3 Important Things to Consider Before Joining a Hotel Franchise
Hotel owners throughout the world are realizing the benefits of joining a renowned brand in order to gain instant recognition in the market and increase their business. However not all hotel owners are happy after they get associated with a brand. It is a tough and big decision which could alter the course of your business. So you need to make a wise decision after lot of careful thought.
If you are you considering hotel franchising you need to keep a few important things in mind which we list below:
- The Brand
Obviously this is the first and main consideration. You need to consider what brand is suitable for your budget and hotel type. For example – Hilton hotel is known for having expensive, luxury facilities while Holiday Inn is known for providing affordable lodging options for travelers. So you need to decide depending on your target audience.
- Franchise Cost
Franchise or royalty fee is just a part of the overall cost. There may be other costs involved for joining a big hotel chain. You may be charged an initial fee, annual fees for the reservation system, expenses associated with guest programs, marketing etc. There may also be a liquidation damage fee if you decide to terminate the franchise affiliation before the term ends. Be aware of all the costs involved so that you can make an informed decision.
- The Benefits
Understand the benefits you will be getting out of this affiliation. Is what you are getting more than what you are paying? Do you feel the benefits outweigh the costs? If that is not the case you need to seriously consider whether the deal is good for your business or not.
The main benefit that franchisees should get out of the affiliation is leveraging the brand’s image and popularity to get more occupancies. The business turnover should increase as a direct result of your association with a hotel chain. If this does not happen then what exactly are you paying the hefty fees for? You need to reflect deeply on this before making your final decision.
Conclusion:
Finally let us invite you to have a look at what Stay Express has to offer you. We believe we are offering one of the best deals in the market. We have an all inclusive franchise deal where the hotels will get our in-house software tools as well as host of other benefits, thus saving you anywhere from $20,000 to $200,000 in expenses.
Visit www.JoinStayExpress.com to know more…