January/February 2021
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THE <strong>2021</strong><br />
FRANCHISE<br />
REPORT<br />
Franchise Costs<br />
- initial franchise fee US$75,000;<br />
plus US$400/room in excess of 150<br />
- royalty fee 5.5% of GRS<br />
- program services contribution<br />
3.15% of GRS (includes a contribution<br />
to the marketing fund of<br />
1% of GRS); plus US$10,000/year;<br />
plus US$220/room/year.<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- staff training<br />
- supplies<br />
GUESTHOUSE EXTENDED STAY<br />
Red Lion Hotels Franchising, Inc.<br />
1550 Market St., Ste. 425<br />
Denver, CO 80202<br />
866-437-4878<br />
franchise.rlhco.com<br />
EVP, Lodging Development &<br />
Franchise Operations:<br />
Harry Sladich<br />
VP, New Development:<br />
Christopher Slattery<br />
History, Plans<br />
- franchising, Inc. since 2015<br />
- re-launched as extended-stay<br />
brand in late 2020<br />
- 18 properties outside of Canada<br />
- expansion planned for Canada<br />
Franchise Costs<br />
- application fee $20,000 for first<br />
60 rooms; plus $150/room over 70<br />
- flat membership fee $60/room/<br />
month (includes royalty and<br />
marketing)<br />
- no loyalty Fees<br />
Services<br />
- advertising/marketing<br />
- CRM<br />
- CRS and CRO<br />
- design<br />
- guest recognition program<br />
procurement<br />
- revenue-management<br />
assistance<br />
- site selection<br />
- supplies<br />
- sales and support<br />
HAMPTON BY HILTON<br />
Hilton<br />
7930 Jones Branch Dr.<br />
McLean, VA 22102<br />
703-883-1000<br />
hilton.com/en/corporate/<br />
development/<br />
President & CEO: Christopher<br />
Nassetta<br />
Senior director, Development,<br />
Canada: Jeff Cury<br />
History, Plans<br />
- established in 1984<br />
- 62 properties in Canada (57<br />
franchised); 2,583 outside<br />
of Canada<br />
Franchise Costs<br />
- initial franchise fee US$75,000<br />
for the first 150 rooms, plus<br />
US$400 per additional room<br />
- royalty fee 6% of GRR<br />
Services<br />
- advertising/marketing<br />
- design<br />
- Hilton HHonors guest-reward<br />
program<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
HAWTHORN SUITES<br />
BY WYNDHAM<br />
Wyndham Hotels & Resorts<br />
22 Sylvian Way<br />
Parsippany, NJ 07054<br />
800-889-9710<br />
wyndhamdevelopment.com<br />
EVP and Chief Development<br />
Officer: Chip Ohlsson<br />
History, Plans<br />
- 110 properties outside of Canada<br />
Franchise Costs<br />
- initial fee for construction equal<br />
to the greater of $44,500 or<br />
$400/room; for conversion of<br />
$40,000 or $400/room<br />
- royalty fee 5.5% GRR<br />
- marketing/reservation<br />
contribution 2.5% GRR<br />
Services<br />
- architectural services<br />
- advertising/marketing<br />
- design<br />
- development<br />
- field support<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- quality control<br />
- reservation systems<br />
- staff training<br />
- supplies<br />
HILTON GARDEN INN<br />
Hilton<br />
7930 Jones Branch Dr.<br />
McLean, VA 22102<br />
703-883-1000<br />
hilton.com/en/corporate/<br />
development/<br />
President & CEO:<br />
Christopher Nassetta<br />
Senior Director, Development,<br />
Canada: Jeff Cury<br />
History, Plans<br />
- established in 1996<br />
- 27 properties in Canada (all<br />
franchised); 861 outside of<br />
Canada<br />
Franchise Costs<br />
- initial franchise fee US$75,000<br />
for the first 150 rooms, plus<br />
US$400 per additional room<br />
- royalty fee 5.5% of GRR<br />
Services<br />
- advertising/marketing<br />
- design<br />
- loyalty program<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
HILTON HOTELS & RESORTS<br />
Hilton<br />
7930 Jones Branch Dr.<br />
McLean, VA 22102<br />
703-883-1000<br />
hilton.com/en/corporate/<br />
development/<br />
President & CEO: Christopher<br />
Nassetta<br />
Senior director, Development,<br />
Canada: Jeff Cury<br />
History, Plans<br />
- established in 1925 in Texas<br />
- 13 properties in Canada (nine<br />
franchised); 565 outside of<br />
Canada<br />
Franchise Costs<br />
- Initial franchise fee: US$75,000<br />
for the first 250 rooms, plus<br />
US$400 per additional room<br />
- Royalty Fee: 5% of Gross<br />
Rooms Revenue<br />
Services<br />
- advertising/marketing<br />
- design<br />
- Hilton HHonors guest-reward<br />
program<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
HOLIDAY INN EXPRESS<br />
InterContinental Hotels Group (IHG)<br />
2 Robert Speck Pkwy., Ste. 600<br />
Mississauga, ON L4Z 1H8<br />
416-675-6644<br />
holidayinnexpress.com<br />
Regional Director, Midscale<br />
Franchise Sales & Development,<br />
Canada: Stuart Laurie<br />
History, Plans<br />
- established in 1991<br />
- 106 Franchised Properties in<br />
Canada; 2,720 outside of Canada<br />
- Plans to add 30 units in Canada<br />
hoteliermagazine.com<br />
JANUARY/FEBRUARY <strong>2021</strong> | 15
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