DOCSLIB.ORG

Market Feasibility Study Report for the Wolverine Dilworth Hotel 300 E

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

MARKET FEASIBILITY STUDY REPORT FOR THE WOLVERINE DILWORTH HOTEL 300 E. WATER STREET BOYNE CITY, CHARLEVOIX COUNTY, MICHIGAN Date of Report: June 4, 2010 FOR Ms. Elisabeth Knibbe, FAIA Principal Quinn Evans Architects 219 N. Main Street Ann Arbor, Michigan 48104 June 4, 2010 Ms. Elisabeth Knibbe, FAIA Principal Quinn Evans Architects 219 N. Main Street Ann Arbor, Michigan 48104 RE: Wolverine Dilworth Hotel Boyne City, Charlevoix County, Michigan Dear Ms. Knibbe: In fulfillment of our engagement letter, we have completed our study of the market demand and economic feasibility for the proposal to redevelop the Wolverine Dilworth Hotel in Boyne City, Charlevoix County, Michigan. The developer plans to open the hotel as a 29-unit property with two restaurants and meeting space. The property is located at 300 E. Water Street. The consultants have prepared more than 1,000 similar studies over the past 20 years with various firms. The study is based upon market conditions observed as of the date of our market inspection on May 19, 2010 and research conducted in May and June, 2010. Assumptions The conclusions contained in this report are based upon a review of information provided by you, Landmark Development, and on-site field work in the market area that is described in the Scope of Assignment section. As in all studies of this type, the conclusions reached do not take into account, or make provisions for, the effect of any sharp rise or decline in local or general economic conditions not presently foreseeable. The estimated results are based on competent and efficient management of the proposed hotel, as well as an aggressive marketing program prior to and after the opening of the proposed hotel. We assume the subject will hire appropriate management personnel to operate and market the hotel. We assume that the subject will operate as a branded hotel affiliated with the Ascend Collection by Choice Hotels or similar quality brand. We assume the proposed hotel will open January 1, 2012. We presume no significant change in the competitive position of the hotel industry in the area from that as set forth in this report. We do not warrant that the estimates will be attained, but they have been conscientiously prepared on the basis of information obtained and our experience in the hotel industry. It is expressly understood that the scope of this study and the report thereon do not include the possible impact of zoning regulations, licensing requirements, or other restrictions concerning the project, except where such matters have been brought to our attention and that are set forth in this report. This report and its contents are intended solely for the information of our client for internal use relative to determining the feasibility of the project. The report should not be relied upon for any other purpose. Otherwise, neither our report nor any of its contents nor any reference to Hotel & Leisure Advisors, LLC (H&LA) may be included or quoted in 14805 Detroit Avenue, Suite 420 • Cleveland, OH 44107 • 216-228-7000 • Fax: 216-228-7320 • www.hladvisors.com Ms. Elisabeth Knibbe, FAIA June 4, 2010 Page 2 any document, offering circular, registration statement, prospectus, sales brochure, other appraisal, or other agreement without our prior written approval. Such permission will not be unreasonably withheld. We are available to perform additional consulting services on this proposed property as the scope of the development is finalized. In addition, we are available to perform a self- contained full narrative appraisal report, economic impact study, or management company analysis for the proposed development upon your request. We are also available to provide asset management services to the client if the hotel is developed. We appreciate the opportunity to be of service to your organization and look forward to working with you again. Respectfully submitted, Hotel & Leisure Advisors, LLC David J. Sangree, MAI, ISHC President Joseph Pierce Senior Associate MARKET FEASIBILITY STUDY REPORT FOR THE WOLVERINE DILWORTH HOTEL 300 E. WATER STREET BOYNE CITY, CHARLEVOIX COUNTY, MICHIGAN TABLE OF CONTENTS A. INTRODUCTION Scope of the Assignment ......................................................................... A-1 Executive Summary ................................................................................ A-2 Standard Conditions ............................................................................... A-7 Extraordinary Assumptions and Hypothetical Conditions .............................. A-10 Competency of the Consultants ................................................................ A-10 B. AREA ANALYSIS AND DESCRIPTIVE DATA Area Review .......................................................................................... B-1 Neighborhood Analysis ............................................................................ B-15 Site Analysis .......................................................................................... B-20 Description of Projected/Recommended Improvements ............................... B-25 Franchise Affiliation Analysis .................................................................... B-29 Municipal Incentives ............................................................................... B-30 C. MARKET ANALYSIS National Lodging Overview ...................................................................... C-1 Michigan Lodging Overview ...................................................................... C-8 Comparable Lodging Market Overview ....................................................... C-10 Projected Market Occupancy .................................................................... C-22 Demand Interviews ................................................................................ C-23 D. SUBJECT OCCUPANCY AND AVERAGE DAILY RATE ANALYSIS Competitive Advantages and Disadvantages of Subject Property ................... D-1 Projected Subject Occupancy ................................................................... D-2 Estimated Average Daily Rate .................................................................. D-7 E. FINANCIAL ANALYSIS Introduction .......................................................................................... E-1 Income and Expense Analysis .................................................................. E-3 Prospective Financial Analysis in Inflated Dollars ......................................... E-15 F. CERTIFICATION ......................................................................................... F-1 ADDENDA Qualifications ............................................................................ Addendum I Smith Travel Research Report ..................................................... Addendum II Building Plans and Site Plans ...................................................... Addendum III Demand Interviews Survey Form ................................................. Addendum IV Wolverine Dilworth Hotel Introduction A-1 SCOPE OF THE ASSIGNMENT Hotel & Leisure Advisors, LLC has been retained by Ms. Elisabeth Knibbe, FAIA with Quinn Evans Architects to estimate the potential market feasibility of the redevelopment of the Wolverine Dilworth Hotel in Boyne City. We made a number of independent investigations and analyses in performing this study. We evaluated the subject site and its relationship to potential demand generators as well as its attributes relative to the lodging competitors. We interviewed representatives of the Convention and Visitors Bureau, Chamber of Commerce, and assessor’s office, as well as, city officials, county officials, and economic development officials to collect information concerning the proposed site and region. We interviewed managers or owners of existing and proposed competitive hotel or resort properties. We interviewed representatives of various hotel chains to determine performance of area hotels and proposed new supply additions. We interviewed representatives of area attractions to determine usage and new supply additions. We have conducted demand interviews with various potential users of the proposed facility. In conducting our investigation and analysis, we relied on data retained in our office that is updated regularly for use in all assignments. Various agencies and databases, including the Site to Do Business database, were contacted for demographic data, land use policies and trends, growth estimates, and employment data. Neighborhood data was supplemented by a physical inspection of the subject property and the area. The subject property data considered in our analysis was provided by Ms. Elisabeth Knibbe, FAIA and Landmark Development. In addition to the subject's specific information, we have considered relevant market data in determining the projections used in our cash flow analysis. The financial analysis was based primarily upon the probable operating experience of the property relative to gross operating revenues, typical expense levels, and resultant net cash flow. Estimates of operating revenues were based upon market data relative to industry standards and comparable properties in the subject area. Expense levels were estimated based upon industry standards and operating histories of similar properties. We have estimated the financial projections for the subject facility for the year beginning January 1, 2012 for 11 years. Wolverine Dilworth Hotel Introduction A-2 EXECUTIVE SUMMARY The following chart profiles our recommendations for the Wolverine Dilworth
Recommended publications
  • Cornell Alumni News

