(MENAFN- GlobeNewsWire - Nasdaq) The global hotel franchise market is anticipated to grow from USD 37.02 billion to USD 77.16 billion in 10 years. Frequent travellers always opt for the reliability and facilities of well-known hotel chains, which significantly boosts the prosperity of hotel franchises. Furthermore, hotel franchising offers attractive investment and development opportunities for entrepreneurs, investors, and developers seeking to enter or expand their presence in the hospitality industry. Franchisors can provide support in site selection, financing, design, and construction to facilitate new hotel developments and conversions.Newark, May 20, 2024 (GLOBE NEWSWIRE) -- The Brainy Insights estimates that the USD 37.02 billion in 2023 global hotel franchise market will reach USD 77.16 billion by 2033. Integrating technology and digital innovation will continue to shape the hotel franchise market. Opportunities exist for franchises to leverage artificial intelligence, data analytics, mobile apps, and IoT devices to enhance the guest experience, personalize services, and streamline operations. Furthermore, the rise of remote/WFH work and flexible working arrangements has created a demand for hotels offering co-working spaces, business centers, and amenities conducive to remote work. Hotel franchises can tap into this trend by providing innovative workspace solutions and catering to digital nomads, freelancers, and business travellers seeking remote work-friendly accommodations.
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Scope of Wood Chipper Market
| Report Coverage | Details |
| CAGR | 7.62% from 2024 to 2033 |
| Market Size in 2023 | USD 37.02 Billion |
| Market Size by 2033 | USD 77.16 Billion |
| Largest Market | North America |
| Base Year | 2023 |
| Forecast Year | 2024 to 2033 |
| Historical Year | 2020-2022 |
| Segments Covered | Chain Value, Hotel Type, Regions |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
In addition, environmental sustainability and eco-friendly practices are becoming increasingly important to travellers and stakeholders in the hospitality industry. Hotel franchises can capitalize on this trend by implementing sustainable approaches such as waste reduction, energy efficiency, water conservation, and eco-friendly construction to attract environmentally conscious guests and meet regulatory requirements.
Key Insight of the global Hotel Franchise market
Asia Pacific is expected to witness the highest market growth over the forecast period.
The region is experiencing enormous economic growth, driven by developing nations such as Japan, China, India, and Southeast Asia. This economic expansion has increased disposable income, urbanization, and a burgeoning middle class, resulting in greater demand for travel and accommodation. Additionally, Asia Pacific is home to some of the world's fastest-growing tourism destinations, including iconic landmarks, cultural attractions, and natural wonders. The region's diverse landscapes, rich history, and vibrant cultures attract millions of domestic and international tourists each year, creating opportunities for hotel franchises to expand their presence and cater to growing demand. Moreover, as Asia Pacific economies continue to grow and integrate into the global economy, there is a corresponding increase in business travel and corporate events within the region. Major business hubs such as Tokyo, Singapore, Hong Kong, Shanghai, and Mumbai require extensive hotel accommodations to meet the needs of business travellers, creating a favourable environment for hotel franchise growth.
In 2023, the midscale segment dominated the market with the largest share of 28.74% and revenue of 10.64 billion.
The chain value segment is divided into economy, luxury, midscale, upper upscale, upscale and upper midscale. In 2023, midscale segment dominated the market with the largest share of 28.74% and revenue of 10.64 billion.
In 2023, the extended stay segment dominated the market with the largest share of 46.21% and revenue of 17.11 billion.
The hotel type segment is classified into extended stay, residence, select service and others. In 2023, the extended stay segment dominated the market with the largest share of 46.21% and revenue of 17.11 billion.
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Advancement in market
In March 2024: Hilton has revealed a partnership with Adventurous Journeys Capital Partners (AJ Capital) to acquire the beloved Graduate Hotels brand. This move marks a substantial expansion opportunity for the leading global hospitality entity within the rapidly expanding lifestyle hotel sector.
In November 2024: Accor Pacific has unveiled its collaboration with 120 hotels spanning various apartments, hotels, and resorts, signifying a noteworthy achievement in advancing its franchise hotel ventures in New Zealand and Australia.
Market Dynamics
Driver: Globalization and travel trends.
The globalization of travel and the surge in tourism within emerging markets have opened up significant opportunities for hotel franchises to expand their global footprint. This evolution is driven by the growing need for accommodation options in destinations that are increasingly popular among travellers. Franchisors are leveraging these trends by strategically targeting key markets where tourism is booming and adapting their offerings to cater to the various choices of travellers. This aspect involves understanding each market's unique cultural, economic, and social dynamics and tailoring hotel services and amenities accordingly. In emerging markets, affordable yet quality accommodation options that cater to domestic and international travellers are often needed. Hotel franchises can capitalize on this demand by providing a range of choices, from budget-friendly to luxury accommodations, to appeal to different customer segments. Moreover, the evolution of digital technology has made it easier for hotel franchises to reach and engage with customers in emerging markets. Online booking platforms have become vital tools for marketing and distribution, allowing franchises to connect with travellers directly and provide personalized experiences. By strategically expanding into emerging markets and adapting their offerings to suit local preferences, hotel franchises can set themselves up for long-term development and success in the global tourism industry.
