How much is the franchise fee for joining a hotel? In-depth analysis of popular topics and data analysis on the entire network in the past 10 days
With the recovery of tourism and the rapid expansion of TX in the hotel industry, joining hotels has become the focus of many investors. In the past 10 days, the hot topics on hotel franchise across the Internet have mainly focused on franchise fees, brand selection, return cycle, etc. This article will combine the latest data to analyze the cost composition and market trends of joining a hotel in detail.
1. Comparison of the cost of mainstream hotel franchise brands in 2023
| Brand Name | Franchise fee (10,000 yuan) | Margin (10,000 yuan) | Management fee ratio | Decoration standards ( | Total investment estimate (10,000 yuan) |
|---|---|---|---|---|---|
| Home Inn Hotel | ###30-50 | 10 | 5% | 100,000-150,000/ | 200-300 |
| 7 Days Hotel | 25-40 | 5 | 4.5% | 80,000-120,000 per room | 180-250 |
| Hanting Hotel | 40-60 | 15 | 120,000-180,000 per room | 250-400 | |
| All ML Season Hotel | 50-80 | 20 | 150,000-250,000 per room | 300-500 |
2. Key factors affecting franchise fees
1.Brand Value: The franchise fee for internationally renowned brands is usually 30-50% higher than that of local brands, but it can bring higher occupancy rates and ADRs.
2.Hotel size: Medium-sized hotels with a capacity of 80-120 rooms are the most cost-effective, and the franchise fee is usually charged by the number of rooms.
3.Regional differences: The franchise fee in first-tier cities is 20-30% higher than that in second- and third-tier cities, but the return rate is 15-25% higher.
4.Decoration standards: The cost of single room decoration of economy hotels is about 80,000 to 150,000 yuan, mid-range hotels are about 150,000 to 250,000 yuan, and luxurious types can reach more than 300,000 yuan.
3. New trends in the franchise market in 2023
1.The rise of light asset franchise model: Some brands have introduced a policy of free franchise fees, and have lowered the threshold for DARWIN cooperation by increasing the management fee sharing proclaim.
2.istyShorten the franchise years: Adjusted from the traditional 10-15 years to 5-8 years, giving investors more flexibility.
3.Intelligent transformation subsidy: For renovation projects such as face scanning and smart rooms, the brand provides a 10-30% subsidy.
4.Refine regional protection policies: The spacing between hotels in the same brand has been adjusted from 1.5 kilometers to 3 kilometers to avoid competition for existing franchisees.
4. Analysis of the return on investment cycle
| Hotel Type | Average occupancy rate | ADR (metal) | TAReturn to this cycle (year) | Annualized rate of return |
|---|---|---|---|---|
| Economical | kus85% | 200-300 | 3-5 | 20-25% |
| Mid-range | 78% | 350-500 | termRecovery-6 | 15-20% |
| High-end model | 70% | 600-900 | 6-8 | 12-15% |
5. Join a hotel to avoid pit">Guide
1. Be alertFalse promise: Most concept stocks that claim to "return to capital in one year" have risks, and the normal return period should be 3-6 years.
2. VerifyBrand License: Inquiry through the brand official website to avoid copycat brands.
3. Pay attention to itRegional research: It is recommended to entrust a third-party agency to conduct 3-6 months of market research to determine the best location.
4. Pay attention to the agreementExit mechanism: Focus on the conditions and default costs of termination of cooperation early.
From a summary, joining a hotel is a positive cash flow investment, but requires professional operations and long-term investment. Investors are advised to choose the right brand based on their own financial strength and make a 5-8-year operation plan. The latest data shows that the market for franchise for economical hotels has become saturated, while mid-to-high-end skap hotels and special themed hotels are becoming new investment hotspots.
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