    Cornell Alumni News

    Cornell Alumni News Volume 46, Number 22 May I 5, I 944 Price 20 Cents Ezra Cornell at Age of Twenty-one (See First Page Inside) Class Reunions Will 25e Different This Year! While the War lasts, Bonded Reunions will take the place of the usual class pilgrimages to Ithaca in June. But when the War is won, all Classes will come back to register again in Barton Hall for a mammoth Victory Homecoming and to celebrate Cornell's Seventy-fifth Anniversary. Help Your Class Celebrate Its Bonded Reunion The Plan is Simple—Instead of coming to your Class Reunion in Ithaca this June, use the money your trip would cost to purchase Series F War Savings Bonds in the name of "Cornell University, A Corporation, Ithaca, N. Y." Series F Bonds of $25 denomination cost $18.50 at any bank or post office. The Bonds you send will be credited to your Class in the 1943-44 Alumni Fund, which closes June 30. They will release cash to help Cornell through the difficult war year ahead. By your participation in Bonded Reunions: America's War Effort Is Speeded Cornell's War Effort Is Aided Transportation Loads Are Eased Campus Facilities ^re Saved Your Class Fund Is Increased Cornell's War-to-peace Conversion Your Money Does Double Duty Is Assured Send your Bonded Reunion War Bonds to Cornell Alumni Fund Council, 3 East Avenue, Ithaca, N. Y. Cornell Association of Class Secretaries Please mention the CORNELL ALUMNI NEWS Volume 46, Number 22 May 15, 1944 Price, 20 Cents CORNELL ALUMNI NEWS Subscription price $4 a year.
  • 2018 Hotel Brand Reputation Rankings: USA & Canada

    2018 Hotel Brand Reputation Rankings: USA & Canada

    REPORT 2018 Hotel Brand Reputation Rankings: USA & Canada October 2018 INDEX Introduction 4 Methodology 6 The Importance of Brand Reputation 7 Key Data Points: All Chain Scales 8 Key Findings 9 Summary of Top Performers 10 ECONOMY BRANDS Overview 13 Top 25 Branded Economy Hotels 14 Economy Brand Ranking 15 Economy Brand Ranking by Improvement 16 Economy Brand Ranking by Service 17 Economy Brand Ranking by Value 18 Economy Brand Ranking by Rooms 19 Economy Brand Ranking by Cleanliness 20 Review Sources: Economy Brands 21 Country Indexes: Economy Brands 22 Response Rates: Economy Brands 22 Semantic Mentions: Economy Brands 23 MIDSCALE BRANDS Overview 24 Top 25 Branded Midscale Hotels 25 Midscale Brand Ranking 26 Midscale Brand Ranking by Improvement 27 Midscale Brand Ranking by Service 28 Midscale Brand Ranking by Value 29 Midscale Brand Ranking by Rooms 30 Midscale Brand Ranking by Cleanliness 31 Review Sources: Midscale Brands 32 Country Indexes: Midscale Brands 33 Response Rates: Midscale Brands 33 Semantic Mentions: Midscale Brands 34 UPPER MIDSCALE BRANDS Overview 35 Top 25 Branded Upper Midscale Hotels 36 Upper Midscale Brand Ranking 37 Upper Midscale Brand Ranking by Improvement 38 Upper Midscale Brand Ranking by Service 39 Upper Midscale Brand Ranking by Value 40 Upper Midscale Brand Ranking by Rooms 41 Upper Midscale Brand Ranking by Cleanliness 42 Review Sources: Upper Midscale Brands 43 Country Indexes: Upper Midscale Brands 44 Response Rates: Upper Midscale Brands 44 Semantic Mentions: Upper Midscale Brands 45 Index www.reviewpro.com
  • Hotel Brand Conversions

