scale brands. In this case, the Hotel Group (ex: AccorHotels) is the manager, and the hotel owner (ex: a financial company) is the managed owner. They sign a Management Agreement for a specific hotel brand (ex: Sofitel).
How big is the hotel franchise industry?
The hotel franchise industry has grown significantly in the last decade. In 2010, about 70% of branded hotels were franchise operations, but by 2019 that figure had jumped to about 80%, according to research by JLL. 1 Most brands are recognizable names. Travelodge, Motel 6, Super 8 and Red Roof Inn may come to mind.
How Do You Choose Hotel Franchise Opportunities?
As an aspiring business owner, start by reading how a franchise works and the pros and cons of franchising. Research individual hotel franchises in...
What Factors Should You Consider for a Hotel Franchise?
Consider the following special features which are specifically relevant to motel or hotel franchises: Strong Financials – Look for a hotel group wi...
How Has Covid-19 Affected Hotel Franchises?
The COVID-19 pandemic of 2020 hit the hospitality industry hard as people curtailed travel and conferences. However, downturns are great times to s...
What Factors Should You Consider for a Hotel Franchise?
Consider the following special features which are specifically relevant to motel or hotel franchises:
How to be a hotel owner?
Aspiring hotel owners should carefully assess the future. Try to gauge when conditions are turning around and point toward an upswing. A return to normal presents opportunities to jump on pent-up demand by travel lovers, business travelers and conference goers. In light of the pandemic and resulting economic conditions, it’s more important than ever to make wise choices: 1 Identify the best-performing business model. Economy and extended-stay hotels seemed to have weathered the impact better, according to a mid-2020 survey by JLL. Urban hotels are struggling the most, according to a report by the American Hotel and Lodging Association. 2 2 Evaluate financial support. Find franchisors willing to offer discounts or go the extra mile to address temporary financial pressures. Were they willing to allow franchisees to temporarily relax brand standards such as cutting back on amenities or switching to carryout food versus sit-down restaurants? What other aid did the franchising team give? 3 Anticipate trends. Recovery depends on the willingness of guests to travel, and why they travel, says Daniel Fenton, Director of Global Tourism and Destination Development Services, Hotels & Hospitality Group, JLL. “The first round of leisure travelers will be inclined to drive rather than fly. After that, individual business travel will start to grow, followed by group business travel. It will take longer for group leisure travel.” 3
How many hotels does Wyndham have?
Wyndham. Wyndham is a hotel brand with more than 9,000 hotels across more than 80 countries. The company offers an innovative tech platform to help franchisees and teams manage operations easily. They also offer marketing assistance, personalized support, and multiple hotel franchise models to choose from.
How many Marriott hotels are there?
Marriott International Inc. is a worldwide franchisor of hotels and lodging. It is also a premier name in the hotel business. There are more than 7,400 properties throughout 135 countries. And the loyalty program has more than 140 million members. The company takes an owner-centric approach to its franchise program. So they customize opportunities to each franchise. And it’s not just the Marriott brand. The Marriott Group offers more than 30 hotel franchise models, from the Ritz-Carlton to Courtyard.
What is economy hotel?
Economy hotels bring you basic accommodations at budget room rates. You get no-frills rooms and suites to accommodate families. Expect hotel rooms to be clean and comfortable but not luxurious. Also known as limited-service hotels or budget motels, they keep costs low by cutting back on services and keeping the properties smaller. For example, there may be no restaurant, or just a coffee shop or continental breakfast in the morning. Here are the best economy hotel franchises and motel franchises:
How long has Motel 6 been in business?
The franchise business has been in operation for more than 55 years and has one of the most active nationwide ad campaigns. Motel 6 currently has target markets available for development across the United States, along with select hotel franchises around the rest of the world.
What are the names of hotel franchises?
Travelodge, Motel 6, Super 8 and Red Roof Inn may come to mind. But did you know that hotel franchises also include premier names like Marriott, Hilton and Wyndham? Just imagine your future. As a franchisee, you could become the owner of a hotel with a sign emblazoned with the logo of one of the biggest hotel brands in the industry.
What are the benefits of franchises?
The traditional franchise model has many benefits. Brands dictate attributes of the property and operational standards, affording owners easier choices (Freed, 2013). Brand standards assure customers that they will receive the level of service and amenities they expect. Operational manuals minimize mistakes and help the hotel adhere to brand standards (Butler & Braun, 2014). Owners save on the costs associated with creating a brand, logos, touchpoints, and standards (Ricca, 2017) and benefit from economies of scale (Holverson & Revaz, 2006). Brands provide services that drive demand and contribute to improved financial performance, such as reservation systems, websites, marketing research and intelligence, marketing support, loyalty programs, access to Global Distribution System (GDS), and quality control (Butler & Braun, 2014; Dev, 2015; Holverson & Revaz, 2006; Kwortnik, 2011; Stone, 2018).
Why did Rushmore argue that hotel chains were consolidated?
Rushmore (2004) posited that the consolidation of hotel chains reduced benefits of affiliation because the hotel could be competing with other brands of the same chain in the local market. On the contrary, Stone (2018) suggested that industry consolidation could be positive as brands may gain massive market share and negotiation power that could translate to powerful financial results for hotel owners.
