The existing hotel is Pritax Invest`s first in Sibiu. The group`s other two hotels in the city are the Golden Tulip Ana Tower, inaugurated in 2008, and the Golden Tulip Ana Dome in Cluj-Napoca, inaugurated in 2009. In cases of franchise and management, the parties may agree on an additional service. Most hotel groups offer a range of optional services that meet specific needs throughout the hotel`s life cycle. Compared to the competition, Accor offers a very powerful franchise system that no other operator in Australia could offer us. The general principle of a franchise agreement is that the franchisee operates his own hotel in compliance with the standards of the brand. Christine Ravanat, from AccorHotels, explains how large hotel groups are expanding their network presence through franchise or management agreements, a win-win agreement for hotel groups and owners. Christine Ravanat is an international specialist with strategic and operational experience in the services and travel sector. With 20 years of experience at AccorHotels, she is now Senior VP of the Partners Business Development department. One of his main successes at BtoB is the creation of the Business to Partners division, dedicated to owners of farm and franchised hotels better managed by digital transformation. If the type of agreement chosen is important for the hotel group, it has no impact on customers. Based on the application of the brand`s standards, they enjoy the same experience, whether they are staying in a franchised or managed hotel of the same brand.
According to a 2015 HVS study, the franchise agreement represented a significant part of the portfolio of large hotel chains more than in Europe, as shown in the diagram below. HVS also noted that the franchise agreement will certainly continue to increase for a number of reasons: “Franchising will likely continue to gain traction as a preferred operating model for a number of reasons: large chains have increasingly focused on franchising to achieve the desired pace of expansion; Third parties have proven to be competent in bridging the gap between owners and branded companies. and small independent hotels located on secondary sites are aimed at flexible, less standardized franchisors to remain competitive. So how does an owner choose between a franchise or management agreement? The decision can be made based on many factors, but in general, a franchise agreement is best for an owner who wants to be “practically” involved in the day-to-day operation of their hotel. This person can already be an experienced hotelier. These hotels belong to many different types of owners, wealthy individuals, corporations or even institutions that all want to maximize business from their property. They therefore turn to hotel groups to provide services and support their activities. The new Mercure expands Orbis` portfolio in Eastern Europe to 127 hotels. It will also be part of the group`s plans to expand its presence in Romania. In this case, the hotel group (z.B. AccorHotels) is the franchisee and the hotel owner (z.B. an individual) is the franchisee. You sign a franchise agreement for a specific hotel brand (z.B.
ibis). The franchise agreement is a legal license agreement between the hotel brand and the hotel owner, which grants the hotel owner the rights and obligations to operate the hotel under the franchisee`s brand for a fee. In this scenario, the hotel brand (like Marriott, IHG, Hilton, Accor/SBE) is the manager and the owner of the hotel is the managed owner. They signed a hotel management contract for a specific hotel brand (such as Ritz Carlton, Sofitel). The owner of the hotel bears all the risks of operation. They also require payment of basic fees, branded trademarks, incentive fees, marketing fees, selling and loyalty fees, IT fees, and much more. . . .