    Hotel Brand Conversions

    Hotel Brand Conversions: What Works and What Doesn’t by Chekitan S. Dev EXECUTIVE SUMMARY s many as one-third of U.S. hotels have been converted from one brand to another in recent years, a process that frequently improves the hotel’s financial performance—although that is not always the case. Using data collected between 1994 and 2012 from PKF Hospitality Research, an analysis of brand conversions by 260 hotels shows that hotels moving downscale generallyA improved their occupancy, and thus their top-line revenue and profit ratios, compared to a control group of 2,750 hotels that did not change brands. However, hotels that moved upscale did not see notable changes in revenue or profit, nor did hotels that moved across their tier, especially when they stayed within their brand family. Two factors seem to drive the financial results for converted hotels—the relative strength of the brand and the fit between the brand and the property. Cornell Hospitality Report • November 2015 • www.chr.cornell.edu • Vol. 15, No. 21 1 ABOUT THE AUTHOR Chekitan S. Dev, Ph.D., is associate professor of strategic marketing and brand management at the School of Hotel Administration. Recognized as a leading authority on strategic marketing and brand management, His award-winning research has been published in several peer reviewed journals, including the Journal of Marketing and Harvard Business Review. He has won all major hospitality research awards including the 2002 John Wiley & Sons award for lifetime contribution to hospitality and tourism research. Additionally, he has received several teaching excellence awards. A former corporate executive with Oberoi Hotels & Resorts, he has served corporate, government, education, advisory and private equity clients in over 35 countries on five continents as consultant, seminar leader and expert witness.
  • M&A Beyond Borders a Recent History of the European Hospitality Industry

    M&A Beyond Borders a Recent History of the European Hospitality Industry

    M&A beyond borders A recent history of the European hospitality industry Mandarin Oriental Munich Suite View Table of Content 1. AHV Associates 2 2. Executive summary 5 3. M&A supportive trends and characteristics of the hospitality industry 6 4. A sample of indicative cross-border transactions 10 5. An overview of the M&A participants’ strategic goals 13 6. Innovative M&A structures 16 7. Relevant M&A stats 18 8. List of cross-border transactions 19 1 AHV Associates An introduction Founded in 2001 by Andrew Harrington and Hanif Virji, AHV Associates LLP (AHV) is an award winning boutique investment bank focused on advising private companies across a range of M&A and advisory assignments. AHV Associates LLP Mergers & Board Advisory Capital Raising Acquisitions Andrew Harrington, AHV co-founder Andrew co-founded AHV in 2001. During his career at ▪ Buy-side advisory ▪ Strategic Options ▪ Real Estate Finance Salomon Brothers, Andrew was rated as the number one ▪ Company Sales Assessment ▪ Corporate Debt & sector analyst globally in all the major corporate and ▪ JVs ▪ Independent Equity institutional investor surveys. He was responsible for many ▪ MBO Valuations ▪ Acquisition Finance successful capital raising exercises for numerous ▪ Dev/Exp Capital companies. Andrew started in investment banking at Barclays de Zoete Wedd in 1988. In 1998, Andrew founded a telecoms company, providing telecommunications services to residential and business AHV specializes in hospitality and has worked with companies that own and/or operate hotels, apart- customers. He successfully grew the company to £25 million hotels, serviced apartments, hostels and mixed-use resorts in revenues, and over 60,000 customers by the end of 2000.
  • 2009 U.S. Hotel Franchise Fee Guide

    2009 U.S. Hotel Franchise Fee Guide

    2009 U.S. Hotel Franchise Fee Guide Stephen Rushmore, MAI, FRICS, CHA Kelly Fitzpatrick Teresa Lam HVS 369 Willis Avenue Mineola, New York 11501 516-248-8828 – Phone 516-724-3059 – Fax U.S. $750 www.hvs.com New York San Francisco Boulder Denver Miami Dallas Chicago Washington DC Atlanta Boston Newport RI Vancouver Toronto London Madrid Athens New Delhi Mumbai Singapore Hong Kong Shanghai São Paulo Buenos Aires Mexico City HVS, Mineola, New York 2009 U.S. Hotel Franchise Fee Guide 1 2009 U.S. Hotel Franchise Fee Guide The purpose of this U.S. Hotel Franchise Fee Guide, prepared by HVS, is to provide a comparative review of various hotel franchise brands based on the applicable franchise fees. 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 based primarily on the cash flows it generates, owners and lenders must weigh the benefits of a brand affiliation against the total cost of such a commitment. We note that the fees outlined herein apply only to hotels operating in the United States. Types of Hotel Brand attributes play a crucial role in an investor’s decision to acquire or Franchise Fees change a franchise affiliation. When evaluating a potential hotel franchise, one of the important economic considerations is the structure and amount of the franchise fees. Second only to payroll, franchise fees represent one of the largest operating expenses for most hotels.
  • Biennial Headquarters Hotel

