Wednesday, January 25, 2017

Hotels: How do I determine which hotel franchise to choose?

I'd have to know the precise location you have in mind before I could go with anything more than a broad-strokes recommendation; but if I were your partner on this venture, or if I were advising you as your prospective management company, I'd say -- between the options you've been given -- give IHG another call. A Holiday Inn Express or Candlewood would be your best bet, if you have to mess with a franchise at all. Their salespeople do play games, but still . . .

Image result for vintage holiday inn

(I assume you're dealing with a lender requirement that you have a franchise: otherwise, I'd suggest a more boutique property, if you have any hotel management experience at all. And don't do anything until you give Best Western a call. It could be that there's another one close to your planned location - did you not call Hampton Inn for that reason? -- and the same would go for any other franchise. But Holiday Inn would always be among my own preferences, if it could be had, at least for another twenty or so years anyway until hotel franchising dies completely. If your location is that good, and you don't put one there, eventually someone else will. I never advise first time owners to go independent, but eventually that's going to change: a franchise offers little to no assurance that it'll help you more than it'll cost you, and that's not going to get any better.)

If you must go with one of the others, I'd probably go with LaQuinta. As a fifth choice (fourth among those you provided), go with Choice, but make it a Sleep Inn, not a MainStay, and not a dual-branded Sleep Inn/MainStay. MainStay is a loser, and hooking it up with a winner - Sleep Inn, as of now, the best brand Choice has left - is as likely to drag down the winner as it is to help the loser. (Is Comfort Suites not an option?)


But in your area, before I'd go with LaQuinta, I'd take a look at Red Lion (http://www.redlion.com/ | http://franchise.redlion.com/ ). They just acquired GuestHouse, which has a little more strength in your area, and a more widespread presence across the country (although GuestHouse is a slightly more downscale brand); and doing this caused Red Lion to double in size.  (Even without the GuestHouse expansion, you're on the eastern edge of their area: there's a Red Lion in Denver, and I wish we'd put one in Lubbock, Texas rather than going with Cobblestone Hotels) They're serious about expanding, they have all the pieces in place, they have people running it who know what they're doing, they're serious about supporting their hotels; and while they haven't had a new construction property in some years (most all of their current ones are conversions), they all look very nice. I'd love nothing more than to put one near each of the major Northeastern cities while the opportunity is there. 



Red Lion's days as a regional chain are numbered: I suspect in ten years, it'll be nationwide.

I still wouldn't touch Country Inn and Suites, or any other Carlson brand, with a ten foot pole. (Notice how that slick, modern prototype they have now looks anything but 'country'? Those people are getting desperate.) 



And unless you currently own no fewer than three successful franchised properties in pristine condition, Marriott won't touch you with a ten foot pole: being a successful operator of three other franchised properties is one of their requirements. (If you can do it, by all means, do it.)

Wingate is a possibility, although a very weak one. I wouldn't do Hawthorn, and there are some, but not that many, places I'd put a Microtel. 

But if IHG is still playing 'hard to get' with you after you try to call them back, give the Best Western, Red Lion, and LaQuinta people a call before you do anything else.

I'll get back with some more detail on this, but also see Michael Forrest Jones' answer to What is the average percentage of business a hotel owner can expect from brand-specific sources? and Michael Forrest Jones' answer to What is a good way to start a hotel chain?

Originally appeared on Quora.

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