Franchising Makes Its Mark On Hotel Sector

June 15, 2006 by Mark | 0 Comments



ACCOR, one of numerous hotel groups to adopt the franchising model, is expanding its franchise activities, to allow owners, usually with smaller properties, to keep operating their properties while enjoying the advantages of external branding, marketing, and reservations.

The major hotel operators like the idea because they get management fees and capital gains from the properties without having to fund the day-to-day running of the businesses.

The Constellation Hotel Group is a big player in hotel franchising via its Country Comfort chain.

Accor Asia Pacific’s managing director, Michael Issenberg, said more than 10 per cent of Accor’s hotels in Australian and New Zealand were franchises and this proportion was expected to increase. Four resort properties have joined the Accor network in one month.

The latest is the Rafferty’s Resort at Lake Macquarie, on the NSW mid-north coast, which will be rebranded Rafferty’s Mercure Resort later this month.

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