    Biennial Headquarters Hotel

    BIENNIAL HEADQUARTERS HOTEL Omni Houston Hotel Four Riverway, Houston, TX 77056 713-871-8181 FotoFest Rate: $159.00 + tax *Please use the code FotoFest Participants when making reservations OTHER HOTELS NEAR THE OMNI HOUSTON HOTEL (Listed in order of proximity) The Houstonian Hotel (1.0 mi from Omni Houston Hotel) 111 N. Post Oak Ln, Houston, TX 77024 (713) 680-2626 Hotel Granduca Houston (1.2 mi from Omni Houston Hotel) 1080 Uptown Park Blvd, Houston, TX 77056 (713) 418-1000 Houston Marriott West Loop by the Galleria (1.4 mi from Omni Houston Hotel) 1750 West Loop S, Houston, TX 77027 (713) 960-0111 Hilton Houston Post Oak (1.5 mi from Omni Houston Hotel) 2001 Post Oak Blvd, Houston, TX 77056 (713) 961-9300 Hampton Inn Houston (1.6 mi from Omni Houston Hotel) 4500 Post Oak Pkwy, Houston, TX 77027 (713) 871-9911 Residence Inn by Marriott Houston by the Galleria (1.6 mi from Omni Houston Hotel) 2500 McCue Rd, Houston, TX 77056 (713) 840-9757 1 | P a g e La Quinta Inn & Suites (1.7 mi from Omni Houston Hotel) 1625 West Loop S, Houston, TX 77027 (713) 355-3440 Royal Sonesta Hotel (1.7 mi from Omni Houston Hotel) 2222 West Loop S, Houston, TX 77027 (713) 627-7600 Extended Stay America Hotel Houston (1.8 mi from Omni Houston Hotel) 2300 West Loop S, Houston, TX 77027 (713) 960-9660 Sheraton Suites Houston Near The Galleria (1.8 mi from Omni Houston Hotel) 2400 West Loop S, Houston, TX 77027 (713) 586-2444 Luxe Life Hotel (1.8 mi from Omni Houston Hotel) 4444 Westheimer Rd Suite D321, Houston, TX 77027 (832) 776-8984 The St.
  • Proposed Downtown Berryville Hotel

    Proposed Downtown Berryville Hotel

    Proposed Downtown Berryville Hotel Berryville, Virginia 22611-1315 NKF Job No.: 19-0004412 Feasibility Study Prepared For: Mr. Nathan Stalvey President Berryville Main Street 23 East Main Street Berryville, VA 22611-1315 Prepared By: Newmark Knight Frank Hospitality, Gaming & Leisure Group Valuation & Advisory 1350 Euclid Avenue, Suite 300 Cleveland, OH 44115 1350 Euclid Avenue, Suite 300 Cleveland, OH 44115 July 19, 2019 Mr. Nathan Stalvey President Berryville Main Street 23 East Main Street Berryville, VA 22611-1315 RE: Feasibility Study of a Proposed Downtown Berryville Hotel Downtown Berryville , Berryville, Virginia NKF Job No.: 19-0004412 Newmark Knight Frank Valuation & Advisory, LLC has prepared a feasibility study of the referenced property in the following report. Summary of the Proposed Subject Property The feasibility study considers development of a proposed hotel in Downtown Berryville on or proximate to Main Street. The subject site has average access to major roadway (State Route 7) because of its proposed location in downtown Berryville's Main Street district, limiting its visibility and ease of ingress and egress from a major roadway. While the proposed site is proximate to some demand generators, the low density of commercial developments in the area is projected to be a weakness. Leisure attractions in Berryville and Clarke County including vineyards, historic manors and event venues, and Barns of Rose Hill will help mitigate this weakness. Visibility is considered to be average, relative to other historic downtown locations, due to its proposed multi- level configuration, assumed signage, and on or proximate to Main Street. State Route 7, which connects Berryville to neighboring Winchester and Leesburg, is less than a mile north from central downtown.
  • Back INN Style?

