Saturday, November 28, 2015
Text Size

What are the Advantages of buying a hotel or motel franchise business?

Let’s face it; whether you are traveling to another part of the world or spending a night in a hotel downtown, you want to know you are staying a recognized name-brand hotel.  Nowhere is it more comforting to know you are in reliable hands than when you are traveling. But if you are starting a franchise business, the name recognition of top hotel and motel franchises is even more important to you.  This is one of the many advantages of buying a hotel or motel franchise

In the U.S., more than two-thirds of all hotels are affiliated with a known chain, and less than one third are independently owned.  Interestingly enough, these trends are reversed in other parts of the world.  For the past 40 years or more, franchising has been the number one way to start a hotel/motel business in this country, and it doesn’t look like that will be changing anytime soon.

Selecting a franchise from all the great opportunities that are available will require a critical eye and some due diligence on your part, however.  With the number of hotel companies now offering franchises, and so many advantages of buying a hotel or motel franchise, choosing just one will require the consideration of several factors.

  1. Understand the image conveyed by a given hotel brand, whether positive, negative or neutral, and how that may impact a new franchisee’s ability to get started in a competitive market.
  2. Depending on where your hotel or motel will be located, you will need to make sure it is a good fit with the region’s feeder market.  This means you will need to identify where travelers are coming from, and be sure your chain is well-positioned within those markets.
  3. How much will it really cost you to be affiliated with each brand? Don’t just dwell on the royalty fee, but look at the annualized costs, equipment and personnel costs, and how much insurance you will need.  Look at what your expenses will be over the entire term of the agreement, and be sure to compare these costs for several potential franchisors.
  4. Look into how the franchisor operates, such as how close they will would allow a similar affiliated franchise to be in proximity to yours?  Learn how the chain’s current franchisees feel about the chain now that they have been running a business for while.

There are many advantages to buying a hotel or motel franchise business, but it is not a decision you should go into lightly.  Prepare to ask the tough questions and do your homework first, and look for franchises for sale by owner at

Follow Our Feed

  Subscribe in a reader

Enter your email address:

Delivered by FeedBurner

Search Franchise Directory

Search for:
Liquid Capital
Select Category