RECR 250 Chapter Notes - Chapter 4: Starwood, Conference And Resort Hotels, Kemmons Wilson
19 Feb 2017
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Hotel development & ownership: billion industry. 5,000,000 guestrooms: flourishes by franchising/mgmnt contracts. Franchising: franchising: allows company to quickly expand by using oth. ppls $ vs. their own financing. Company/franchisor grants certain rights to use tm, signs, op. systems, mktng. I(cid:374) (cid:396)etu(cid:396)(cid:374), f(cid:396)a(cid:374)(cid:272)hisee op. (cid:396)estau(cid:396)a(cid:374)t/hotel i(cid:374) a(cid:272)(cid:272). (cid:449)/f(cid:396)a(cid:374)(cid:272)hiso(cid:396)"s guideli(cid:374)es: began in 1907 w/ritz devel. Howard johnson began franchising his restaurants in 1927: holiday inns = lrgst lodging enterprise in world. Franchised hotels: relationship between hotel companies/franchisees = tense. B/c of fees, services, reservation inspections, maintenance of standards: reason for holiday inn success midpriced range/value they offered, budget motels emerged. Used by commercial travelers/vacationing families: 1960s hilton/sheraton franchise, 2 maj. challenges: Avoidance of financial failure on part of franchisee. Franchising trends: factors propelling franchise growth: Foreign expansion move to increase brand awareness: franchise agreements specific in terms of exterior maintenance/guest service levels. Fees vary acc. to agreements worked out. = 3-4% room rev: lrgst franchisor of hotels = wyndham worldwide.