    Back INN Style?

    HYLodging2002.qxd 1/16/02 12:54 PM Page 3 High Yield Lodging Research January 2002 High Yield Lodging Outlook 2002 Back INN Style? Jason N. Ader (212) 272-4257 Jason M. Kroll CFA (212) 272-9621 Trip McCoy (212) 272-8821 High Yield Lodging Outlook 2002 January 18, 2002 Table of Contents Investment Thesis .............................................................................................. 4 Is the Lodging Industry Poised for a Turnaround?.................................................... 5 What is the Credit Outlook?................................................................................ 10 How Are Current Trends? ................................................................................... 13 Relative Value Analysis...................................................................................... 15 Company Updates Boca Resorts, Inc.............................................................................................. 17 Extended Stay America, Inc................................................................................. 24 FelCor Lodging Trust .......................................................................................... 34 Host Marriott, LP .............................................................................................. 45 MeriStar Hospitality Corp. ................................................................................... 56 Prime Hospitality Corp........................................................................................ 66 Starwood Hotels & Resorts
  • Annual Report 2020

    Annual Report 2020

    GERMAN NATIONAL TOURIST BOARD Annual Report 2020 CRISIS • DIGITALISATION • MARKET ANALYSES • VOLATILITY FLEXIBILITY • IMAGE • DISRUPTION • AI APPLICATIONS OUTLOOK • EMPATHY • RECOVERY • SUSTAINABILITY SOCIAL MEDIA • PROFESSIONALISM • CAMPAIGNS • TRENDS DESIRE TO TRAVEL IS RISING OF EUROPEANS* plan to travel 54 % in the next six months PEOPLE INTERESTED IN CITY LIFE AND URBAN EXPERIENCES are the most eager to travel in the next six months Source: Monitoring Sentiment for Domestic and Intra-European Travel, wave 5 (European Travel Commission, February 2021, CONTENTS survey period December 2020 / January 2021); *52 per cent of Europeans in the survey period November / December 2020 A message from the Executive Board 4 A message from the Federal Government Commissioner for Tourism 6 A message from the President of the Board of Directors 8 Editorial: Petra Hedorfer 10 The German National Tourist Board 15 Remit 16 Objectives 18 Network 20 Awards 22 Inbound tourism today – Politicians 24 The GNTB as a networking platform and source of expertise 29 Digital strategy 30 Corporate communications 36 International markets 38 Inbound tourism today – Hotel industry 44 Inbound tourism today – Transport 48 Inbound tourism today – Tourism partners 52 GNTB campaigns for Destination Germany 55 Brand strategy 56 Empathy campaigns 57 International marketing 62 A look ahead to 2021 72 The regions’ take on inbound tourism 74 The international source markets 79 Organisation, facts and figures 97 Administration 98 GNTB members, sponsors and partners 104 Organisation and structure 108 Production credits 115 Saarland, view of the Moderne Galerie in Saarbrücken 3 A MESSAGE FROM THE EXECUTIVE BOARD EMERGING STRONGER FROM THE CRISIS DEAR FRIENDS AND COLLEAGUES, VALUED PARTNERS IN THE GERMAN TOURISM INDUSTRY, Global tourism, which for decades has been both a driver that the desire to travel is as strong as ever, and the target and a reflection of global economic growth, suffered a se- group of people who enjoy city life, a particularly important vere setback in 2020.
  • Lodging Feasibility Study

