DESIGN & DEVELOPMENT
222 | Flying Solo: What it takes to go from franchised to independent
DESIGN & DEVELOPMENT
Independent hotel supply in the U.S. has decreased in the past 10 years, reports STR.
The lodging-data company reports independently owned and operated hotels account for less than 40 percent of all hotels. About 1 percent of those close each year.
But that trend may take a turn.
It appears more and more hoteliers who have grown their companies with franchised brands are considering going independent.
We’re talking about entrepreneurs are converting existing branded properties into non-affiliated hotels.
The franchise contracts are approaching the end, and thanks to the internet, online distribution channels and sophisticated operating and marketing technologies, flying solo is no longer a day dream.
However, before lowering your brand flag, listen to the advice of three hoteliers who either have done it or are planning to do it.
You may discover that franchising is the best model for your business, after all.
In today’s episode, we talk to San Diego hoteliers Bobby Patel of Hotel Investment Group which has nine independent hotels, and Vipul Dayal of VNR Management who is converting a family-owned franchised property and writing a book about it.
We also hear from Timesh Patel of Ohm Culture Hotels in Inglewood, California, who, as he puts it, was “punched in the face” when he transitioned from franchised to independent.
Resources and Links
- Timesh Patel of Ohm Culture Hotels
- Bobby Patel of Hotel Investment Group
- Vipul Dayal
- “From Brand to Boutique: Analyzing Operating Models.” The first chapter is available on Amazon.com.
DESIGN & DEVELOPMENT
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346 | Repositioning For Recovery: Hotel conversions to outpace new builds
Lodging Econometrics has tracked the hotel industry since 1998. Its global database includes new-hotel pipelines as well as renovations and brand conversions. Hotel franchisers once eager to launch new brands are focused on converting existing hotels because it’s a faster way to recover revenue lost to the COVID-19 pandemic than through new construction. In Episode 346, Lodging Leaders explores the increasing number of conversions in the U.S. hotel industry and what owners and operators need to consider before repositioning an asset.
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345 | ‘Rosy View of Future’: Hotel industry sees unleashing of pent-up investor demand
In the first few months of the COVID-19 pandemic in the U.S., financiers anticipated a swell of distressed hotel businesses. Some raised rescue funds to respond to what they thought was a pending crisis. Though there are financial rescues taking place, the level of such activity is far below what industry advisers and fund managers expected. Commercial real estate investors positioned to act in the early days of the pandemic held off and are now just beginning to unleash their cash hoards totaling billions of dollars. Episode 345 of Lodging Leaders podcast explores the state of capital investment in the hotel industry.