|
|
Like this article? PLEASE +1 it! |
|
Reasons to Invest in Hotel Industry Franchises
Written by: Mary TomzackArticle Overview: The lodging industry comprises what is probably the world’s fastest-growing business, employing one in ten people worldwide. Even with worldwide economic problems the lodging industry is projecting growth in the next few years. 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.
![]() |
Free Download - Why You Lost Yet Another Franchisee Prospect to Your Competitor By Mary Tomzack |
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.
Article Tags: american hotel, cruise lines, economic problems, food and beverage, food beverages, food stores, franchised businesses, hospitality sector, hotel franchises, hotel industry, hotel market, hotel revenues, hoteliers, international travelers, lodging association, lodging development, lodging industry, retail industry, tourism tourism, worldwide supply
|
About the Author: Mary Tomzack RSS for Mary's articles - Visit Mary's website MARY E. TOMZACK is the founder of FranchiseHelp.com - the world's largest directory of franchise business opportunities. She is a noted franchise expert and the author of Tips & Traps When Buying a Franchise, one of the industry's first and most respected guides to finding, evaluating, and financing a franchise investment. Ms. Tomzack is often interviewed for franchise articles in publications such as The New York Times, "Franchise World" and "Entrepreneur Magazine" and was recently featured at a Harvard Business School panel on franchising for MBAs. Read FranchiseHelp's latest franchise information at the FH blog or reach Mary at company@franchisehelp.com or at 888-491-FRAN (3726). Click here to visit Mary's website 50 Franchises for Under $50K! Setting Priorities Worksheet |
Related Forum Posts
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
RULE YOUR BUSINESS LIKE A SHINE STAR
Quick Tips on Buying a Business
Soda Vending Machine = Energy Hog
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.



