Hotel Franchise Market Synopsis

Hotel Franchise Market Size Was Valued at USD 43.0 Billion in 2023, and is Projected to Reach USD 83.9 Billion by 2032, Growing at a CAGR of 7.7% From 2024-2032.

Hotel franchises involve the sale of rights to the usage of the franchise name and brand and the provision of organizational structure, promotion methods, management, and reservation services to the independent hotel operator (franchisee) who owns the physical facilities. Instead, the fee is paid by the franchisee and the operations of the franchised business need to follow certain standards and guidelines as set by the franchisor. This way, the franchisor is able to reach out to more market while the franchisee is provided an opportunity to open a business under the cover of a recognized name and can also use the franchisor’s materials to improve his business.

• The industry in which the hotel franchises operates is actively developing and constantly changing, and is a part of the total hospitality industry and offers a significantly vast variety of brands and models. The future of this market is promising and steady growth has been observed over the past years due to rising travel and transportation needs, globalisation and established brand appeal to travel consumers and investors. Marriott, Hilton, and IHG are some of the leading hotel franchisors globally, and they currently display an incredibly diverse portfolio of goods and services, ranging from luxurious hotel brands to cheap motel chains.
• First, technological developments have autonomously increased the change in the hotel franchise industry and the new generation of bookings, apps, and digital campaigns for new customers. There is also emergence of niche and lifestyle brands that add a different perspective to this market in appealing to the dynamic traveller. However, likely threats that may cause the market to stagnate include instability in the economic cycles as well as changes in the regulating legal frameworks governing the operations of the hotel franchises, future trends point to a steady growth of the hotel franchise market through innovation, consumer preferences and business collaborations within the market.

Hotel Franchise Market Trend Analysis

Increasing focus on sustainability and eco-conscious practices

• According to the recent changes in the conscience of travelers who are also tourists, today, special attention is paid to the observance of energy conservation, minimization of the rate of waste production, and environmentally friendly products purchasing. As a result of this trend, hotel franchisors have embraced green efforts in their facilities by adopting initiatives such as use of energy conservation items, recycling, and locally purchased gadgets. Further, some brands are getting such accreditation in a bid to approve its green standards, popular among tourists seeking environmentally-friendly services, and marketing itself as a more sustainable trademark. This trend is in line with the general move towards the right type of tourism and proves the company’s belief in the positive changes corporate social responsibility can bring to the hospitality business.

Targeting emerging markets with untapped potential for hospitality development

• With the ever increasing globalization of economies and travel, new driving forces of economy mobility include parts of Asia, Africa and Latin America, with cities growing in size and per-capita disposal income. This opens the doors for the franchisors of hotels to spread their wings into such fledgling markets to provide services for the domestic tourists as well as the foreign tourists.
• With first mover advantages, hotel franchisors can gain access to these fast-growing markets and can tap on the need for more better quality hotels shortly after their entry into a particular market, riding on the reputation and popularity of its franchise brand. Furthermore, the relationship between the franchisor and the local investors and developers would help them understand the environmental standards and culture, hence operating successfully in the market. Similar to the previous point, this expansion into emerging markets not only cuts across the diversified source of revenues but also positively impacts the growth of economies and increases employment opportunities and the delivery of social amenities in these countries.

Hotel Franchise Market Segment Analysis:

Hotel Franchise Market Segmented on the basis of Chain value and Hotel Type.

By Chain Value, Economy segment is expected to dominate the market during the forecast period

• Market for hotel franchise has also been discussed in the following points, several factors make the economic segment to have a much higher growth in the forecast period The following are the factors: Due to the outside pressure and the need to cut down costs, the economy segment corresponds with the need to find a cheap but comfortable and well-equipped hotel room for a short-term stay. In addition, economy segment targets almost all types of travelers like business travellers, leisure travellers, families travellers and so forth, thus broadening the market base. Hotel franchisors are realizing the possible growth within this segment and are therefore steadily branching out their economy brands to cater for this market.
• •Also, the economy segment being measured by life occupancy at a higher level and better performance during the crises, this makes the segment to be attractive to both the franchisors and the franchisees. All in all, the dominance of the economy segment of the hotel franchise market indicates that the concept of value as the guiding focus of delivering services is crucial for addressing the requirements of modern tourists effectively.

