Should Hotels Join a Franchise Brand Or Operate Alone?

Is it a good idea to join a franchise or is it preferable to run the hotel independently? Every hotelier may have had this question cross his or her mind at least once. There is no clear cut answer that will apply to all cases across the board, however in most cases joining a franchise brand does come with certain benefits. However there is a small catch!

The important condition is that the franchise company should be a trustworthy one which offers a good deal to its franchisees. In such a case, it can be highly beneficial for small, medium or big hotel properties.

When you join a good franchise company that provides great benefits and cares for its partners, you can enjoy tremendous benefits. You can see a faster growth of your business, better revenues, higher savings and increased NOI (Net Operating Income).

On the other hand, joining a franchise brand that does not provide much benefits or whose charges are sky high may actually cause a lot of trouble to hotels. There have been many cases where hotel owners have been frustrated and disappointed after entering into a franchise deal. They realized the deal was not to their advantage but they were stuck with it for many years till the contract period expired.

So hoteliers need to be careful when deciding on which brand to join. Don’t just expect the big names to be the best or most suitable for you. Many times that may not be the case. There are many hoteliers who were very disappointed after joining some of the industry’s leading hotel franchising companies. Don’t blindly fall for the big names. Rather do your due diligence.