Thomas Kennedy
Value, growth, growth at reasonable price, ETF investing

Hotel Industry: Competitive Factors And Discussion Of Hotel Franchisors As An Investment Opportunity

Market Overview

In the hotel industry, companies tend to fall into one of 2 main classifications: franchisors or owners. Franchisors license their brands to hotel owners, most often receiving a set percentage of each hotel's revenues as franchise and marketing fees. In exchange for these fees, the hotel owner benefits from the brand name of the franchisor and a number of other perks of being part of its franchise system, such as its reservation system and its loyalty program, each of which helps to lower costs and drive increased revenues to the hotel.

There is a distinct separation between hotel owners and franchisors: most of the major brands are franchised, and franchisors often own only a small percentage of the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details