HVS International
07/18/2001
HVS
Releases 2001 Franchise Fees Analysis Guide, Part II:
A Detailed Analysis of “Miscellaneous Costs” to the Hotel Owner
Stephen Rushmore, president and founder of HVS International, the
leading global hospitality consulting and appraisal firm, has announced
the release of the 2001 Franchise Fees Analysis Guide, Part II: A Detailed
Analysis of “Miscellaneous Costs” to the Hotel Owner. This guide will
enable hotel owners/operators to easily compare the actual costs of one
hotel franchise with those of another.
The first part of 2001 Franchise Fees Analysis Guide, released in May
of 2001, provides a comparative analysis of a total of 84 franchise
groups, including 30 economy, 31 mid-rate, and 23 first-class franchisors,
based on the fees they charge.
“The purpose of the hotel franchise fees guide, Part II, is to
provide a detailed analysis of what types of miscellaneous costs are
associated with the various hotel franchise companies,” states Rushmore.
Now, owner/operators can benefit from the franchise-specific information
this guide provides. Such information includes liquidated damage,
hardware/software, global distribution system, and maintenance/support
costs, as well as a variety of other costs that individuals may oversee
when considering a franchise
Essentially, Part II is broken down into three segments –
first-class, mid-rate, and economy. It is later further broken down into
additional fee categories. The information was obtained through a
disclosure document known as the Uniform Franchise Offering Circular (UFOC),
which is regulated the Federal Trade Commission. For example:
I:
II:
III.
“Miscellaneous costs can be easily overshadowed by costs associated
with Royalty, Marketing, and Frequent Travelers,” explains William Lee,
Associate at HVS International, who co-authored the study with Rushmore.
“Armed with this information, and that provided in Part I, an
owner/operator can determine the overall cost of affiliation and directly
compare the actual costs of different brands. For instance, would you
expect to factor nearly 3% of gross room sales for ‘Miscellaneous Costs?’
“Most hotel lenders believe that, in order to be competitive in today’s
hotel market, a strong franchise affiliation is essential, and therefore,
the selection of a brand affiliation should be carefully evaluated,” Lee
continues. “Hotel lenders also typically insist on a franchise
affiliation of some type because it reduces the perceived investment risk.”
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About the Company
HVS
International was created in 1980 to satisfy the growing demand for
reliable and well-documented hotel market studies and feasibility
reports. With 11 offices worldwide, HVS offers a vast range of services
including valuations, strategic analyses, development planning,
litigation support, executive search, waste management, gaming and
restaurant consulting, asset management, and operation and management
strategy development.
Stephen
Rushmore has provided consulting services for thousands of hotels
worldwide. HVS databases are the primary source of information regarding
hotel sales and compensation. Rushmore is a leading authority and the
prolific author of numerous textbooks and hundreds of articles.
For more
information about the 2001 Hotel Franchise Fees Analysis Guide,
contact William Lee at
(516) 248-8828, ext. 26 .
To purchase the 2001 Hotel Franchise Fees Analysis Guide, Part
II, for $600.00, or to purchase Part I of the Guide for $295.00,
contact Joan Raffetto
at (516) 248-8828, ext. 231.
To Visit The HVS International Web Site go to:
http://www.hvsinternational.com
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2000
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