What are the disadvantages of franchise agreements?
The literature agreed that the second significant disadvantage of the franchise agreement is the duration of the contract, which could be ten to twenty years-long , and the cost of early termination is very high (Holverson & Revaz, 2006; Stone, 2018). The terms of franchise agreement do not protect hotel owners from the possibility of brand dilution or decline in value (Butler & Braun, 2014).
How many hotels are branded?
Independent boutique hotels have received much attention in recent years, but the industry remains increasingly branded. In the United States, 70% of hotels are branded, and the rest of the world is 45% branded (Stone, 2018). It is expected that brands will continue to expand, and hotel owners will look for economies of scale via access to global reservations systems, training programs, and marketing support (Stone, 2018).
What is franchise agreement?
With a franchise agreement, the hotel owner receives permission to use the brand name, trademarks, logos, as well as access to the brand's loyalty program, distribution channels, and central reservation system.
Why is access to loyalty important?
Stone (2018) stressed the importance of access to loyalty programs as its contribution to sales is significant. For example, in 2016, 50% of room nights for Marriott came from loyalty members; for Hilton, it was 56% (Stone, 2018). Most developers and lenders prefer to finance hotels that are attached to brands because it reduces the risk of generating demand for the hotel (Freed, 2013).
What is a microtel?
Microtel Inn & Suites by Wyndham attracts travelers looking for a simple and streamlined experience that still feels stylish and modern. Designed for peak efficiency at a reasonable price, Microtel offers kitchenettes, dual desks, and a modernized common area that invites guests to socialize and stay productive.
What is Candlewood Suites?
Candlewood Suites hotel franchise is a part of the InterContinental Hotels Group. The franchise is focused on comfort, space and value and has 142 hotel properties in the U.S.
What is a home2 suite?
Home2Suites by Hilton is an all-suite extended-stay hotel brand from Hilton Worldwide. Amenities include complimentary breakfast, laundry and fitness areas, WiFi access and a 24-hour business center.
How many properties does RLH have?
RLH Corporation comprises more than 1200 properties in the U.S., Canada, Mexico and South Korea, forging ahead as a leader in hospitality with our brands: Red Lion Hotels, Red Lion Inn & Suites, Hotel RL, Settle Inn and GuestHouse, 3 Palms Hotels and Resorts, America's Best Inns & Suites, Americas Best Value Inn, Canadas Best Value Inn, Country Hearth Inn & Suites, Jameson Inn, Lexington, Signature Inn and Value Inn Worldwide. Our company, which is grown publicly traded on the NYSE (RLH), has historic roots in the Pacific Northwest dating back more than 50 years.
What is a tryp?
TRYP by Wyndham is a unique, urban, lifestyle boutique brand with high-performing select-service margins and a global presence. Every TRYP embodies the local flavor, rhythm, and beat of cities around the world, offering guests a personal retreat at the heart of an amazing cosmopolitan experience.
What is the Indigo hotel?
In each location, the Hotel Indigo brand offers a superior guest experience that incorporates the neighborhood story of the community in which it resides, curating local experiences for its guest while guaranteeing guests a level of consistency offered by IHG standards.
When did Travelodge start?
The first one under the name Travelodge opened in 1940 , and this became the name of Scott's company in 1946. Today Travelodge by Wyndham is part of the Wyndham Hotels & Resorts group of hotel chains. #Travel Franchises. #Hotel Franchises.
How to choose?
So how does an owner choose between a franchise or management agreement? The decision can be made based on numerous factors, but in general, a franchise agreement is best for an owner who wants to have hands-on involvement in the daily operations of their hotel. This person may already be an experienced hotelier.
Why do hotel groups need hotel owners?
Hotel Groups need the hotel owners to expand their network footprint and to generate fees against the services provided , and on the other hand, hotel owners need Hotel Groups to select from renowned hotel brands and benefit from powerful distribution and loyalty systems, the latest technology capabilities and hospitality expert teams. ...
What is franchise fee?
A franchise fee, including the brand trademark, based on a percentage of the hotel’s turnover. Mandatory services fees, which usually cover marketing and sales fees, distribution and loyalty fees, IT fees, hotel quality control and brand compliance audits fees. The franchisor is required to provide all the brand standards and to deliver ...
Why do hotels need managers?
The manager is required to best optimize the operation of the hotel and to deliver the mandatory services. The better the hotel’s topline and bottom line are, the better the manager’s revenue is. With AccorHotels, Management Agreements are very common for upscale and luxury brands.
What is required of a franchisor?
The franchisor is required to provide all the brand standards and to deliver the mandatory services.
What is managed owner?
A managed owner may instead be someone who does not have the desire or experience to run the hotel themselves. Their expertise or business interest is more strongly linked to the real estate investment aspect of hotel ownership.
What is the principle of a management agreement?
The overall principle of a Management Agreement is that the manager operates the hotel for and on behalf of the managed owner, in compliance with the brand standards. A base fee and a brand trademark, corresponding to a percentage of the hotel’s turnover. An incentive fee, based on the hotel’s gross operating profit.
