Franchise Hotels Aren't All Bad!

Friday, March 23, 2012

If your franchise gets you over 60% occupancy and a $100.00 adr, it's kind of hard to complain. My flagged hotel is only 47% occupancy and has a $60 adr. Franchise fees take a large percentage of your cash flow if you don't have a lot of cash flow to begin with. Some hotels and some operators really need a flag. If the style of your hotel is plain or standard a flag can make you stand out. If the operator doesn't like to do improvements or know how to deliver customer satisfaction, a flag can be very helpful. There's obviously a place for national hotel franchises but I think it's time for independent hotels to take market share. I think economy franchises that allow conversions are going to be drastically reduced. Some day people will realize that they're paying the franchise fees and all their getting is a name they've heard of. The bad operators of these economy hotels will be the last to leave. I think even they know they need help from a franchisor. When only bad operators are operating converted economy flags the public will eventually elect to try an independent hotel.

It used to be that a national flag was necessary to compete. There property management systems and their GDS connections were state of the art. Now you can lease a cloud PMS for about $1,750/year and get a seamless connection to a low cost GDS. Everything the flags offer can now be duplicated for 1/10th the cost. The playing field has been leveled. www.atlodging.org is our website. We're under construction but open to the public. Stop in and make a suggestion to improve the web site. We offer many free services to hoteliers and we'll help you get 5% more off the best and least expensive property management system with a seamless GDS connection and booking engine for your web site. We've got some great marketing ideas and they're all free. I'm done advertising and I'm tired of typing. Good luck to all, take care.

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@LodgingOrg Franchise
1420 US-131
Petosky, MI

Phone: (866) 270-2377
Fax: (815) 301-3156

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