Profit from the Global Tourism Boom with Top Hotel Brands

Hotel franchises represent a great way to take advantage of the growth in international travel and tourism while enjoying a steady, fulfilling business. And now it’s more affordable than ever. You too could profit from the global tourism boom.

If you’ve traveled on business or pleasure recently, the chances are excellent that you stayed at a Wyndham Hotel Group hotel. Wyndham Hotel Group represents 12 well-known hotel brands under its global umbrella including Wyndham Hotels & Resorts®, TRYP by Wyndham®, Wingate by Wyndham®, Ramada®, Days Inn®,Super 8®, Baymont Inn & Suites®, Microtel Inns & Suites by Wyndham®, Hawthorn Suites by Wyndham®, Howard Johnson®, Travelodge®, and Knights Inn® 
hotels.  “We are a global company in 71 countries with over 7500 hotels,” says Gus Stamoutsos – EVP Franchise Development for Wyndham Hotel Group. “We’re the largest in the industry.”

The US Lodging Industry: $162 billion and growing

The lodging industry is a global powerhouse, accounting for nearly 10% of global GDP, and nearly a third of that is in the United States, and experts see continued growth ahead with the boom in international travel. The statistics for the U.S. market are especially impressive coming out of the recession.

• $162 billion in sales
• $58 billion in profit
• 5.4% revenue growth 2012 vs. 2011
• 10% growth in profits 2012 vs. 2011
• Double-digit revenue growth through 2015 

Sources: STR Global & PFK Hospitality Research

The Wyndham Hotel Group Model

Most of Wyndham’s Hotel Group’s hotels are operated by franchisees. This means that there are a great many entrepreneurs and investors —of all nationalities and descriptions —who are enjoying the financial benefits of Wyndham Hotel Group’s strong brands and operating expertise.

“Hotel franchises are not low-cost investments, but your return on investment can be huge.” — Mary Tomzack

Return on Investment (ROI)

Although it’s hard to get precise figures for return on investment, there are vocal advocates for the ROI of hotel franchises, such as franchise expert Mary Tomzack. In her article, “Reasons to Invest in Hotel Industry Franchises,” Tomzack wrote ”

hotel franchises are not low-cost investments, but your return on investment can be huge.”  Blue MauMau, a website that covers the franchise industry also notes that hotels typically pay back their business loans earlier than other franchises for the following reasons:

• Growth of Global tourism
• Hotel property values are continuing to rise
• Franchisees typically own the real estate on which their hotels are built giving them a significant asset, which often grows in value quite apart from the business itself.

There are many factors contributing to how well any franchise operation will perform, not the least of which is the skill and experience of the management team. Other considerations include geographic and demographic profiles of the business location, and the marketing program. To get a complete perspective on earnings potential, you must request and carefully read the Franchise Disclosure Document, paying close attention to Item 19, which if available, will give you an idea of how other franchisees have done. However, no financial representations of past performance will ever predict how your franchise will perform. So, as with any business proposition, you must do your homework.

Find out how you can own a Wyndham Hotel franchise. Apply Today!

What does Wyndham Hotel Group look for in a potential franchisee?

1. Commitment. Wyndham Hotel Group wants to work with people that are not just looking for short-term opportunities, but are actually committed to the hotel industry and its growth potential. Of course not everyone wants to own and operate his or her hotel on a day-to-day basis. Sometimes the franchisee is a company which wants to add hotels to its real estate portfolio, or even a real estate investment trust (REIT) who employs a third party management company to operate its holdings.
2. Financial Strength. Franchisees, whether individuals or  consortia, must have the economic strength to satisfy the requirements needed for each brand. Some Wyndham Hotel Group brands, such as Super 8, are what is called “limited service” and offer fewer amenities. These brands require less investment, making them a good choice for many investors new to the industry.
3. Experience. If you’re just getting started in the industry, it’s probably going to be as an operator of a limited service hotel, and Wyndham Hotel Group’s extensive training programs will help get you up to speed. However, at the level of full service hotels, you must have experience in the hotel business if you plan to operate the franchise yourself. Otherwise, you must have a third party management company in place to operate the franchise.

Franchise Support

1. Financing. While the responsibility for financing belongs to the franchisee, Wyndham Hotel Group, like most franchisors, is associated with various companies that have a history of lending within its industry and can provide the requisite introductions.
2. Training. Wyndham Worldwide University’s School of Hospitality Operations offers a comprehensive training program to help franchisees run their business. The program begins with RightSTART GM, a 3-day program that acquaints the franchisee with the tools and resources available to help them make the most of their new business.  Also, there are regional training workshops year round, focusing on hotel operations, customer service, sales and marketing, and brand programs. Online training is provided through WynWeb, a company intranet. Customized training programs are available as well.
3. Marketing Wyndham Hotel Group offers the services of its global sales department, which helps to secure contracts with large companies for rooms at its franchised hotels. Wyndham Hotel Group’s loyalty program, Wyndham Rewards, also helps drive repeat business. For smaller hotels, the corporate reservations desk books rooms for more modest traveling groups such as sports teams, and fraternal organizations, which may require only ten or fifteen rooms.
4. Strategic Sourcing Wyndham Worldwide’s Strategic Sourcing Department works to lower the operating costs of its franchisees by leveraging the combined purchasing power of its entire operation, which includes not only the Wyndham Hotel Group but its timeshare exchange and rental business as well. The products sourced typically include bedding, towels, furniture, and office supplies. The end result is not only lower costs for franchisees, but higher quality products and services for guests as well.

Click here to find out how you can own a Wyndham Hotel Group Franchise

Advice for Immigrant Entrepreneurs

When we asked him what advice he’d give new franchises, Stamoutsos stressed the following  points:

• Have sufficient operating capital. “Many people try to do things with a minimum of capital and then rely on cash flow to handle other capital expenses,” says Stamoutsos. “That’s a mistake; you’ve got to make sure that you’re well capitalized and have the resources to take advantage of full training and complete all your brand standards.”
• Have capital reserves for contingencies. “No one plans on a bad winter. No one plans on construction going on outside your business that takes traffic away from your business for two or three months. No one expects a major repair, such as an air conditioning unit or a heating system that breaks. There are all these different elements to any business that you have to plan for.”
• Use your toolbox to full advantage. “We’re going to give you a tool box that gives you different ways to help drive customers through your doors. If you take advantage of every one of those, the ability to be successful increases tremendously versus not doing that.”
• Be Humble. “If you’re coming into the business for the first time, you have to be a little humble, recognizing that you don’t have all the answers, regardless of your success in other businesses.”