    Lodging Feasibility Study

    Payette, ID Lodging Feasibility Study For more information regarding this report, contact: [email protected] [email protected] Table of Contents Introduction/Objective …………………………………………………..…………………………………………….3 Executive Summary …………………………………………………………………………………………………………………………4-10 Property Segment Property Size Room Rate Property Features, Amenities, and Services Recommended Sleeping Room Configuration Economic Impact Potential Lodging Demand Analysis Ramp Up Year Projections 1-5 Year Projection Market Demand Area SWOT: Community Feedback Site Analysis ………………………………………………………………………………………………………………………….11-16 Development Sites & Maps AADT - Annual Average Daily Traffic Economic Overview ……………………………………………………………………………………………………………17-20 Population Effective Buying Income Workforce/Employment Distribution Unemployment/Labor Supply/Wage Pressures Transportation Information Lodging Demand …………………………………………………………………………………………………………………..21-30 Market Segmentation Events and Attractions Community Interviews Lodging Supply ……………………………………………………………………………………………………………………..31-50 Competitive Hotel Properties Peak and Low Season Projected Average Daily Room Rate & Positioning Historical and Projected Market Performance Local and Competitive Set Surveyed Lodging Details STRDRAFT Data Trends & STR Chain Scales Hotel Market Feasibility Study Introduction Payette, ID The following Comprehensive Lodging Feasibility Study Report will review the potential development of a hotel in Payette, ID. Core Distinction Group LLC (CDG) has been
  • Hotel Franchise Fee Guide

    Hotel Franchise Fee Guide

    APRIL 2011 | PRICE $750 2011 UNITED STATES HOTEL FRANCHISE FEE GUIDE Stephen Rushmore, MAI, FRICS, CHA President & Founder Michael L. Mele Consulting & Valuation Analyst Chu Y. Xu Consulting & Valuation Analyst www.hvs.com HVS Global Hospitality Services | 369 Willis Avenue, Mineola, NY 11501, USA 2011 U.S. Hotel Franchise Fee Guide The purpose of this U.S. Hotel Franchise Fee Guide, prepared by HVS, is to provide a comparative review of various hotel franchise brands based on the applicable franchise fees. 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 based primarily on the cash flows it generates, owners and lenders must weigh the benefits of a brand affiliation against the total cost of such a commitment. We note that the fees outlined herein apply only to hotels operating in the United States. Types of Hotel Franchise Fees Brand attributes play a crucial role in an investor’s decision to acquire or change a franchise affiliation. When evaluating a potential hotel franchise, one of the important economic considerations is the structure and amount of the franchise fees. Second only to payroll, franchise fees represent one of the largest operating expenses for most hotels. Hotel franchise fees are compensation paid by the franchisee to the franchisor for the use of the brand’s name, logo, goodwill, marketing, and referral and reservation systems. Franchise fees normally include an initial fee with the franchise application, plus continuing fees paid periodically throughout the term of the agreement.
  • Hotel Chain Development Pipelines in Africa 2020 Report

    Hotel Chain Development Pipelines in Africa 2020 Report

    2020 Hotel Chain Development Pipelines in Africa Front Page: Taj Cape Town Somerset Kilimani Nairobi 2 Hotel Chain Development Pipelines in Africa 2020 Foreword Our 12th edition of the Hotel Chain Development Pipelines in Africa brings news of a continuing increase in the chains’ development activity in Africa. The pipeline now sits at 77,896 rooms in 408 hotels, up 3.6 per cent on 2019. Looking back to our first report on Africa’s hotel development pipeline in 2009, there were then just under 30,000 rooms, so today we’re not far off three times that! The growth of the chains’ presence and pipeline in Africa has been an incredibly positive story, and we are proud to be deeply involved with it – in addition to the research work carried out for this report, we have provided professional advice to several of the projects that are included in the data. However, I am writing this foreword (and you are probably reading it) at a time of unprecedented global upheaval, a complete reset. Our industry – and I mean travel and tourism in the widest sense – has been particularly badly affected by the COVID-19 disease. We in the hotel industry have been completely reset, to what we just don’t know yet, but to a state smaller in terms both of supply and demand than we were just a few months ago, that’s for certain. There’s a new game coming when this is all over, and no one yet has any idea what we will be playing with, nor what the rules will be.