By Hotel Type, Extended Stay segment expected to held the largest share

• Changes in the hotel franchise market indicate that a greater market share will be shaped in the category of extended stay franchise. The main types of the staying are for the guests who needs the hotel’s accommodation for longer than a week, even for months which may require special services and facilities for them. This segment is undergoing rapid growth and includes a multitude of factors, including corporate relocations, business projects, and leisure travel destinations.
• Also, emergence of work from home, digital nomads has created the consciousness for long term flexible bookings which has played a positive role in the extended stay market. Designer brands focusing on the extended stay segment themselves into convert this trend into an opportunity by providing comfortable as well as convenient lodgings with some common amenities like full functional kitchen along with workstations and free services. When travelers turn more and more into the comfortable and convenient hotel treatment at moderate cost, the further development of the extended stay segment remains promising for franchised hotel brands and investors.

Hotel Franchise Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast period

• The Asia Pacific region emphasizes the hotel franchise market more than any other industry as it grows and dominates the market in the forecast period. With Asia Pacific economies growing bigger, growing population being urbanized, thus sizeable population becoming the middle class, the demand for hospitality services is on an upward trend. Most of these renowned players within the hotel franchise industry are steadily pursuing an increased market share within this region due to the significant opportunities in growth and market share.
• Also, as tourism inches upwards resulting to more visitors heading towards Asia Pacific destinations, there is a shift in customer demand towards identifying actual brand names in hotels which will provide similar level of service. This presetns a seed ground for hotel franchisors to set a firm ground in strategic locations such as China, India, Japan, and South Asia to meet the emerging trends and needs of travelers in these regions. The various factors detailed above, means that Asia Pacific will become the market to beat, in the international hotel franchise market, controlling innovation, investment and expansion for the forecasted period.

Active Key Players in the Hotel Franchise Market

• Marriott International (United States)
• Hilton Worldwide Holdings Inc. (United States)
• InterContinental Hotels Group (IHG) (United Kingdom)
• Wyndham Hotels & Resorts (United States)
• Accor (France)
• Choice Hotels International (United States)
• Best Western Hotels & Resorts (United States)
• Hyatt Hotels Corporation (United States)
• Radisson Hotel Group (Belgium)
• Carlson Rezidor Hotel Group (United States)
• Jinjiang International Holdings Co., Ltd. (China)
• Shangri-La Group (Hong Kong)
• Meliá Hotels International (Spain)
• Four Seasons Hotels and Resorts (Canada)
• Minor International (Thailand)
• Other key Players

Chapter 1: Introduction
 1.1 Scope and Coverage

Chapter 2:Executive Summary

Chapter 3: Market Landscape
 3.1 Market Dynamics
  3.1.1 Drivers
  3.1.2 Restraints
  3.1.3 Opportunities
  3.1.4 Challenges
 3.2 Market Trend Analysis
 3.3 PESTLE Analysis
 3.4 Porter's Five Forces Analysis
 3.5 Industry Value Chain Analysis
 3.6 Ecosystem
 3.7 Regulatory Landscape
 3.8 Price Trend Analysis
 3.9 Patent Analysis
 3.10 Technology Evolution
 3.11 Investment Pockets
 3.12 Import-Export Analysis

Chapter 4: Hotel Franchise Market by Chain Value
 4.1 Hotel Franchise Market Snapshot and Growth Engine
 4.2 Hotel Franchise Market Overview
 4.3 Economy
  4.3.1 Introduction and Market Overview
  4.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.3.3 Key Market Trends, Growth Factors and Opportunities
  4.3.4 Economy: Geographic Segmentation Analysis
 4.4 Luxury
  4.4.1 Introduction and Market Overview
  4.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.4.3 Key Market Trends, Growth Factors and Opportunities
  4.4.4 Luxury: Geographic Segmentation Analysis
 4.5 Midscale
  4.5.1 Introduction and Market Overview
  4.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.5.3 Key Market Trends, Growth Factors and Opportunities
  4.5.4 Midscale: Geographic Segmentation Analysis
 4.6 Upper Upscale
  4.6.1 Introduction and Market Overview
  4.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.6.3 Key Market Trends, Growth Factors and Opportunities
  4.6.4 Upper Upscale: Geographic Segmentation Analysis
 4.7 Upscale
  4.7.1 Introduction and Market Overview
  4.7.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.7.3 Key Market Trends, Growth Factors and Opportunities
  4.7.4 Upscale: Geographic Segmentation Analysis
 4.8 Upper Midscale
  4.8.1 Introduction and Market Overview
  4.8.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.8.3 Key Market Trends, Growth Factors and Opportunities
  4.8.4 Upper Midscale: Geographic Segmentation Analysis