Restraint: Limited autonomy.
Franchisees undoubtedly gain advantages from the support and resources furnished by franchisors, yet they contend with constrained autonomy in decision-making, a divergence from the latitude independent hotel operators enjoy. This disparity stems from the terms delineated within franchise agreements, which meticulously outline operational standards, marketing strategies, and business conduct. Consequently, franchisees need more flexibility and control over their operations, as they are beholden to the directives set forth by the franchisor. While this arrangement fosters consistency and adherence to brand standards across different locations, it can limit franchisees' ability to respond swiftly to localized market conditions or implement innovative strategies tailored to their specific circumstances. Franchise agreements often mandate adherence to standardized procedures and branding guidelines, which may only sometimes align perfectly with the nuanced needs or preferences of the local market. Furthermore, the financial obligations entailed by franchise agreements, such as royalty fees and marketing contributions, can further constrain franchisees' autonomy by necessitating adherence to predetermined budget allocations and expenditure requirements.
Opportunity: Targeting niche markets.
By honing in on niche markets, hotel franchises can develop a competitive edge by addressing these segments' specific needs and desires. For instance, catering to the needs of business travellers might involve offering amenities like well-equipped meeting rooms, business centres, and high-speed internet access coupled with services that prioritize efficiency and convenience, such as express check-in/check-out and complimentary breakfast options. Similarly, targeting family vacationers could entail providing family-friendly accommodations with spacious rooms, recreational facilities for children, and services like childcare or kid-friendly meal options. This factor can create a welcoming environment that appeals to families seeking a hassle-free and enjoyable stay. Moreover, hotel franchises can differentiate themselves by focusing on luxury seekers and offering personalized services and upscale amenities that cater to their discerning tastes. This aspect might include luxurious spa facilities, gourmet dining options, exclusive concierge services, and opulent room designs, providing unparalleled comfort and indulgence for guests seeking a premium experience. Additionally, hotel franchises can explore niche markets based on unique interests or preferences, such as eco-conscious travellers, wellness enthusiasts, or cultural aficionados. By incorporating sustainable practices, wellness programs, or cultural experiences into their offerings, franchises can attract guests who prioritize these aspects when choosing accommodations.
Challenge: Regulatory compliance.
Hotel franchises must navigate complex regulatory requirements encompassing zoning laws, building codes, health and safety regulations, and employment laws. Zoning laws dictate the permissible land use and development activities within specific geographical areas, including where hotels can be situated and what accommodations they can offer. Ensuring compliance with these laws involves receiving the necessary permits and approvals from local authorities, which may vary immensely depending on the location and local regulations. Furthermore, health and safety regulations impose stringent standards for maintaining cleanliness, hygiene, and sanitation within the hotel campus to safeguard the health and well-being of visitors/guests and staff. Compliance involves implementing robust sanitation protocols, food safety practices, and emergency preparedness measures and adhering to safety and health guidelines issued by relevant authorities. Compliance with these regulations is paramount for ensuring the lawful operation of the business and safeguarding the well-being of guests and employees. However, achieving compliance can be multifaceted and time-consuming, particularly for franchisees operating across multiple jurisdictions with varying legal frameworks.
Some of the major players operating in the global Hotel Franchise market are:
. AccorHotels S.A.
. Best Western Hotels & Resorts
. Choice Hotels International
. Days Inn
. Econo Lodge
. Extended Stay America
. Four Seasons Hotels & Resorts
. Hilton
. Hyatt Hotels Corporation
. InterContinental Hotel Groups (IHG)
. Jin Jiang International
. La Quinta
. Lemon Tree Hotels
. Marriott
. Motel 6
. Mandarin Oriental Hotel Group
. Melia Hotels International
. NH Hotel Group
. OYO
. Radisson Hotel Group
. Sheraton
. Super 8
. Treebo Hotels
. Wyndham
Key Segments cover in the market:
By Chain Value
. Economy
. Luxury
. Midscale
. Upper Upscale
. Upscale
. Upper Midscale
By Hotel Type
. Extended Stay
. Residence
. Select Service
. Others
By Region
. North America (U.S., Canada, Mexico)
. Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
. Asia-Pacific (China, Japan, India, Rest of APAC)
. South America (Brazil and the Rest of South America)
. The Middle East and Africa (UAE, South Africa, Rest of MEA)
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About the report:
The market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter's five forces model, attractiveness analysis, Product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.
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The Brainy Insights is a market research company that provides actionable insights through data analytics to companies to improve their business acumen. They have a robust forecasting and estimation model to meet the client's objectives of high-quality output within a short period. They provide both customized (client-specific) and syndicate reports. Their repository of syndicate reports is diverse across all the categories and sub-categories across domains. Their customized solutions meet the client's requirements whether they are looking to expand or planning to launch a new product in the global market.
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