What Does a Hotel Franchise Cost?
The selection of an appropriate hotel franchise affiliation affects a property’s ability to compete in the local market, generate profits, achieve a certain image or market orientation and benefit from referral business. Because the success of a hotel is primarily based on the cash flow it generates, owners must weigh the benefits and services of a national franchise affiliation against the total cost of such a commitment. The cost of a hotel franchise affiliation is based on various fees and expenses charged by the franchisor for the use of the brand’s name, logo, identity, image, good will, procedures and controls, marketing, and referral and s\reservation systems. Franchise fees normally include an initial fee paid with the franchise application, plus continuing fees paid periodically throughout the term of the agreement.
Leora Lanz
HVS Sales & Marketing Services
516-248-8828 Ext 278
HVS