Best Hotel Franchise Opportunities for 2024
Explore the hotel franchise industry’s dynamic trends, innovative strategies, and the top five franchise opportunities for 2024, highlighting growth, investment, and evolving consumer preferences.
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The hotel industry is a significant contributor to regional economies and to the United States. economy. The industry has grown significantly in the last decade. In 2010, approximately 70% of hotels were franchises, but by 2019 that figure had increased to around 80%. The hotel franchise industry has been a dynamic sector that embraces new opportunities. As consumer preferences and expectations shift, hotels are embracing innovative strategies to stay relevant and provide remarkable guest experiences. In this article, we will discuss the emerging trends in the hotel franchise industry. In addition, we will talk about the 5 best hotel franchises for 2024, ranked by net unit growth. Also, the industry employs approximately 1.35 million throughout around 87,000 businesses in the United States alone.
Hotel Industry Trends
The Hotel Industry continues to change. From the increase in demand for unique experiences to increased service and amenities options, hotels are constantly adapting to keep up with the times. With that said, the public is requesting several new types of hotel experiences, including (but not limited to) increased breakfast options, sustainability, value, and convenience. The solution is for businesses in the industry to innovate together with the trends positioned by the consumers.
Some of the key industry numbers that could give you more insight into the industry are SBA non-franchise business loan data. The following statistics offer valuable information: a paid-in-full rate of 33.8%, a charged off rate of 0.5%, and an SBA loan success ratio of 66:1. The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength. The charged off rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner. For every 13 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
Average Travel & Hospitality Percentage Fees
Royalty Fee |
5.3% |
Marketing Fee |
2.3% |
Standard Travel & Hospitality Franchise Industry Investment |
$3.8M |
Hotel Franchise Review
Franchised hotels are incredibly popular, and their numbers have been steadily increasing over the past few years. In 2014, there were fewer than 27,000 franchised hotels in operation. In 2020, the number has increased to exceed 30,000. Franchised hotels have many benefits, including but not limited to, access to loyalty programs, better global reservation systems, and properties with brand recognition. Many big hotel franchise brands have recently been expanding their geographic footprints to new regions throughout the U.S.
Hotel Franchising Trends
One major trend in the hotel franchise industry is a shift toward the influence of technology and social media in consumers’ hotel and lodging decisions. The hotel franchise industry has been using different modes of advertising to appeal to a larger demographic and has shifted to an overall more technology-based advertising model. Another rising trend comes with the ability to track certain guest preferences and better cater to their needs, particularly concerning communication.
This update will help franchisees cater to individual consumers and can make the process of a hotel stay feel more personal to these consumers.
5 Best Hotel Franchise Opportunities for 2024
Marriott
Total U.S. Locations |
369 |
Net Unit Growth (3 years) |
15 |
Initial Investment |
$95.89M-$158.03M |
Royalty Fees |
To learn more check the FDD |
The Marriot is the best hotel franchise in America and is the largest hotel chain. Offering first-class services and accommodations makes them the best. The franchisee will operate a fully functional hotel under the name Delta Hotels by Marriott. The franchisee will make improvements as required by the Marriott at any given time.
Hilton
Total U.S. Locations |
188 |
Net Unit Growth (3 years) |
7 |
Initial Investment |
$38.91M-$162.51M |
Royalty Fees |
5% |
Hilton is a hotel franchise that has over 570 hotels and 85 resort properties over six continents. The franchise is in some cases an operator from the Hilton company itself. They offer the best leisure and business experience you could have.
InterContinental Hotels & Resorts
Total U.S. Locations |
21 |
Net Unit Growth (3 years) |
-2 |
Initial Investment |
$96.93M-$139.29M |
Royalty Fees |
6% |
InterContinental is one of the best and largest hotel chains in the world, with 203 locations across the US and other countries. They offer their franchisees a loyalty program, a powerful reservation system, and a set of management and marketing teams and tools.
Radisson
Total U.S. Locations |
63 |
Net Unit Growth (3 years) |
-14 |
Initial Investment |
$10.04M-$54.75M |
Royalty Fees |
5% |
Radisson is one of the best hotel franchises and is an international hotel chain, In addition, they are one of the most dynamic hotel groups with more than 1100 hotel brands under their name.
Super 8
Total U.S. Locations |
1468 |
Net Unit Growth (3 years) |
-83 |
Initial Investment |
$4.41M-$5.68M |
Royalty Fees |
6% |
Super 8 by Wyndham offers a variety of benefits for their franchisees such as access to a global reservation system, a training program, and marketing and advertising team support. Super 8 has an outstanding reputation due to its extraordinary service.
Conclusion
In conclusion, the hotel franchise industry is a dynamic industry with several opportunities for aspiring entrepreneurs like you. We hope that this article has helped you understand more about the emerging trends in the hotel industry and, more specifically, in hotel franchises. Additionally, we listed the 5 best hotel franchises as we ranked them by net unit growth.
