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Hotel Franchise Opportunities

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Trends and Facts About Hotel Franchises

1. The hotel and motel industry in the United States is estimated to be a $194 billion industry.

2. Many of the top hotel franchises of today started out in the 1950s. Choice Hotels International, with more than 6,500 hotels worldwide, started out as Quality Courts United. Meanwhile, Holiday Inn, now part of the InterContinental Hotels Group (IHG) franchise brands, began in 1951 to proivde affordable and comfortable hotel rooms for large family road trips. And Howard Johnson Motor Lodges, part of Wyndham Hotel Group, began in 1954 when the popular restaurant chain expanded its brand into lodging.

3. 66% of regular leisure travelers who are hotel users now use the Internet when planning a vacation, and 57% report making reservations for hotels online.

4. The most popular vacations taken by Americans are short getaways consisting of four nights or less, including a Saturday night stay. These short getaways represent over half of all vacations taken by American travelers each year.

5. Costs of owning a hotel franchise vary by industry segment. The median construction cost for a budget and economy hotel per room is estimated at $95,486; limited-service hotels cost $159,396 per room; extended stay hotels cost $118,078 per room; select-service hotels cost $226,700 per room; full-service hotels cost $323,600 per room; and luxury hotels and resorts cost $550,500 per room. Hotel franchises can be costly businesses to start, making it challenging for beginning prospective franchisees to enter the industry.

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