Super 8 Owners Form Independent Association

Owners 8 Association to Focus on Diminishing Profits, Lack of Control 

STATESVILLE, North Carolina (Blue MauMau) - In an effort to challenge a shift in the balance of power between Super 8 Motel franchisees and its franchisor Wyndham Hotels, a publicly traded company, the Owners 8 Association has been formed. Jay Patel, interim president, said this is a bold move of more than 570 owners because it is the first independent owners association in the company's 33 year history. "We understand that the goals of our franchisor . . . and their franchisees inherently differ. But in our opinion the company's drive for profitability at the expense of its franchisees has gotten out of hand and will result in a deterioration of the Super 8 brand." 

The hotel giant which bought Super 8 along with eight other chains in 1993, was then under the name Hospitality Franchise Systems, controlled by hotelier Henry Silverman. The company then changed the name to Cendant Hotel Systems but was recently renamed Wyndham Hotels.

Previously, the franchise owners' group was represented only by a Franchisee Advisory Board made up of a limited number of members hand picked by the franchisor, serving unlimited terms. Now, according to Patel, the Owners 8 Association is the voice of Super 8 owners, and an indispensable resource for the 2,000 + hotel owners of their great economy franchise. It is, however, offering its membership to all hotel/motel operators regardless of brand affiliation.

The Owners 8 Association identifies the most significant issues facing the Super 8 Motel owners. These issues include declining profit margins, lack of franchisee participation and the overall diminishing control of owners over their motels.  The association will focus on objectives and tactical initiatives needed to serve the members and creates a group where owners can operate cooperatively. It will also keep members informed regarding laws, regulations, industry trends, and trade news through regular communications and educational programs.  

Patel said the fact that their association was formed so quickly, almost 600 members in three months, is not a good sign. He said it shows that the franchisor is not operating as it should be. Right now Owners 8 is in its infant stages of formation and is soliciting input and ideas from its members. After in-house meetings and discussions, it will take the first step of attempting to resolve issues with the franchisor by requesting a meeting with Wyndham Worldwide representatives. The association has retained the law firm of Dady & Garner to represent its interests.

Patel and other organizers feel that Wyndham has not considered the interest of its franchisees in decisions that they have made. While a majority of the decisions may have resulted in better recognition for the brand, the burden of those decisions has fallen on the motel owners. Many of the benefits from those decisions are neutralized and in most cases end up creating a negative effect on owners.  He said, "This must become a profitable relationship that helps the brand grow and expand in a positive direction."