Independent Hotels Vs Franchising – Which is Better?
Is it better to run your hotel independently or join a franchise? Let us consider the pros and cons of each.
Benefits of Independent Hotels:
- You are the boss – you don’t have to answer to anyone.
- You don’t have to follow any rules or restrictions imposed by others.
- You can save money on franchise costs and use that money for true development of your property and for business growth.
- Total revenues and profits are yours to keep, you don’t have to give a share to anyone.
Disadvantages of Independent Hotels:
- You are alone to face all challenges and fight all battles. There is no one else to guide and advise you.
- You will have to do all the marketing and brand building yourself.
- You will have limited resources and budget. You will have to operate within those limited constraints.
- It may take years to build a brand name for your hotel.
Disadvantages of Franchise Model:
- You don’t have much control over the hotel operations. You are required to follow the norms and standards set by the brand.
- You will have to pay hefty fees.
- You will have to share your revenues.
- You may lose the brand flag anytime and then you will be left high and dry as you did not build your own name in the market.
Benefits of Hotel Franchise:
- You will get experienced support and assistance of experts and skilled professionals.
- You can get instant brand recognition.
- You can see increased revenues and profits within short period of time.
- You can get all the marketing and technical know-how from the brand, along with software tools like PMS, etc.
- You can get connected to GDS/IDS in order to increase exposure for your hotel and boost the occupancy rates.
Stay Express – Hotel Franchising With a Difference
We have covered the general pros and cons of hotel franchising vs running independent hotels. Now let us briefly see what are the benefits of joining Stay Express brand – the transparent, hassle-free, fair-franchising company that is creating news in the hospitality industry.
- SBA approved
- Low joining fees
- Save thousands of dollars in annual fees and royalty
- Sensible PIPs
- Short term and long term franchisee contracts available
- No unnecessary and pocket-heavy demands upon the hotel
- No unneeded and forced property renovations or upgrades
- Get connected to 650,000+ travel agents and 2000+ OTAs
- Get feature-rich hotel applications like PMS, booking engine, CRS, etc
- And many more benefits…