hotel franchise

What a hotel franchise should be like, what the franchising package of a successful hotel franchise should consist of - we will try to describe in our article. The article may be useful for those who are just choosing a hotel franchise and for entrepreneurs who want to package their hotel franchise.
In this article we will look at what a hotel franchise should be. There are not many hotel franchises on the market, there are clearly fewer of them than in other industries, in public catering, for example, but this is a very promising area for franchising.

This article of ours will be useful for those who want to buy a franchise - from the article they will learn the contents of the franchise. The same contents of the franchise package will be of interest to people who would like to package their hotel franchise.

Benefits of a hotel franchise

What is the main advantage that a hotel franchise should provide? In my opinion, the primary metric for evaluating the effectiveness of a hotel business is occupancy rate. This implies that our hotel should be the preferred choice for bookings over competing hotels. If the franchise cannot deliver this advantage, it holds no value.

The entire content of the franchise package, including support, standards, rules, and technologies, should be geared towards achieving one key metric: increasing occupancy rates. This is, in fact, easily verifiable. Visit a franchised hotel and a non-franchised hotel in the same city.

If the franchise provides a competitive edge, the franchised hotel will be bustling with activity and guests, while a vacant hotel suggests that the franchise offers no advantage.

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Hotel franchise brand

In franchising, brand plays a huge role.
Guests will choose a recognizable brand when booking rooms so as not to spoil their impression of their stay. A hotel franchise, absolutely, should have such a brand. Example, the AZIMUT hotel chain.
You may not get a luxurious room and amazing service, but you can still expect a certain level of quality, and in a new city where I don't know any hotels, I'm more likely to choose a recognizable brand.

Customer value

Hotel guests pay attention to all sorts of little details in the design of rooms and public areas of the hotel. A franchise network must be able to make its guests happy. Interesting design solutions, added value throughout the customer journey - this is what one would expect from a hotel franchise. An entrepreneur in the region is not always aware of industry trends. A franchised hotel chain must navigate its business trends and recommend solutions to franchisees that will ultimately meet the needs of guests.

System for attracting and processing orders

A hotel franchise must provide a proven system to attract customers. This includes both advertising tools for attracting customers, and a system for managing reservations and processing incoming requests from customers. It is very sensitive for hotel clients if the system malfunctions. If a client has booked a room, it is better that this number will be waiting for him and will not be given to another.
Creating a hotel ecosystem
A hotel is a complex system whose goal is to make money for the owners. This system includes several elements: restaurant, entertainment, rental of additional rooms and various additional services. All this works together and should complement each other.

There should not be such situations when, for example, everyone comes to a restaurant in a hotel, but the rooms are empty, or, on the contrary, they are ready to live in a hotel, but for some reason they don’t go to the restaurant, but order food from other cafes in the city.

The task of the franchise is to build a complex that will give the consumer a great experience and involve them in the varied life of the hotel, providing a full range of services for a good time.

Working hotel business model

I’ll say a trivial thing, but any franchise buyer invests money to return the investment and earn money as soon as possible.

The franchisor’s task is to meet these expectations of its partners. Otherwise, the chain simply will not develop and no one will open new hotels.

A franchised hotel must operate in an optimal mode: what the costs should be, what the profitability will be, how to reduce costs, how to set up staff work - the franchisor must know all this and must be ready to share this information with his partners.

The founder of the franchise is an entrepreneur with experience in this business. He has already done his best for you and has put together a set of business tools that work. By joining a franchise, a partner should gain the most efficient way to do business in that industry.

Hotel rebranding

In every city in our country there are a couple of hotels that are in a good convenient location, but they are outdated, they have old renovations and Soviet service. In most cases, the buyer of a hotel franchise is not building a new building, but is the owner of such an outdated business. An entrepreneur buys a franchise to rebrand his hotel and start making money.

When developing a hotel franchise, it is worth taking this group of franchisees into account and providing them with ready-made solutions on how to transform an old hotel into a hotel of your brand.
Naturally, it will not be possible to cover such a broad topic in one article, but we still listed the main points. Now you know what to look for if you are buying a hotel franchise. If you are packaging your hotel franchise, using this article you will be able to “synchronize watches” and once again check whether your franchise product contains everything that is necessary, everything that the franchisee expects from you.
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