Best hotel franchises in the UK in 2024
Hotels provide a great service and a satisfying business opportunity. Let’s take a look at the best hotel franchises to own this year and beyond!
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The hotel industry in the United Kingdom offers visitors (and franchisors) a fantastic selection.
From cosy, tiny spots and boutique hotels to a luxury hotel chain like Hyatt or Hilton Hotel & Resort, and even national budget brands, there are several different types of hotels in the UK. Both international and domestic tourism, as well as the hospitality industry, contribute to this market, which is worth an astounding USD$20.7bn. The hotel occupancy rate has seen some highs, too, with numbers reaching nearly 80 per cent.
If you’re curious about hotel franchising, now is as good a time as any to embark on this exciting endeavour and make a name for yourself in the hotel business.
With all the choices, though, what are the best franchising options for you? Why buy a hotel franchise in the UK? What are the benefits and caveats?
We explain it all in this helpful guide, good for both a new or seasoned franchisee. Keep reading.
Is a hotel franchise opportunity worth your investment? If so, why?
When it comes to hotels and hospitality franchising, there’s one thing worth considering: most hotels (more than 70 per cent), carry a brand attached to their name. What does this mean?
When you invest in a franchise that not many people have heard about, you’ve got more work cut out for you in the way of advertising and marketing to new clients. You’ll have to build that brand instead of coming into an already-established one. It’ll take more effort, time, and money for you to gather a new customer base.
With the majority of hotels having a reputation attached to them, your work is wildly reduced. A hotel group or hotel brand has ‘unbeatable value’ in that it provides loyalty programmes, reservations, and that coveted brand recognition. These factors can make the ROI quicker and more profitable, portraying them as a safer investment.
But that doesn’t mean only a brand-recognised hotel chain is worth investing in. Research has shown that independent hotels are also a worthwhile investment, with the largest-recorded revenue-per-available-room growth in 2018. Occupancy growth was expected to remain more plateaued, however (but is not dropping).
Additionally, franchises are a huge part of the hotel business in general. Many hotel chains are owned and operated by franchisees, making the decision an easier, more straightforward one.
Chain vs franchise: what’s the difference?
How can you make your hotel brand investment even better?
Well, in large part, as a hotel owner, it comes down to the customers — and how you can make them more content while staying at your hotel, resort or hospitality dwelling.
That can mean several things: upgrades to amenities or structure, refreshes (such as in décor), and friendly staff. Your guests will notice these things and make a judgement based on what they see and feel while making a stay there. Do they feel welcome and special, or like a replaceable entity in the venture for more profits?
So, when considering what hotel to franchise in, it’s essential to have these ideas laid out before signing any contracts, franchise agreement or paying the initial franchise fee. Where are you allowed to be flexible and innovative, and when do you have to stay in line with the established values? What are you allowed to do as the franchise owner in terms of updating and optimising?
Top hotel franchises in the UK to consider right now
With this information in mind, you might be ready to make the leap. Which brings us to the all-important question: which hotel franchise for sale is within your interests and budget? Should you consider a boutique hotel or a branded hotel? If so, do you want to invest in a luxury brand hotel or a motel?
The answer is up to you. In the meantime, take a look at the following options to get an idea of the current offerings.
The Longcroft Luxury Cat Hotel
You read that correctly! When we mentioned niche hotel brands, this is one that we had in mind.
The Longcroft Luxury Cat Hotel is a place for felines to relax, sans owners. If their human counterparts need a break or a vacation, this is where their cats can stay. With five-star accommodations, gorgeous suites, and a garden and play area to boot, this option is perfect for those who want to embark on a franchise that’s a little more unique and creative.
There are designer beds for the four-legged friends, as well as gourmet food and the option to enjoy a kitty spa. What more could cats ask for? Call it a cattery, a cat hotel, or a place for cat boarding—whatever the moniker, it’s sure to be a memorable experience.
