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6 Comments

Holiday in is IHG - I messed

Holiday in is IHG - I messed that up ...LOL

I do not think your comments

I do not think your comments resonate with seasoned travelers. We know the game. In my wallet are my Marriott Platinum, Hilton Diamond, IHG Platinum Elite and SPG Platinum Preferred as well as Choice, Holiday Inn and 5-6 other loyalty programs. Obviously I use the first 4 most. Grated PSG has fewer budget choices, but the other major chains all have a brand that competes at a level of service ad a price point. For example a Homewood Suites does not compete against a Hilton Garden, it competes against a Marriott Residence Inn and the budget chain Extended Stay America which does not have a loyalty program. I am on the road 40 + weeks a year and have been for 25 years now.

Holiday Inn Express does not compete against Homewood Suites in any way shape or form.

And by the way we all know why Holiday In Express is a poor performer, it has the same issue Hampton INN USE TO have on it.

Re: Exclusive territory

Visitor: "The best-known hotel franchise companies rarely grant exclusive territories to their franchisees"

That's an interesting idea. I'm sure you understand if we just don't take your word for that. So, can you list the "best-known hotel franchise companies" and why they are the best-known? And then can you put into another column on whether each of these offer exclusive territory, according to their FDD/franchise agreement.

Now THAT would be very useful.

Not all competition is the same. Why encroachment matters

Despite competition that is outside the hotel family, all competition is not the same. Territory and encroachment matter. First, an identical Courtyard property across the street is different than a Day's Inn across the street. That's why encroachment matters in the hospitality industry. It matters so much it is one of the first things property owners want assurance of, be they huge corporations or mom & pop owned units.

An informed franchise seller would advise his clients to stay away from high franchise turnover brands like Holiday Inn Express and look at a Homewood by Hilton instead. The same franchisee in Virginia may want to look at his mix and re-construct it. Hotel franchises, unlike franchised retail stores and QSRs, have "windows" in their franchise contract of say 3 years and 7 years in which hotel property owners can leave one brand and join another. Even if it has a high occupancy rate, informed consultants know also know that Holiday Inn is lower in economic performance than other concepts. So all hotels that have the same occupancy rate are not the same.

Why does it matter? Say

Why does it matter? Say you have a Hilton Garden, what is going to stop me from opening a Holiday Inn Express, a Courtyard by Marriott, a Comfort Inn & Suites etc all. Great example Springfield Va, there is a Hampton that shares the parking lot with the Comfort Inn. They are owed by the SAME franchisee and the staff runs both establishments. They are across the street from a Hilton, and there is another Hilton 4.7 miles away - all are usually booked solid. There are also several Marriott and other chains etc.

So since you are a consultant

So since you are a consultant specializing in the hotel industry which hotel franchises do you recommend?

Re: Exclusive territory

Stanley -

And yest the great hotel brands are in demand from franchise investors.

You think it's a "ripoff" so what? Who cares what you think anyway?

I suggest you call up Marriott's and Hilton's general counsel and make your complaint known. Let us know how that works out.

Exclusive territory

The best-known hotel franchise companies rarely grant exclusive territories to their franchisees. Since they receive franchise fees on all room revenues, they collect more fees from two hotels operating at 50% each than one operating at 75%. What a ripoff! Stanley Turkel