A hotel franchise is a business model where a person or company (the franchisee) runs a hotel using the brand, and infrastructure, along with the assistance of a bigger company (the franchisor).
This set-up lets the franchisee benefit from the franchisor’s brand recognition, promotional efforts, and operational abilities while still having some freedom as a business proprietor.
An attractive location is very important for hotel franchises and useful for making the most money. So, before setting up a hotel franchise, both the owner and the franchisor should spend time and money choosing a location.
After that, they should focus on getting licenses. Then, the new owner of the hotel should put together a group of employees to run the hotel and the restaurant. Hotel franchises also need skilled employees to do well.
So, it makes sense to take the time to hire the right people, bring in a skilled chef, and train the people who run the hotel. There is a huge international group of hotels, like Oyo, Hyatt or Wyndham Hotels & Resorts, that has a strong brand name and good marketing and promotion plans. If you have the capital to invest in this kind of business, your hotel will quickly get clients and begin to earn revenue from the beginning.
Also Read: What Is The Average Hotel Business Profit Margin In 2024?
List of Top 9 Hotel Franchise In India 2024
Founded Year- 2016
Franchising Since- 2018
Initial Capital Investment- INR ₹2 – ₹5 Lakhs
Franchise Fees- ₹5 Lakhs
Royalty Fees- 10%
OYO is a rapid growing hotel company founded in 2016. Oyo franchise model is the combination of technology, operation support and brand recognition which helps to build a relationship between Oyo and its franchise partner.
OYO is one of the Top 9 Best Hotel Franchise In India and a well-known name in the hotel business. Its popularity can help a franchisee to get more guests. Being a fastest and rapid growing hotel company in India, business owners can franchisee Oyo Hotels. Here is some reason why choose Oyo for franchise.
OYO is a well-known name in the hotel industry, and that popularity can help a franchise property get more guests. Higher vacancy rates are caused in part by the fact that people often choose OYO because of its consistent quality and services.
Technology is used by OYO to make plans, reservations, and managing properties easier. When owners use a centralized technology platform, their businesses run more smoothly. It is also lowers their administrative costs and improves the overall guest experience. Higher room rates are caused in part by the fact that travellers often choose OYO because of its consistent quality and services.
OYO helps its franchise partners to run their businesses and also gives them advice. It includes making sure that each property meets the brand’s quality standards through ongoing help, training programs for staff, and standard working procedures.
OYO gives franchisees the chance to reach customers all over India. This publicity across India can help franchise properties get more bookings and make more money.
It’s important to remember that even though OYO’s franchise strategy has worked for many, your own results may be different depending on where you are, how you manage your properties, and the state of the market. Before signing anything, people who want to become franchisees should carefully read the terms of the franchise deal and do their research.
2- Holiday Inn
Founded in- 1952
Franchising since- 1954
Franchise units- 3,730
Initial investment- ₹1.5 – ₹5.5 Crore
Initial Franchise Fee- INR 0.37 Crore
Royalty Fee- 5% – 6%
Holiday Inn is a well-known hotel brand that offers a franchise plan. It is part of the InterContinental Hotels Group (IHG). With more than 1200 rooms around the world, Holiday Inn is the most well-known hotel chain in the world. Holiday Inn was one of the first hotel groups to open in other countries.
It’s easy to relax and enjoy the amenities at a Holiday Inn. The brand offers the services that business visitors need like restaurants with room service, outdoor pools, gyms, and lounges with comfy furniture. Here is some reason why Holiday Inn franchise is profitable.
- Trust & Brand Recognition
Holiday Inn is a well-known name around the world that is known for its high standards of quality and service. Travelers believe it a lot because it has been around for a long time and always tries to make guests happy. This familiarity with the company often leads to more bookings and repeat business.
- Global Reservation System
The global reservation method implemented by IHG is helpful for Holiday Inn franchisees. By linking the property to a huge network of travel agencies, online travel sites, and the IHG Rewards Club, this centralized method helps get more room reservations from a wide range of guests.
Holiday Inn keeps very high standards for the quality of its franchise sites. This keeps the quality of the experience constant for guests, which leads to good reviews, word-of-mouth recommendations, and more business.
Guests are more likely to stay at IHG hotels again and again if they join their reward program, like the IHG Rewards Club. Franchisees benefit from return bookings and the chance that happy loyalty program members will write good reviews and pass on the business.
Interested Holiday Inn proprietors should do a lot of research, read and understand the terms and conditions of the agreement, and look at the local market to see how profitable the business could be before signing any legal documents.
3- Marriott International Hotel
Founded in- 1927
Franchising since- 1927
Franchise units- 70
Initial investment- INR ₹37- ₹59 Crore
Marriott International was launched in 1967, and that same year, it started selling businesses. Each hotel in this chain is known all over the world. Its main office is in Maryland’s Bethesda. If you are interested in franchising a hotel property business in India, Marriott International is one of the Top 9 Best Hotel Franchise In India to invest in. There are several reasons why Marriott International hotel companies are so successful. Let’s take a look.
Marriott invested a lot of money into promotion for both its brands and its properties. Marriott’s global marketing campaigns support the Marriott brand and help franchisees by making more people aware of the brand and getting more reservations.
- Unique amenities and programs
Marriott is always adding new services and programs to make the stay of their guests better. This dedication to new ideas keeps the brand competitive, brings in more customers, and makes people want to buy from them again.
