The hotel franchise industry has the business grown significantly over the past decade. In 2010, about 70% of branded hotels were franchised, but by 2019, that number had jumped to about 80%, according to JLL.1 research.
Most brands are household names. Travelodge, Motel 6, Super 8 and Red Roof Inn may come to mind. But did you know that hotel franchises also include top names like Marriott, Hilton and Wyndham? Just imagine your future. As a franchisee, you can become the owner of a hotel with a sign with the logo of one of the largest hotel brands in the industry.
In this article, we look at the best hotel franchise options for individuals who are considering buying a franchise. Finally, we also present useful advice on how to choose a hotel franchise in light of current trends.
The best full-service hotel franchises
A full-service hotel is one that provides guests with a variety of services and amenities that are either included in the price or have an additional price tag for the service. Services means things like restaurant, room service, newspaper, conference rooms, bed linen and more. Other terms for these properties may include upscale, midscale, and luxury or premium brands. Boutique hotels can fit this definition. Here are the best full-service hotel franchises:
Hilton is a well-known brand in the hotel industry and a leader in hotel franchises. They have offices, hotels and resorts in North America, South America, Europe, Africa, the Middle East and Asia Pacific. This hospitality company has been franchising since 1965. Franchisees offer assistance with design and construction, management and sales. The brand also has an extensive rewards program to bring in repeat customers.
The franchise fee for this hotel franchise is $75,000. And the total initial investment ranges from $29,162,700 to $111,963,150.
Wyndham is a hotel brand with more than 9,000 hotels in more than 80 countries. The company offers an innovative technology platform that helps franchisees and teams manage operations with ease. They also offer marketing assistance, personalized support and several hotel franchise models to choose from. Wyndham Hotel Group also offers more than 20 hotel brands for those interested.
The Wyndham brand franchise fee is $150,500. And the initial investment ranges from $42,112,580 to $69,188,897.
Marriott International Inc. is a global hotel and accommodation franchisor. It is also a leading name in the hotel business. There are more than 7,400 properties in 135 countries. And the loyalty program has more than 140 million members. The company takes an owner-centric approach to its franchise program. So they tailor the opportunities to each franchise. And it’s not just the Marriott brand. The Marriott Group offers more than 30 franchise hotel models, from the Ritz-Carlton to the Courtyard.
The franchise fee for Marriott resorts is $120,000. And initial investments for new centers range from $74,129,490 to $117,209,490.
Hyatt specializes in fully personalized and collaborative franchisee relationships. The company has been in business since 1957 and has about 700 hotel franchise locations in 56 countries. In addition to the Hyatt brand, the company operates a number of specialty properties, including Grand Hyatt, Hyatt Place and Miraval. The brand has a team of development experts who work closely with each new franchise operator to launch new hotel locations.
The franchise fee for new hotels ranges from $60,000 to $100,000. And the initial investment ranges from $13,645,000 to $153,723,000.
Sheraton is a hotel franchise that actually falls under the Marriott Group as of 2016. But it’s a well-known brand that even has its own offshoots like Four Points by Sheraton. The franchisor has actually been around since 1937. So it has built up a lot of brand recognition over the years. There are nearly 450 properties in 74 countries around the world. And the brand is part of a luxury resort line that is especially popular with international travelers.
The fee for new franchises ranges from $85,000 to $150,000. And initial investments range from $53,521,090 to $82,627,590.