Rooms Hotels

Global hotel groups ditch real estate to focus on branding revenues

Excerpt from Hotel News Now

Jun 11, 2013 10:54 am

Skift Take

As hotel groups’ franchised portfolios continue to grow, properties don’t even need to brand themselves with a big name to access chains’ customer bases given the newest wave of demand distribution models.

— Samantha Shankman

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Hotel branding and franchising is quite different today than in the 1950s, when Kemmons Wilson began franchising the Holiday Inn brand across the United States to ensure quality and consistency throughout a family’s summer road trip. The strength of a hotel brand—its importance and what it means to traveling consumers—has ebbed and flowed since.

Many large hotel brands have moved from real estate-based business models to fee-based business models. Many argue the trend began in October 1992…

At the time, Marriott Corporation owned 136 hotels, managed 415 and franchised 195 hotels. As of March 2013, Marriott International owned six hotels, leased 38 hotels, managed 1,021 hotels and franchised 2,571 hotels

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