Chapter 5: Hotel Franchise Market by Hotel Type
 5.1 Hotel Franchise Market Snapshot and Growth Engine
 5.2 Hotel Franchise Market Overview
 5.3 Extended Stay
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Extended Stay: Geographic Segmentation Analysis
 5.4 Residence
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Residence: Geographic Segmentation Analysis
 5.5 Select Service
  5.5.1 Introduction and Market Overview
  5.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.5.3 Key Market Trends, Growth Factors and Opportunities
  5.5.4 Select Service: Geographic Segmentation Analysis
 5.6 Others
  5.6.1 Introduction and Market Overview
  5.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.6.3 Key Market Trends, Growth Factors and Opportunities
  5.6.4 Others: Geographic Segmentation Analysis

Chapter 6: Company Profiles and Competitive Analysis
 6.1 Competitive Landscape
  6.1.1 Competitive Benchmarking
  6.1.2 Hotel Franchise Market Share by Manufacturer (2023)
  6.1.3 Industry BCG Matrix
  6.1.4 Heat Map Analysis
  6.1.5 Mergers and Acquisitions
  
 6.2 MARRIOTT INTERNATIONAL(UNITED STATES)
  6.2.1 Company Overview
  6.2.2 Key Executives
  6.2.3 Company Snapshot
  6.2.4 Role of the Company in the Market
  6.2.5 Sustainability and Social Responsibility
  6.2.6 Operating Business Segments
  6.2.7 Product Portfolio
  6.2.8 Business Performance
  6.2.9 Key Strategic Moves and Recent Developments
  6.2.10 SWOT Analysis
 6.3 HILTON WORLDWIDE HOLDINGS INC(UNITED STATES)
 6.4 INTERCONTINENTAL HOTELS GROUP(IHG)(UNITED KINGDOM)
 6.5 WYNDHAM HOTELS & RESORTS(UNITED STATES)
 6.6 OTHER ACTIVE PLAYERS

