MANCHISING – the way of combining advantages of a franchising model with controlled management
Hoteliers Inspiration CEO and Founder, Sergio Foti, explains the model: “with more than 100 years working hotel experience combined in the team and after many years of work with the big corporate brands, we understand both sides of management agreements, and therefore we have developed a new management model to appeal to owners and developers of hotel projects in the region who do not necessarily wish to tie themselves to a management company for the next decade or longer, at the same time our management model provides owners involvement with the running of the hotel.
Furthermore, within this business model, Hoteliers Inspiration partially manages the property for two years, establishing a Management Control System that unable both parts to control the financial side of the business, the day to day operation, establish stronger standards operating procedures, and identifying overall training procedures and other HR processes to efficiently run the hotel.
After the two-year period, once the hotel is established and successful, the owner will be able to resume management or continue collaboration with Hoteliers Inspiration under a manchise type of arrangement.
Hoteliers Inspiration contracts offer the owners, all the knowledge gained from reputable hotel brands with proven business models to launch and establish the hotel, without the long term ongoing fees costs and limitations of a full-fledged management contract.
The hoteliers Inspiration approach is a hybrid between the management contract and a franchise agreement, and more suitable for budget and mid-market hotels where owners or representatives may be more closely involved with the day-to-day running of the hotel.
Currently it is used as a business model in two hotels in Slovenia with great results, we have been able to increase G.O.P at a staggering 12% higher than previous years, by achieving both, substantial increase in revenues and the optimization of operational cost.
It gives new hotels adopting this model, the opportunity to learn the business without jeopardizing their investment, and once the hotel operation is beginning to stabilize and mature, the owner will also be ready to run it as he wishes.
Three key benefits
- Offers developers and hotel owners a guaranteed return and security for the management of the property
- Allows the investor or owner to have a great control of both the asset and the operation
- Total control of the operating profit by implementing USALI and GAAP principles for the hotel industry
The above scenarios are an example of how Hoteliers Inspiration can operate in close harmony with hotel owners but we are naturally open to variations.
We look forward to opening a discussion with you to explore the opportunities for a fruitful cooperation.