Industry Overview
Franchise North America offers Lodging franchises in all regions of the United States. We only offer those franchises for sale that meet our high internal standards of excellence, integrity, and quality.
Some of the most established and well known franchise businesses are in the lodging industry. This is an industry where the power of franchising (i.e., brand recognition, outstanding advertising and marketing, buying power) makes a huge competitive impact. In the United States, tourism is currently the third largest retail industry, behind automotive and food stores. Travel and tourism is the nations largest services export industry, and one of Americas largest employers.
Facts about Lodging franchises*
- The average room rate was $86.24 in 2004up from $82.52 in 2003
- In 2004 only 1% of available rooms were priced under $30; 12% were $30-$44.99; 24% were $45-$59.99; 31% were $60-$85; and 33% were over $85
- 50% traveled for business while 50% traveled for leisure
- During a hotel business stay, 39% of all business travelers spend one night, 24% spend two nights, and 37% spend three or more nights.
- During a leisure stay, 45% spend one night, 28% spend two nights, and 27% spend three or more nights
* American Hotel & Lodging Association
Lifestyle Considerations
- Unless the owner has hotel experience, lodging is typically an investor / absentee owner model; franchisors will recommend a management company or manager to run the property
- Most investors recognize the immediate equity as a result of purchasing real estate and developing a hotel on the property
- Owners should have strong financial acumen or advisors to properly assess the sizeable investment required