Hotel Franchises: Things to Know & Best Alternatives

There are a lot of different franchises to invest in, and picking one that fits your goals and business style is important. It pays to weigh the pros and cons, especially when making a pivotal choice like what kind of business to run. A hotel franchise offers some significant positive traits but requires a lot of its owner. Let’s look at the plusses and minuses, what you need to do to make an informed decision, and how an alternative like Altitude may suit you better.

A Hospitable Industry

Hotel franchises draw a lot of interest and dominate the U.S. hospitality market. Hospitality and online travel tech consultant Max Starkov said in a February 2024 article 73% of hotel rooms in the U.S. belong to branded hotels. Their appeal can be seen in several ways.

First, franchises offer established and proven business models. They also have the potential for substantial earnings; market analysis company IBISWorld reports as of January 2024, the hotel/motel market in the U.S. was valued at $239 billion. They also offer a large degree of autonomy, allowing franchisees to operate as they wish within the terms of their franchising agreement and while upholding the standards of their brand. Lastly, they receive support from their franchisors with high-level advertising, marketing, brand recognition, and franchisor support services.

The Cost of Doing Hotel Business

Hotel franchises have some perks, but they don’t come cheap. A hotel franchise’s cost doesn’t end with your monetary investment. Real estate advisory firm NewGen Advisory reports that as of February 2024, franchise fees for hotels range from around $10,000 to over $100,000. On top of that, regular operational costs are hard to pin down, due to varying fees between hotel brands, which may include loyalty program fees and guest complaint fees. There are also labor costs, hotel sizes, utility costs, and more to consider. Lastly, hotels require considerable staffing; depending on the size and services provided, you may need reception staff, housekeeping, and maintenance workers, all of whom will need training and orientation.

Key Considerations

Before you decide on a franchise, there are several important things to look into:

Check what each brand is known for to see which one lines up with the kind of service you want to provide. For example, the Hilton franchise, the Marriott franchise, and the Holiday Inn franchise appeal to different markets.

Research what people visiting your local area are looking for in a hotel to determine which brand would fit well with market demands.

Evaluate each franchisor by speaking with existing and former franchisees.

Check reviews, comparison articles, and other sources to see how a brand stacks up against its direct competitors.

Query the franchisor about long-term plans and how it’s responding to changes and trends in the market.

An Alternative in Your Price Range

A hotel business may be profitable under the right circumstances, but it’s a business with a lot of moving parts, from customer service to property maintenance to housekeeping and more. If this sounds like more than you bargained for, consider an alternative in the same price range: a trampoline park franchise.

Owning and operating a trampoline park offers a variety of benefits. Multiple revenue streams include memberships to bring in repeat business and encourage customer loyalty. With an indoor facility, you can offer customers a safe, comfortable environment to play in that’s not weather- or season-dependent. Cleaning is also easier, since you won’t have to worry about washing bed sheets, scrubbing multiple bathrooms, maintaining a swimming pool, etc. Lastly, according to IBISWorld, the trampoline market is growing as of January 2024, so there are more untapped local markets where you can bring in a family-friendly place where people can take part in active, healthy recreation.

Jump on Your Franchising Opportunity with Altitude

We’re happy to offer you the opportunity to join our trampoline park franchise. We’re always looking for ambitious, eager entrepreneurs like you, ready to bring a fun, healthy activity to your local area. We provide you with all the training, support, and guidance you need to achieve success and grow your market presence. Fill out a franchise form today to learn more about franchising with Altitude.

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