Best Western
Okay, let’s get down to business here. Best Western is one of the world’s most well-known hotel chains, operating in over 4,200 locations with a variety of names under its belt. Each site is independently, privately owned (by someone just like you!).
Earlier, we mentioned that many hotels come with a loyalty programme that basically guarantees you’ll get visitors. Best Western is one such hotel, boasting a whopping 3.8 million loyalty members.
Best Western also provides several benefits to franchisees, including:
- Taking care of your distribution platform
- Revenue and sales management services
- Taking charge of marketing
- A nearly-guaranteed ROI of 10:1
- A low initial investment of £420,000
For taking on such a strong name and business ethic, that price is almost too good to be true!
Holiday Inn and Holiday Inn Express
The Holiday Inn is another notable name in the hotel business, having been established back in 1952. Their franchising efforts started not long after, in 1954.
While a majority of Holiday Inn franchises are located in the US, a significant portion — 1,100 — are located in other countries. Holiday Inn cites that it’s currently seeking new franchise units worldwide, leaving the UK a viable option on its radar.
The Holiday Inn franchise offers some perks, too, similar to that of Best Western. The brand provides financing options through third-party sources, with the opportunity to cover the following franchise costs:
- Franchise fee
- Startup costs
- Basic equipment costs
- Payroll
- Accounts receivable
- Inventory
You can expect to pay an initial fee of about $50,000 USD, as well as 5-6 per cent in ongoing royalty fees. But with all the provided ongoing support, those prices are affordable!
Choice Hotels
Choice Hotels added an additional nine branded properties to its UK portfolio, thanks to its relationship with Akkeron Hotels Group Limited. Akkeron is a well-known hotel operator in the UK. This partnership has resulted in a 25 per cent increase in the Choice Hotel’s UK portfolio, which includes an extra 611 rooms.
This financial support has helped boost Choice Hotel’s offerings, proving that the growth strategy is working. Choice Hotels has done so with a singular mission: expand its franchising options in strategic locations and targeted markets.
Growth in Europe is a crucial focus for Choice Hotels, and its partnering with such a high-powered hotel operator such as Akkeron has made this an achievable dream. This growth is adding to the already-established 500 locations throughout Europe, making Choice Hotels a household name in the UK. All of these locations are franchised.
As with the other hotels on this list, Choice Hotels has a loyalty programme that includes over 16.5 million members. They also offer reservations through an online booking system and third-party websites focusing on travel. National advertising campaigns also make this a sound investment.
Travelodge
Another well-known hotel chain in the UK is Travelodge — the second-largest, in fact, when considering the number of locations and rooms available. It currently has over 560 hotels providing an astonishing 40,000+ rooms throughout Spain, Ireland, and the UK.
The UK represents the largest part of Travelodge’s market, or 99 per cent of its total revenue.
Travelodge’s part of the market is a particular one: the midscale market (an attractive one at that) and economy sector. This low-cost operator is a favourite for many international and domestic travellers thanks to modern rooms at affordable prices. They cater to both business and pleasure visitors.
About 90 per cent of Travelodge reservations come through direct channels, resulting in an attracted 18 million customers per year. Again, the marketing and advertising will be made easy with such a big name as this one.
5 holiday and hotel franchise opportunities you can get involved in
Are you ready to check-in to these great opportunities?
Hotel franchises in the UK are a sound investment. Often, they’re set-up for success with a long-time brand, reputation, and loyalty programme that practically guarantees you’ll get customers. Additionally, the ROI promises to be worth it, offering profits that are hard to achieve so quickly in other franchising industries.
So, with the above information in mind, what hotel will you choose?
With any questions in your franchising journey, keep coming back here as your go-to source for information. We’re continuously reviewing franchise options, providing guidelines about franchising in general, and offering transparent costs and fees.
Click here to view all our business advice under one convenient tab, and please don’t hesitate to request additional free information or enquire to another business. We look forward to helping!
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