How much is the franchise fee for a hotel chain? In-depth analysis of popular topics across the Internet
Recently, hotel chain franchise fees have become a hot topic in the investment field. Especially in the context of the recovery of the tourism market, many entrepreneurs are paying attention to the investment and returns in this industry. This article will combine the hot content of the past 10 days on the Internet to provide you with a detailed analysis of the composition of hotel chain franchise fees, market trends and precautions.
1. Structure of hotel chain franchise fees
Hotel chain franchise fees usually include brand usage fees, decoration fees, management fees, security deposits, etc. The following is a comparison of franchise fees for mainstream hotel chain brands:
| Brand | Franchise fee (10,000 yuan) | Decoration fee (10,000 yuan/room) | Management fee (annual) | Security deposit (10,000 yuan) |
|---|---|---|---|---|
| Home Inn | 30-50 | 8-12 | 5%-8% | 10-20 |
| Hanting Hotel | 25-40 | 7-10 | 4%-7% | 5-15 |
| 7days hotel chain | 20-35 | 6-9 | 3%-6% | 5-10 |
| Jinjiang Inn | 40-60 | 10-15 | 6%-9% | 15-25 |
2. Factors affecting franchise fees
1.Brand influence: Franchise fees for international brands (such as Intercontinental and Marriott) are usually higher than those of domestic brands, but their customer base and premium capabilities are stronger.
2.city level: Franchise fees and decoration costs are higher in first-tier cities, but the rate of return may also be better.
3.Property conditions: Owned properties can reduce rental costs, but they must meet the brand’s site selection standards.
3. Recent hot trends
1.Mid-range hotels are popular: The number of franchise inquiries for mid-range brands such as Atour and All Seasons increased by 30%, with moderate investment thresholds and short return cycles.
2.Green decoration subsidy: Some brands have launched incentive policies for environmentally friendly decoration, and part of the fees can be reduced or reduced if conditions are met.
3.regional cooperation: Franchise fees have been reduced in third- and fourth-tier cities to attract investors from lower-tier markets.
4. Things to note when joining
1. Read the contract terms carefully and clarify the exit mechanism and liquidated damages ratio.
2. Evaluate the brand’s operational support capabilities, such as central reservation system, training system, etc.
3. Calculate the investment return cycle, which generally takes 3-5 years to pay back.
Summary: Franchise fees for hotel chains range from 200,000 to over one million, and must be selected based on brand positioning and market environment. It is recommended that investors conduct on-site inspections of franchised stores and fully communicate with the headquarters before making decisions.
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