January/February 2021
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THE <strong>2021</strong><br />
FRANCHISE<br />
REPORT<br />
Franchise Costs<br />
- initial application fee<br />
US$100,000; plus US$400/room<br />
in excess of 250<br />
- royalty fee 5% GRS<br />
- program contribution services<br />
2.12% of GRS and ClubSport<br />
revenues (includes marketingfund<br />
contribution of 1.5%<br />
GRS); plus US$50,000/<br />
year; plus US$510/room/year<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- staff training<br />
- supplies<br />
RESIDENCE INN BY MARRIOTT<br />
Marriott International, Inc.<br />
2425 Matheson Blvd. E., Ste. 100<br />
Mississauga, ON L4W 5K4<br />
905-366-5208<br />
marriottdevelopment.com<br />
Regional VP, Lodging<br />
Development, Canada: Paul Loehr<br />
VP, Lodging Development,<br />
Canada: Aaron Laurie<br />
Director, Lodging Development,<br />
Canada: Duncan Chiu<br />
History, Plans<br />
- acquired Residence Inn in 1987<br />
- 26 properties in Canada; 838<br />
outside of Canada<br />
- four properties in the pipeline<br />
for Canada<br />
Franchise Costs<br />
- initial franchise fee US$90,000;<br />
plus US$500/suite in excess<br />
of 150<br />
- royalty fee 6% GRS<br />
- program services contribution<br />
2.56% of GRS (includes mar<br />
keting-fund contribution of 2.5%<br />
GRS); plus US$6,000/year; plus<br />
US$65/suite/year<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- staff training<br />
- supplies<br />
RODEWAY INN<br />
Choice Hotels Canada Inc.<br />
5015 Spectrum Way, Ste. 400<br />
Mississauga, ON L4W 0E4<br />
905-206-7316<br />
choicehotelsdevelopment.ca<br />
President, Brian Leon<br />
History, Plans<br />
- established in 1993 in Canada<br />
- 10 properties in Canada; 557<br />
outside of Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $200/room;<br />
minimum $15,000<br />
- advertising fee 1.25%<br />
- royalty fee 4%<br />
- reservation fee 1.25%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- staff training<br />
- supplies<br />
SHERATON HOTELS<br />
& RESORTS<br />
Marriott International, Inc.<br />
2425 Matheson Blvd. E., Ste. 100<br />
Mississauga, ON L4W 5K4<br />
905-366-5208<br />
marriottdevelopment.com<br />
Regional VP, Lodging<br />
Development, Canada: Paul Loehr<br />
VP, Lodging Development,<br />
Canada: Aaron Laurie<br />
Director, Lodging Development,<br />
Canada: Duncan Chiu<br />
History, Plans<br />
- 18 properties in Canada; 428<br />
outside of Canada<br />
- no properties in the pipeline<br />
for Canada<br />
Franchise Costs<br />
- initial application fee<br />
US$100,000; plus US$400/room<br />
in excess of 250<br />
- royalty fee 6% of GRS, plus 2% of<br />
gross food-and-beverage sales<br />
- program services contribution<br />
2.42% of GRS includes marketing-fund<br />
contribution of 1%<br />
GRS); plus US$50,000/year;<br />
plus US$510/room/year<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- staff training<br />
- supplies<br />
SIGNATURE INN<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: Harry<br />
Sladich<br />
VP, New Development:<br />
Christopher Slattery<br />
History, Plans<br />
- relaunched 2018<br />
- nine properties in the U.S.,<br />
including Signature (midscale)<br />
properties<br />
- expansion underway in Canada<br />
Franchise Costs<br />
- application fee $20,000 for first<br />
70 rooms; plus $150/room<br />
over 70<br />
- flat membership fee $50/room/<br />
month (includes royalty,<br />
marketing and PMS license)<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 />
SLEEP INN<br />
Choice Hotels Canada Inc.<br />
5015 Spectrum Way, Ste. 400<br />
Mississauga, ON L4W 0E4<br />
905-206-7316<br />
choicehotelsdevelopment.ca<br />
President, Brian Leon<br />
History, Plans<br />
- established in 1996 in Canada<br />
- four properties in Canada;<br />
423 outside of Canada (all<br />
franchised)<br />
Franchise Costs<br />
- initial franchise fee: $300/room;<br />
minimum $35,000<br />
- advertising fee 1.3%<br />
- royalty fee 4%<br />
- reservation fee 1.75%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- staff training<br />
- supplies<br />
SPRINGHILL SUITES<br />
BY MARRIOTT<br />
Marriott International, Inc.<br />
2425 Matheson Blvd. E., Ste. 100<br />
Mississauga, ON L4W 5K4<br />
905-366-5208<br />
marriottdevelopment.com<br />
Regional VP, Lodging<br />
Development, Canada:<br />
Paul Loehr<br />
VP, Lodging Development,<br />
Canada: Aaron Laurie<br />
Director, Lodging Development,<br />
Canada: Duncan Chiu<br />
History, Plans<br />
- established 1998<br />
- two properties in Canada; 477<br />
outside of Canada<br />
- three properties in pipeline<br />
in Canada<br />
Franchise Costs<br />
- initial franchise fee US$75,000;<br />
plus US$400/suite in excess of 150<br />
- royalty fee 5.5% of GRS<br />
- program services contribution<br />
3.85% of GRS (includes marketing-fund<br />
contribution of 2.5%<br />
GRS); plus US$10,000/year; plus<br />
US$220/suite/year<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- staff training<br />
- supplies<br />
hoteliermagazine.com<br />
JANUARY/FEBRUARY <strong>2021</strong> | 23
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