Do Hilton Hotels Franchise?

10/03/2019 18:00 | International franchises

hilton hotels franchise

The hospitality industry in the UK provides great scope for countless potentially lucrative business opportunities. In 2018, the industry was estimated to value between £100 billion and £130 billion, according to UKHospitality. It is also believed that the hotel industry could have even benefitted from the recession that began in 2008 as a result of Brits opting to go on mini-breaks in the UK, rather than overseas. As a result of our thriftiness, the staycation market in the UK was boosted and is still thriving, signifying that hotel franchises are a wise investment opportunity.

As well as being budget-conscious, Brits are a hard-working nation. With £39 billion of UK spending coming from business-related travel, the demand for last-minute temporary accommodation in cities all over the UK is at an all-time high.

Hotel Franchises

Franchising is popular in the hospitality industry with most big hotel chains, as the parent company does not have to shell out on the maintenance and overhead cost of the franchised properties.

Like with any franchise, starting your own hotel franchise can require a large investment. However, with hotel franchises in particular, there is remarkable revenue potential too.

Running a hotel isnt easy. There is a whole host of things involved to carefully consider. Therefore, interested entrepreneurs need to be dedicated to the pursuit of success. Not only are hotel franchise owners responsible for motivating sales, but also running a team of employees and dealing with guest complaints.

Investing in an existing hotel franchise is advantageous because you can operate under a well-known brand name that guests trust and are happy to spend their hard-earned money on.

If youre unsure whether hotel franchises are the best business move for you, take a look below at some of the benefits.

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Benefits of Starting a Hotel Franchise

  • The franchise team will help with selecting a location and deciding which amenities to provide.
  • Joining a franchise means you can assess its financial history and estimate income and expenses.
  • With the large variety of chains available, there is the opportunity to own a luxury five-star establishment or, at the other end of the scale, a small budget hotel.
  • You wont be struggling on your own. Its important to bear in mind that the franchise only makes money if you do, so its in their interest to ensure you are profitable.

Hilton Hotels

Hilton Hotels & Resorts is undeniably one of the most recognised hotel brands in the world. Being a leader in innovative products, amenities and services, Hilton remains synonymous with hotel all over the world. Hilton Hotels & Resorts continues to be a stylish, sophisticated and forward-thinking global front-runner in the industry. The brand prides itself on making travel a whole lot easier, with its elegant design, advanced restaurant concepts and dedication to the global hospitality community.

History of Hilton

Hotel innovation began in 1919 when Conrad Hilton brought his very first hotel in Cisco, Texas. Then, in 1927, Hilton opened the Waco Hilton, his first hotel with air-conditioning and cold running water in the public rooms. Fast forward 20 years, and the Roosevelt Hilton in New York City became the first hotel in the world to fix televisions in the guest rooms. A year later, Hilton pioneered a multi-hotel reservations system, which is the start of the modern reservation system we use today. In 1950, Hilton developed a special amenity for female guests - a booklet with useful phone numbers in and a sewing kit. Seven years on, Hilton offered its first direct-dial telephone service across hotel network. In 1959, the brand opened its first airport hotel, San Francisco Airport Hilton, and introduced the airport hotel concept - much to the relief of business travellers everywhere. In 1987, Hilton launched Hilton Honors, its guest loyalty programme.

Skipping to the 21st Century, Hilton Vancouver Washington was the first hotel in history to be both Leadership in Energy and Environmental Design (LEED) and Green Seal certified. In 2010, only five months after the opening of eforea spa in Hilton Short Hills, the spa began operating in Thailand, China and other locations in the US. Three years later, Hilton pioneered a new dining experience, Herb N Kitchen, a grab-and-go concept offering healthy and fresh food across the globe. In 2014, the brand was the first hotel to livestream a concert on YouTube, in Hilton Times Square. And as of 2017, there are over 570 Hilton Hotels & Resorts establishments in 85 counties and territories spread across six continents. These are managed by Hilton companies, independent operators and franchisees.

Hilton Hotel Franchise Cost

Hilton is part of the portfolio of brands owned by the American multinational hospitality company, Hilton Worldwide, which has hotels in over 90 countries. In 2018, 90 percent of Hilton units were franchises, and 50 percent of those were outside the US (Entrepreneur Europe). During Blackstone Groups ownership of Hilton between 2007 and 2013, the brand pursued an expansion strategy to further Hiltons reach through franchise agreements, with few of the new properties developed being operated by Hilton. Therefore, throughout this period, the number of franchised properties grew significantly. However, many of Hiltons flagship hotels, airport locations and largest properties are corporately managed. Franchisees must adhere to stringent brand standards in order to uphold a licensing agreement with Hilton.

Hilton Franchise Holding LLC is the franchisor that licences the Hilton System. The system includes access to a reservation system, publicity, training programmes, policies for construction and much more. Hilton is seeking new franchise units worldwide. The initial investment is $29,162,700 - $111,936,150, with an initial franchise fee of $75,000 - $75,000 and an ongoing royalty fee of five percent.

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