Europe is likely to see a greater proportion of branded hotels coming on stream as the concept of franchising gathers pace among hotel operators in the region, says global hotel consultancy HVS. Until now, the uptake of franchise agreements in Europe has been relatively slow. However, according to a new report from HVS, an increasing recognition of the strength of a hotel brand and brand affiliation has prompted the concept to expand. The fact around two-thirds of European hotel stock remains unbranded presents a huge opportunity for branded operators keen to expand.
The HVS report, Hotel Franchising in Europe, outlines the fact that franchising agreements enable rapid expansion for brands entering new markets. The franchises are increasingly operated with the assistance of independent management companies. “There is clearly a huge opportunity for growth of branded hotels in Europe, including franchises,” said report co-author HVS London director Sophie Perret. “A few years ago hotel operators were keener on management contracts. Now, franchise contracts are equally as likely to be proposed to owners by the brands.” Read the full report over at HVS.