Search
The Caterer

Hotel franchising set to grow across European hotel brands

09 June 2014 by
Hotel franchising set to grow across European hotel brands

Europe is likely to see the opening of more branded hotels as franchising gathers pace amongst operators, according to a new report from global hotel consultancy HVS.

Although around two-thirds of European hotels currently remain unbranded, it is expected that an increasing recognition of the strength of hotel brands and brand affiliation will encourage the concept to expand.

HVS's report, Hotel Franchising in Europe, outlines the fact that franchising agreements enable rapid expansion for brands entering new markets. The franchises are increasingly operated with the assistance of independent management companies, with the franchisor providing the brand name and marketing platform and the independent management company offering the expertise to manage the hotel.

Sophie Perret, co-author of the report and HVS London director, said: "There is clearly a huge opportunity for growth of branded hotels in Europe, including franchises. A few years ago hotel operators were keener on management contracts. Now, franchise contracts are equally as likely to be proposed to owners by the brands.

Lucy Payne, the report's co-author, added: "Independent management companies have a good track record and are an efficient way to grow brands. Their nimbleness certainly remains a key advantage compared with the heavier corporate structures of established brand operators.

"We don't expect the franchise sector to grow in Europe to the extent it is popular in the US; however, we do expect a significant uplift over forthcoming years."

Around 70% of hotels in the US are branded, half of which are held under franchise agreements.

Hotel franchising - Jumping on the bandwagon >>

Economic recovery boosts value of European hotels >>

Hotels look forward to positive trading in 2014 >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.