According to FRANdata, in the United States — the most sophisticated and professionalised hotel market in the world — more than 90% of hotels already operate under a franchise model.

By contrast, in Spain, the world’s second-largest tourism market in terms of international arrivals, the situation is exactly the opposite. According to PHG Hotels & Resorts estimates, only around 10% of Spanish hotels currently benefit from the advantages offered by the franchise model.

And, as it is the case in Spain’s restaurant sector — where the franchise model is experiencing explosive growth — leveraging a franchise in the hotel sector, whether when developing a new hotel or repositioning an existing one, also delivers very significant advantages.

The main benefits of adopting a hotel franchise model can be grouped into three key areas:

1. Brand Recognition

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  – Hotel franchising allows owners to operate their properties leveraging a strong and immediate brand recognition at a global scale.
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  – As franchisees, the owners benefit from powerful online and offline distribution networks and marketing platforms, supported by preferential agreements negotiated at global level.
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  – Franchised hotels automatically become part of a loyalty programme with hundreds of millions of members, instantly positioning the property on the map across all five continents.

2. Business Risk Mitigation

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  – Franchised hotels benefit from a significantly higher probability of success than independent hotels. By adopting a proven and recognised concept, owners benefit from higher RevPAR levels, typically above market average.
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  – Moreover, franchisees receive ongoing training, know-how and technical support from the selected brand.
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  – Hotel owners can combine the independence and agility of an SME or family-owned business with the operational excellence and continuous investment in technology of a top-10 global hotel group.

3. Greater Value Upside for the Asset

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  – If we look at the balance sheet, securing financing becomes much easier when operating under a globally recognised franchise, and Spanish banks are increasingly familiar with — and supportive of — this contractual model.
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  – The asset value of a hotel is higher when it operates under a strong global franchise than when it is independent.
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  – If the owner decides to sell the hotel, franchising provides an additional advantage: a franchised hotel is more attractive and more liquid for both domestic and international investors than an independent property.

In short, hotel franchising allows owners to combine independence with the commercial strength, operational know-how and global reach of leading hotel brands. When applied to the right asset and market, the franchise model becomes a powerful lever to reduce risk, enhance profitability and maximise long-term asset value.