Speaky Magazine
  • Home
  • About
  • Celebrity Gossip
    • Scandal
  • Lifestyle
    • Shopping
    • Fashion
    • Wedding
  • Tourism
    • Places
  • Trends
    • Opportunities
  • Renovation
    • Exterior Design
    • Interior Design
    • Garage
    • Gardening
  • High Tech
    • Devices
    • Digital Marketing 
    • Internet
  • Games/Sports
  • Vehicle
  • Well-being
    • Diet
    • Exercise
    • Fitness
    • Healthy Food
    • Natural Remedies
    • Spa
    • Yoga
  • Write for us
  • Privacy
  • Contact US
Home  /  Opportunities  /  Franchising In the Hotel Business

Franchising In the Hotel Business

Gabriel Montgomery June 27, 2018 Opportunities Leave a Comment
Franchising In the Hotel Business

The hotel business is one of the most difficult areas in the entire franchising industry. It is important that the owner of a well-known hotel brand can only become an entrepreneur who owns an already operating hotel, after rebranding which is launched into work on a franchising network. But not every hotel can enter the world hotel chain by franchising, because this requires the right conditions – the correct location of the hotel, the experience of the hotel manager and a number of rooms meeting certain standards.

According to statistics, in America, from a general hotel fund, about 70% of hotels work under well-known franchise brands. the situation is quite different, only 5-10% work under an international brand. This is due, first of all, to the fact that large international networks do not willingly go to remodel the hotel to international standards. And besides, only hotel units can be summed up to these standards. And secondly, this is due to not very profitable economic conditions. The hotel business is a long business, which begins to pay off only after 10-12 years. And the amount of investment required for development is estimated at billions.Franchising In the Hotel Business

Not all entrepreneurs are ready for this, although many want to work under a well-known brand, because it ensures the increased popularity of the hotel and increases the loading of the hotel itself. And it also provides sales channels and helps to pull staff to the international requirements of the hotel business in matters of customer service. If you look at the other side, then, starting to build your own hotel for 70-100 rooms, entering the business will be equivalent to building a business together with the brand. Because, cooperating with the brand, the entrepreneur immediately avoids the mistakes made by those who build and launch the hotel themselves.

Check This Out: A Business Plan For The Sewing Workshop

Higher requirements of consumers to the level of service and service in hotels move the market to the emergence of new hotels of well-known international networks. In order to ensure this level, it is necessary to engage in serious training of personnel to international standards, and this does not require small money. The issue is especially acute in the regions. To provide training for personnel, investment, time and effort are required. And many entrepreneurs do not want to waste time and money on this, they need the business to pay off as soon as possible, preferably for a couple of years, which in principle is impossible in the hotel business.

It is important to note that another deterrent in building a franchise hotel chain is that existing hotels are almost impossible to remodel to international standards. For example, the number in the Soviet hotel is only 14 sq. M., While, adjusting the hotel under the brand, you will have to combine several numbers. It is much more profitable to build new hotels.Franchising In the Hotel Business

Table of Contents

  • Advantages of franchising in the hotel business
    • What to consider before buying a franchise in the hospitality segment

Advantages of franchising in the hotel business

Despite the existing difficulties of franchising development in the hotel business, there are a number of advantages that make this market interesting and attractive for investors.

So, what gets the franchisee of the world franchise chain:

  • ·         Clear and well-built concept of the hotel, which, as a rule, has been worked out more than once in other hotels, and all the pros and cons have been studied;
  • ·         A carefully thought out business strategy;
  • ·         Marketing campaigns and PR actions;
  • ·         Assistance and continuous support for business development;
  • ·         Service standards developed by this hotel network;
  • ·         Global channels of the system of sales and distribution, which are guaranteed to provide a flow of guests to the hotel;
  • ·         Standards of security and operational management of the hotel;
  • ·         Discounts and preferential terms provided by international suppliers of hotel equipment of high quality.

Franchising In the Hotel Business

What to consider before buying a franchise in the hospitality segment

Before entering the global franchise network, it is especially important to consider the following points:

  • ·         The concept of the hotel;
  • ·         The history of the hotel operator;
  • ·         Profitability, as well as the financial status of the franchisor;
  • ·         Reviews of other franchises from this hotel chain;
  • ·         Comparative analysis of pricing policy between several hotel chains.

