Reasons to Invest in Hotel Industry Franchises
Reasons to Invest in Hotel Industry Franchises
Hotel Franchises are not low-cost investments but your return on investment can be huge. Here are some facts for your consideration:
• The hotel market is booming and gaining more attention from franchise investors.
• Even with worldwide economic problems the lodging industry is projecting growth in the next few years.
• Great opportunities for this type of business exist in the U.S and worldwide; the lodging industry is constantly expanding.
• The hospitality sector demands a variety of suppliers.
• Food, beverages and retail stores provide other modes of revenue for hoteliers and opportunities for other franchised businesses.
The lodging industry comprises what is probably the world’s fastest-growing business, employing one in ten people worldwide. In 2006, 150,000 new rooms were opened worldwide which, according to MKG Consulting, was the highest growth ever recorded. On January 1, 2007 the worldwide supply of the top 200 groups reached 43,000 hotels and 5.5 million rooms. Since 2005, there has been a marked acceleration in new lodging development.
According to the American Hotel & Lodging Association, tourism is currently the third largest retail industry, behind automotive and food stores. It is also interesting to note that residents and international travelers in the United States spend an average of $1.8 billion a day on tourism. Tourism includes more than 15 interrelated businesses of which lodging is one of them. Others are airlines, restaurants, cruise lines, travel agents, et cetera. The typical lodging customer is split between travelers for business, 48%, and travelers for leisure, 52%.
Hotel Revenues are NOT only from Rooms
In 2006, hotels also enjoyed the benefit of increased revenue from sources other than the rental of guest rooms. Food and beverage revenues grew 7.1%, while sales in other departments (such as parking, gift stores, spa, etc.) increased 5.9%. PricewaterhouseCoopers research shows that at the end of 2007 the industry made $27.4 billion in profits while the occupancy reached 63.9%.
Lodging statistics show healthy gains in all the hotel categories. Full-service and all-suite hotels achieved the greatest profit gains of 15.9% and 15.2% respectively. Limited service and convention hotels increased their profit by 10.8%. The most exciting aspect of the hotel industry’s growth and popularity is the fact that many of the most influential players in the sector are franchise systems.
If you are interested in investing in a franchised hotel brand or you already own one, if you are an investor, or you are a supplier in the hospitality industry you may want to obtain the Franchise Offering/Franchise Disclosure Document (UFOC/FDD) of the franchised hotel brand. This franchise document, the UFOC/FDD, is filled with hard-to-obtain information about the company’s structure and franchise operations.
Reasons to Invest in Hotel Industry Franchises - To learn more about this author, visit Mary Tomzack's Website.
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Reasons to Invest in Hotel Industry Franchises
Hotel Franchises are not low-cost investments but your return on investment can be huge. Here are some facts for your consideration:
• The hotel market is booming and gaining more attention from franchise investors.
• Even with worldwide economic problems the lodging industry is projecting growth in the next few years.
• Great opportunities for this type of business exist in the U.S and worldwide; the lodging industry is constantly expanding.
• The hospitality sector demands a variety of suppliers.
• Food, beverages and retail stores provide other modes of revenue for hoteliers and opportunities for other franchised businesses.
The lodging industry comprises what is probably the world’s fastest-growing business, employing one in ten people worldwide. In 2006, 150,000 new rooms were opened worldwide which, according to MKG Consulting, was the highest growth ever recorded. On January 1, 2007 the worldwide supply of the top 200 groups reached 43,000 hotels and 5.5 million rooms. Since 2005, there has been a marked acceleration in new lodging development.
According to the American Hotel & Lodging Association, tourism is currently the third largest retail industry, behind automotive and food stores. It is also interesting to note that residents and international travelers in the United States spend an average of $1.8 billion a day on tourism. Tourism includes more than 15 interrelated businesses of which lodging is one of them. Others are airlines, restaurants, cruise lines, travel agents, et cetera. The typical lodging customer is split between travelers for business, 48%, and travelers for leisure, 52%.
Hotel Revenues are NOT only from Rooms
In 2006, hotels also enjoyed the benefit of increased revenue from sources other than the rental of guest rooms. Food and beverage revenues grew 7.1%, while sales in other departments (such as parking, gift stores, spa, etc.) increased 5.9%. PricewaterhouseCoopers research shows that at the end of 2007 the industry made $27.4 billion in profits while the occupancy reached 63.9%.
Lodging statistics show healthy gains in all the hotel categories. Full-service and all-suite hotels achieved the greatest profit gains of 15.9% and 15.2% respectively. Limited service and convention hotels increased their profit by 10.8%. The most exciting aspect of the hotel industry’s growth and popularity is the fact that many of the most influential players in the sector are franchise systems.
If you are interested in investing in a franchised hotel brand or you already own one, if you are an investor, or you are a supplier in the hospitality industry you may want to obtain the Franchise Offering/Franchise Disclosure Document (UFOC/FDD) of the franchised hotel brand. This franchise document, the UFOC/FDD, is filled with hard-to-obtain information about the company’s structure and franchise operations.
Reasons to Invest in Hotel Industry Franchises - To learn more about this author, visit Mary Tomzack's Website.
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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