GuestHouse International announced today it was named the category leader for low cost of affiliation in a report compiled by HVS International, a global hotel consulting firm. While most of the 83 hotel brands studied cost between 8% and 10% of room revenue, GuestHouse International`s cost was only 5.3%.
“I truly believe that GuestHouse International is the fairest franchise in the business, and this rating helps validate that,” said brand President Rob Wilson. “Not only do we provide results-driven support designed to assist each property in their local market, but we provide it at a low cost to our franchisees.” The HVS International ratings were based on the total cost of obtaining and maintaining a hotel franchise over a ten-year timeframe, and expressed in total cost as a percentage of room revenue. GuestHouse International was included in the economy segment for this study, although the majority of its hotels compete in the mid-market tier.
GuestHouse International`s top ranking is in part is due to their flat fee structure. Royalty fees are based solely on room count, not a percentage of room revenues. GuestHouse International fees are only $1.50-$1.75 per room per day, and remain the same no matter how much revenue increases. “One of the cornerstones of our fair franchising philosophy is allowing owners to keep their increases in profit,” explained Wilson.
GuestHouse International is a mid-market brand comprised of individually owned Inns, Hotels, Suites and Suites Plus properties. The brand`s franchising concept features celebration of property diversity, national support combined with a focus on property-level assistance and fair license agreements that include a short 5-year term and a guaranteed area of protection.
GuestHouse International now has over 140 locations open or under development in more than 30 states. For information about convenient locations nationwide, call 800-21-GUEST (214-8378) or visit www.guesthouseintl.com. For information about franchising opportunities, call Rob Wilson at 888-951-2100.