Franchising in the hotel business is not the easiest way to start your own business and requires careful analysis. It’s worth thinking about what the market really needs.Franchising In the Hotel Business

If we look at the development of the situation in the hotel business in the regions, we will see that hotels that are currently entering the market are luxury hotel hotels, and therefore inaccessible for 85% of the population. Since the competition in this segment is quite high, it will be very difficult to recoup such a business, given the crisis situation in the country.

Keep Reading: Business In A Crisis With Minimal Investment

At the same time, we see the lack of a sufficient number of hotels of category 2 *. More correctly and economically more profitable would be to provide the market with budget and economy options for hotels. And it is this business that is a promising model.

Tags: franchising, hospitality segment, hotel business, hotel fund
Previous Article
Next Article

About Author

Gabriel Montgomery

Hi, I am Gabriel Montgomery; I am an entrepreneur, father, mentor, and adventurer passionate about life. At this moment, I am working with depression and anxiety.

Related Posts

  • Signs that a career in architecture could be for you

    November 25, 2023
  • Spot new opportunities in the market through business advisory

    October 10, 2022
  • Suffering from Long Covid: How to Get Your Life Back on Track

    May 11, 2022

Leave a Reply

Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search

About Speaky Magazine

Speaky Magazine was founded in January 13, 2018; more than 1 and half yeas ago. The context has changed, although the basic concern remains: to guide the reader through a trends perspective of reality (local and global), helping him to form an informed, well-founded and mature judgment on the issues discussed in society. In other words, contribute to the formation of a conscience capable of discerning.

Read more…..

Write for Speaky Magazine

We are looking for writers, bloggers and journalists to write unique and useful articles about lifestyle and daily trends. Topics include: Decor, small business ideas, sports, lifestyle, fashion, relationship, wedding ideas, photography tips, travel tips and many more.

Read more….

Popular post

  • Sans Fight Simulator: Is It Worth Playing?Sans Fight Simulator: Is It Worth Playing?
  • Explore RealWatt legitimacyIs RealWatt a Scam?
  • Answer for Is Plannet Marketing a Pyramid SchemeIs Plannet Marketing a Pyramid Scheme?
  • How to Use a Portable Wooden Backdrop Stand for a Magical CeremonyHow to Use a Portable Wooden Backdrop Stand for a Magical Ceremony
  • Can solar panels be installed on listed buildings?

Random Posts

  • corner design house
    4 Things to Consider While Searching for Commercial Real Estate in Connecticut January 24, 2022
  • Being Healthy in Winter – Three Winter Health Risks October 19, 2022
  • Anthony Joshua vs Tyson Fury: What we know so far February 24, 2021
  • Become a Pink Panther April 6, 2022

Category Posts

  • Is There Really an Unbreakable Rope?
    Is There Really an Unbreakable Rope? September 30, 2023
  • Moving Fragile and High-Value Items in Christchurch
    Best Practices for Moving Fragile and High-Value Items in Christchurch June 28, 2023
  • Best Sulfate-free Shampoos By Better Not Younger
    How To Have Safe Anal Sex November 30, 2022
  • The Australian Transaction Reports and Analysis Centre Reporting: Everything There Is to Know November 1, 2022

Categories

  • Business
  • Celebrity Gossip
  • Devices
  • Diet
  • Digital Marketing 
  • Education
  • Entertainment
  • Exercise
  • Exterior Design
  • Fashion
  • Fitness
  • Food and Drink
  • Furniture
  • Games/Sports
  • Garage
  • Gardening
  • Gift Ideas
  • Healthy Food
  • High Tech
  • Interior Design
  • Internet
  • Lifestyle
  • Mountain
  • Natural Remedies
  • Opportunities
  • Pet Care
  • Places
  • Plumbing
  • Renovation
  • Reviews
  • Sea
  • Shopping
  • Social Media
  • Spa
  • Tourism
  • Trends
  • Vehicle
  • Wedding
  • Well-being
  • Yoga

Archives

  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • August 2012
Theme by ThemesPie | Proudly Powered by WordPress