HVS and HMM Announce the Hotel Franchise Fee Calculator
Designed to Assist the Hotel Owner and Developer
JULY 14, 2006. HVS International and Hotel & Motel Management have partnered to create a tool that enables hotel and motel owners and developers to conduct a comparative analysis of hotel franchise companies based on the fees they charge. The Hotel Franchise Fee Calculator offers an opportunity to calculate royalty, reservation, marketing, frequent traveler, miscellaneous fees, and more. Second only to payroll, franchise fees represent one of the largest operating expenses for most hotels. Because many of these fees are tied to performance, the more successful a hotel becomes, the more fees it is likely to incur.
HVS International recently published the 2005 Franchise Fees Analysis Guide - a survey of the fee charged by the major hotel franchisors in the economy, mid-rate, and first-class market segments. This guide enables hotel owners to easily compare the total cost of one hotel franchise with that of another. Stephen Rushmore, Zubin Saxena, and Parris Jordan designed and developed the Franchise Fee Calculator. Employees of Questex Media Group created the online version of the Calculator.
HVS International was founded by Stephen Rushmore in 1980 to satisfy a demand for reliable and well-documented hospitality market studies, feasibility reports, and valuations. HVS professionals have written the most widely used college and university texts on hospitality valuation. HVS also produces comprehensive reports, publications and studies. HVS provides its clients with hotel consulting professionals in offices throughout the world. Parris Jordan and Zubin Saxena work in the New York office of the firm.
Hotel & Motel Management, the leading newsmagazine of the lodging industry since 1875, is published 21 times a year. Its experienced staff provides news and analysis to more than 210,000 industry decision makers. Regular sections include technology, hotel operations, special reports, and columns by the industry's leading authorities.
"The purpose of the hotel franchise fee calculator is to provide a comparative analysis of various hotel franchise companies, based on the fees they charge," explains Rushmore. "The selection of an appropriate franchise affiliation affects a property's ability to compete in the local market, generate profits, achieve a certain image or market orientation, and benefit from referral business. Because the success of a hotel is primarily based on the cash flow it generates, owners and lenders must weigh the benefits and services of a national affiliation against the total cost of such a commitment." A total of 89 franchise groups, including 27 economy, 35 mid-rate, and 27 first-class franchisors, participated in the analysis.
The Franchise Fee Calculator can be found at: http://hvs.hotelmotel.com/Intro.asp
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