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Analysis: Are Franchise Fees Worth the Cost?

Analysis: Are Franchise Fees Worth the Cost?

In the current market environment’s modest growth in revenue, hotel owners and operators are paying extra attention to their operating expenses. Per the June 2017 edition of Hotel Horizons, RevPAR growth in the United States is forecast to remain under ...

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Median Franchise Cost is 11.8 Percent of Rooms Revenue

Median Franchise Cost is 11.8 Percent of Rooms Revenue

The median franchise cost is 11.8 percent of rooms revenue, according to the 2014 United States Hotel Franchise Fee Guide from HVS. Franchise fees for full-service brands were mostly above the median franchise cost, while extended-stay brands were largely below ...

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Assessing the True Cost of Franchise Fees

Assessing the True Cost of Franchise Fees

The series of fees that hotel companies charge their franchisees covers a variety of services provided by the franchisor. PKF Hospitality Research’s annual Trends in the Hotel Industry survey discretely captures four of these fees—advertising and marketing, reservations, royalty, and loyalty ...

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