How much does it cost to join a hotel franchise? Popular investment trends and cost analysis in 2023
In recent years, hotel franchise has become the focus of many investors. With the recovery of the tourism industry and the increase in business travel, franchise hotel chains have become an investment option with low risk and stable returns. This article will provide you with a detailed analysis of the fee structure and market trends of franchise hotels based on the hot topics and hot content on the Internet in the past 10 days.
1. Hot spots in the hotel franchise market in 2023
According to recent hot topics on the Internet, the hotel franchise field shows the following trends:
| hot trends | Specific performance |
|---|---|
| The sinking market breaks out | Demand for hotel franchises in third- and fourth-tier cities surges |
| The asset-light model is popular | The proportion of management franchise model increased to 65% |
| Environmentally friendly theme hotel | Green certified hotel franchise fee premium is 15-20% |
| Intelligent transformation | 90% of newly franchised hotels are equipped with intelligent guest control systems |
2. Main cost components of franchise hotels
The total investment of a franchise hotel mainly includes the following parts:
| Expense items | Budget hotel | Mid-range hotel | High end hotel |
|---|---|---|---|
| Brand franchise fee | 50,000-150,000 yuan | 200,000-500,000 yuan | 800,000-2 million yuan |
| margin | 30,000-100,000 yuan | 100,000-300,000 yuan | 500,000-1 million yuan |
| decoration cost | 300-800 yuan/㎡ | 1000-2000 yuan/㎡ | 3000-6000 yuan/㎡ |
| System usage fee | 10,000-30,000 yuan/year | 30,000-80,000 yuan/year | 100,000-300,000 yuan/year |
| management fee | 3-5% of turnover | 5-8% of turnover | 8-12% of turnover |
3. Comparison of Franchise Fees of Popular Hotel Brands
According to recent search data, the following are the most popular hotel brand franchise information:
| brand name | Positioning | Single room investment | Total investment (80 rooms) | payback cycle |
|---|---|---|---|---|
| Home Inn | Economical | 40,000-60,000 yuan | 3.2-4.8 million yuan | 3-4 years |
| All Seasons Hotel | Mid-range | 80,000-120,000 yuan | 6.4-9.6 million yuan | 4-5 years |
| Atour Hotel | Mid- to high-end | 120,000-180,000 yuan | 9.6-14.4 million yuan | 5-6 years |
| Hampton by Hilton | high-end | 200,000-300,000 yuan | 16-24 million yuan | 6-7 years |
4. Key factors affecting franchise costs
1.geographical location: Property costs in first-tier cities are 50-100% higher than those in third- and fourth-tier cities
2.Property conditions: The renovation of old buildings saves 20-30% of decoration costs compared to rough houses.
3.brand premium: International brand franchise fees are usually 30-50% higher than local brands.
4.number of rooms: 80-120 rooms have the best scale efficiency and the lowest unit cost
5. Hidden costs of hotel franchise
Many investors tend to overlook the following hidden costs:
| Hidden cost items | Estimated amount |
|---|---|
| License application fees | 20,000-50,000 yuan |
| Opening preparation costs | 50,000-150,000 yuan |
| Employee training costs | 30,000-80,000 yuan |
| Liquidity Reserve | 3-6 months operating costs |
6. Investment suggestions for franchise hotels in 2023
1.Choose a mature brand: Priority will be given to chain brands with more than 500 stores.
2.Pay attention to sinking markets: The return on investment in third- and fourth-tier cities is generally higher than that in first- and second-tier cities
3.Control renovation costs: Adopting modular decoration can save 15-20% of costs
4.Take advantage of policy offers: Many local governments have tax exemption policies for hotel chain franchises.
Franchise hotels are a relatively stable investment choice. Although the initial investment is large, through reasonable brand selection and cost control, the investment can usually be recovered within 3-6 years. It is recommended that investors choose the most suitable franchise plan based on their own financial strength and target market.
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