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Hotel Franchises Embrace No Frills

One of the largest industries on the Top 100 Global Franchises was hotel franchises, which is a sector we probably don’t give enough time to on this blog. They are certainly one of the most visible franchise industries out there today and one of the best-suited to international success.

So how has the recession been affecting their business? Monday’s New York Times included a very interesting story about how business travelers in search of better value are spurning all of the accoutrements of boutique hotels in search of the cheapest deal. No frills is the attitude of the moment, with businessmen and women even avoiding hotels with hotels and meeting rooms.

“If you used to stay in a full-service Sheraton, Marriott or Hilton, you may trade down to a Four Points, Courtyard by Marriott or Hilton Garden Inn,” said Al Calhoun, managing director of Jones Lang LaSalle Hotels, a real estate management and investment firm, to the Times.

With business travelers comprising so much of the regular business at hotel, clearly franchises will have to adapt. It’s interesting to see budget hotels like Travelodge, Days Inn and Hampton Inns represented on the Top 100 Global Franchises. These franchises are perfectly-positioned to capitalize on this trend and it seems like their standing will only rise in the next few years.

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