Chapter 7: Global Hotel Franchise Market By Region
 7.1 Overview
 7.2. North America Hotel Franchise Market
  7.2.1 Key Market Trends, Growth Factors and Opportunities
  7.2.2 Top Key Companies
  7.2.3 Historic and Forecasted Market Size by Segments
  7.2.4 Historic and Forecasted Market Size By Chain Value
   7.2.4.1 Economy
   7.2.4.2 Luxury
   7.2.4.3 Midscale
   7.2.4.4 Upper Upscale
   7.2.4.5 Upscale
   7.2.4.6 Upper Midscale
  7.2.5 Historic and Forecasted Market Size By Hotel Type
   7.2.5.1 Extended Stay
   7.2.5.2 Residence
   7.2.5.3 Select Service
   7.2.5.4 Others
  7.2.6 Historic and Forecast Market Size by Country
   7.2.6.1 US
   7.2.6.2 Canada
   7.2.6.3 Mexico
 7.3. Eastern Europe Hotel Franchise Market
  7.3.1 Key Market Trends, Growth Factors and Opportunities
  7.3.2 Top Key Companies
  7.3.3 Historic and Forecasted Market Size by Segments
  7.3.4 Historic and Forecasted Market Size By Chain Value
   7.3.4.1 Economy
   7.3.4.2 Luxury
   7.3.4.3 Midscale
   7.3.4.4 Upper Upscale
   7.3.4.5 Upscale
   7.3.4.6 Upper Midscale
  7.3.5 Historic and Forecasted Market Size By Hotel Type
   7.3.5.1 Extended Stay
   7.3.5.2 Residence
   7.3.5.3 Select Service
   7.3.5.4 Others
  7.3.6 Historic and Forecast Market Size by Country
   7.3.6.1 Bulgaria
   7.3.6.2 The Czech Republic
   7.3.6.3 Hungary
   7.3.6.4 Poland
   7.3.6.5 Romania
   7.3.6.6 Rest of Eastern Europe
 7.4. Western Europe Hotel Franchise Market
  7.4.1 Key Market Trends, Growth Factors and Opportunities
  7.4.2 Top Key Companies
  7.4.3 Historic and Forecasted Market Size by Segments
  7.4.4 Historic and Forecasted Market Size By Chain Value
   7.4.4.1 Economy
   7.4.4.2 Luxury
   7.4.4.3 Midscale
   7.4.4.4 Upper Upscale
   7.4.4.5 Upscale
   7.4.4.6 Upper Midscale
  7.4.5 Historic and Forecasted Market Size By Hotel Type
   7.4.5.1 Extended Stay
   7.4.5.2 Residence
   7.4.5.3 Select Service
   7.4.5.4 Others
  7.4.6 Historic and Forecast Market Size by Country
   7.4.6.1 Germany
   7.4.6.2 UK
   7.4.6.3 France
   7.4.6.4 Netherlands
   7.4.6.5 Italy
   7.4.6.6 Russia
   7.4.6.7 Spain
   7.4.6.8 Rest of Western Europe
 7.5. Asia Pacific Hotel Franchise Market
  7.5.1 Key Market Trends, Growth Factors and Opportunities
  7.5.2 Top Key Companies
  7.5.3 Historic and Forecasted Market Size by Segments
  7.5.4 Historic and Forecasted Market Size By Chain Value
   7.5.4.1 Economy
   7.5.4.2 Luxury
   7.5.4.3 Midscale
   7.5.4.4 Upper Upscale
   7.5.4.5 Upscale
   7.5.4.6 Upper Midscale
  7.5.5 Historic and Forecasted Market Size By Hotel Type
   7.5.5.1 Extended Stay
   7.5.5.2 Residence
   7.5.5.3 Select Service
   7.5.5.4 Others
  7.5.6 Historic and Forecast Market Size by Country
   7.5.6.1 China
   7.5.6.2 India
   7.5.6.3 Japan
   7.5.6.4 South Korea
   7.5.6.5 Malaysia
   7.5.6.6 Thailand
   7.5.6.7 Vietnam
   7.5.6.8 The Philippines
   7.5.6.9 Australia
   7.5.6.10 New Zealand
   7.5.6.11 Rest of APAC
 7.6. Middle East & Africa Hotel Franchise Market
  7.6.1 Key Market Trends, Growth Factors and Opportunities
  7.6.2 Top Key Companies
  7.6.3 Historic and Forecasted Market Size by Segments
  7.6.4 Historic and Forecasted Market Size By Chain Value
   7.6.4.1 Economy
   7.6.4.2 Luxury
   7.6.4.3 Midscale
   7.6.4.4 Upper Upscale
   7.6.4.5 Upscale
   7.6.4.6 Upper Midscale
  7.6.5 Historic and Forecasted Market Size By Hotel Type
   7.6.5.1 Extended Stay
   7.6.5.2 Residence
   7.6.5.3 Select Service
   7.6.5.4 Others
  7.6.6 Historic and Forecast Market Size by Country
   7.6.6.1 Turkey
   7.6.6.2 Bahrain
   7.6.6.3 Kuwait
   7.6.6.4 Saudi Arabia
   7.6.6.5 Qatar
   7.6.6.6 UAE
   7.6.6.7 Israel
   7.6.6.8 South Africa
 7.7. South America Hotel Franchise Market
  7.7.1 Key Market Trends, Growth Factors and Opportunities
  7.7.2 Top Key Companies
  7.7.3 Historic and Forecasted Market Size by Segments
  7.7.4 Historic and Forecasted Market Size By Chain Value
   7.7.4.1 Economy
   7.7.4.2 Luxury
   7.7.4.3 Midscale
   7.7.4.4 Upper Upscale
   7.7.4.5 Upscale
   7.7.4.6 Upper Midscale
  7.7.5 Historic and Forecasted Market Size By Hotel Type
   7.7.5.1 Extended Stay
   7.7.5.2 Residence
   7.7.5.3 Select Service
   7.7.5.4 Others
  7.7.6 Historic and Forecast Market Size by Country
   7.7.6.1 Brazil
   7.7.6.2 Argentina
   7.7.6.3 Rest of SA

Chapter 8 Analyst Viewpoint and Conclusion
8.1 Recommendations and Concluding Analysis
8.2 Potential Market Strategies

Chapter 9 Research Methodology
9.1 Research Process
9.2 Primary Research
9.3 Secondary Research