What to understand first
Hotel franchising differs materially from small owner-operated formats. Separate the franchise relationship from the property, finance and management agreements. Test occupancy, room rate, distribution commissions, refurbishment cycles and reserve requirements with qualified advisers.
Questions to take into the first conversation
- Do you own, lease or operate the underlying property?
- Which refurbishment and brand-standard costs are compulsory?
- How do direct bookings compare with third-party booking channels?
- What management and staffing structure is expected?
This route may suit someone with
- Access to substantial capital or an appropriate property route
- Experience managing complex service operations
- Ability to model occupancy and seasonal cash flow
- Long-term appetite for brand and property commitments