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Explore Hotel Franchises & Businesses

Hotel Industry

General Industry

The hotel industry is a significant contributor within regional economies and to the United States. economy. The hotel franchise industry has grown significantly in the last decade. In 2010, approximately 70% of hotels were franchises, but by 2019 that figure had increased to around 80%. Although the industry has experienced a decline of 9.9% in the past year due to the coronavirus pandemic limiting travel options, it is expected to bounce back quickly with the increase in travel after COVID-19 becomes less threatening, and the 108-billion-dollar industry has already made strides to improve its standing. The industry employs approximately 1.35 million throughout around 87,000 businesses in the United States alone.

Hotel Industry Trends

Entering a new decade, the Hotel Industry continues to change. From the increase in demand for unique experiences, to increased service and amenities options, hotels are constantly adapting to keep up with the times. With that said, the public is requesting several new types of hotel experiences, including (but not limited to) increased breakfast options, sustainability, value and convenience. The solution is for businesses in the industry to innovate together with the trends positioned by the consumers.

Key Industry Numbers

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Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

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Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

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SBA Loan Success Ratio

For every 13 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

*SBA Loan Data from 2010-2019

*Non-Franchise Businesses taken into account: 10,112 

Hotel Franchise Review

Franchised Hotels are incredibly popular, and their numbers have been steadily increasing over the past few years. In 2014, there were fewer than 27,000 franchised hotels in operation. IN 2020, the number has increased to exceed 30,000.Franchised hotels have many benefits, including but not limited to, access to loyalty programs, better global reservation systems, and properties with brand recognition. Many big hotel franchise brands have recently been expanding their geographic footprints to new regions throughout the U.S.

Hotel Franchising Trends

One major trend in the hotel franchise industry is a shift toward the influence of technology and social media in consumer’s hotel and lodging decisions. The hotel franchise industry has been using different modes of advertising to appeal to a larger demographic and has shifted to an overall more technology-based advertising model. Another rising trend comes with the ability to track certain guest preferences and better cater to their needs, particularly with regards to communication. This update will help franchisees cater to individual consumers and can make the process of a hotel stay feel more personal to these consumers.

Average Travel & Hospitality Percentage Fees

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Royalty Fee
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Marketing Fee

Standard Travel & Hospitality Franchise Industry Investment

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This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 79 franchise concept investment breakdowns in order to calculate this figure.

0 %
Paid-in-Full

The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.

0 %
Charged Off

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.

0 :1
SBA Loan Success Ratio

For every 66 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

*SBA Loan Data from 2010-2019

*Franchise Businesses taken into account: 5,274

Franchise Industries: Free Guides Available

Learn more about the Travel & Hospitality Industry

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