Marriott is a name that is known all over the world for luxury, quality, and great service. Higher occupancy rates are due to the strong brand recognition and good image. Travelers tend to choose well-known and trusted hotel brands.
Because Marriott Hotel is present all over the world, franchisees can gain from economies of scale. This includes having the power to negotiate better prices with sellers as a group, sharing resources, and saving money by being a part of a big hospitality network.
4- Lemon Tree Hotel
Founded in- 2002
Franchising since- 2009
Initial investment- Not Mentioned
Initial Franchise Fee- Not Mentioned
Royalty Fee- Not Mentioned
With a majority stake in both owned and leased rooms, Lemon Tree Hotels is India’s largest mid-priced hotel group and third-largest hotel company overall. Lemon Tree Hotels works with clients in the luxury segment and the mid-market, which is made up of the middle, low-end, and upper-middle clients. Their services are unique, better, and worth the money compared to others. Franchising Lemon Tree Hotel is very profitable since the brand has many advantages.
Marriott is a name that is known all over the world for luxury, quality, and great service. Higher occupancy rates are due to the strong brand recognition and good image. Travelers tend to choose well-known and trusted hotel brands.
The Marriott Bonvoy loyalty program gives guests a number of benefits and bonuses. The loyalty program helps franchisees because it brings in return customers, makes guests happier, and builds brand loyalty.
Marriott has very high standards for the quality of its buildings. These standards must be followed by franchisees to make sure that guests always have a good time. The brand’s good image is kept up by this dedication to quality.
5- Hyatt Hotel
Founded in- 1957
Franchising since- 1962
Franchise units- 719
Initial investment- ₹ 3.5 – ₹ 11.5 Crore INR
There are over a dozen well-known hotel brands owned by Hyatt Hotel Corporation. These include Andaz and Park Hyatt, Grand Hyatt and Hyatt Regency, as well as many high-end boutique hotels like Thompson, Alila, Destination, Joie de Vivre, and others. Hyatt has more than 800 hotels in 50 different countries. In the past few years, Hyatt has started to focus more on marketing and hotel management based on the idea of “ease of assets” instead of owning buildings and land directly. Let’s see why Hyatt Hotel franchising is profitable.
- Various Brands Involvement
Hyatt has a lot of different brands that appeal to different types of travellers and market groups. There are high-end brands like Park Hyatt, Grand Hyatt, and Andaz in this group, as well as mid-range and select-service names like Hyatt Place and Hyatt House. Because there are so many brands, franchisees can pick one that fits their area and target market.
- Technical Help and Operational Training
To help franchisees run their businesses, Hyatt offers full training classes and ongoing operational support. As part of this support, advice is given on things like service standards, operating efficiency, and staff training, all of which help the property be well-run and successful.
- Innovative Guest Experiences
Hyatt is always coming up with new ideas and events to make guests’ stays better. This dedication to new ideas helps the brand stay competitive, get reviews from a wide range of customers, and keep getting good feedback.
Hyatt hotel is dedicated to deliver high standard quality and service across all of its places as part of its dedication to perfection. Franchisees must follow these standards, which ensure a uniform and high-quality guest experience that leads to good reviews, word-of-mouth recommendations, and overall success.
6- Treebo Hotel
Founded in- 2015
Franchising since- 2015
Franchise units- 100 – 200
Initial investment- ₹2.6 – ₹5.5 Crore INR
Royalty Fees- Not Mentioned
Treebo is one of the biggest budget hotel groups in India. It has more than 250 hotels in 50 places, with more than 6,000 rooms. As a tech-savvy hotel company, we want to combine a strong focus on the guest with the latest hospitality technology so that our guests get the best value for their money and have the best stays possible at our hotels. Treebo has worked hard to make sure that the franchise partners and their customers have a smooth business experience. Let’s see why in 2024 Treebo Hotel franchising is profitable.
Treebo Hotels uses technology to run its business more efficiently and make things easier for its customers. Features like mobile apps, online booking sites, and integrated reservation systems can improve the overall guest experience and make running a hotel easier, which could save money.
When an organization runs national and local advertising campaigns, those campaigns help the franchisees. A good marketing strategy helps people know about your business and brings in a steady stream of customers.
In the budget and affordable hotel market, Treebo Hotels has worked hard to build a well-known name. Customers believe in the brand’s commitment to quality service and standard amenities, which leads to repeat business and good reviews.
7- Fab Hotels
Founded in- 2016
Franchising since- 2016
Franchise units- 120 Worldwide
Initial investment- ₹ 40 – ₹50 Lakhs INR
Royalty Fees- 5%
There are more than 400 hotels in India under this name in different cities. This is one of India’s hottest hotel companies right now. Fab hotel franchise requires a space between 250 and 500 square feet. As part of its expansion plans, the Fab hotel is desperately seeking franchisees in India. As a Top 9 Best Hotel Franchise In India, Fab Hotels have a strong foothold in all the major cities, such as Delhi, Goa, Mumbai, Maharashtra, and more.
- Comprehensive Support & Training
FabHotels provides its franchisees with a lot of help. The brand makes sure that franchisees have all the information and tools they need to run a successful hotel. This is done through initial training programmes and ongoing operational advice. All of this support helps make sure that all of FabHotels’ properties meet the same high standards for quality and speed.
The Fab Hotels has become a major player in the mid-range hotel market and one of the Top 9 Best Hotel Franchise In India. A lot of people are buying the brand, which shows that it can do well in the competitive hospitality business. Potential owners can be sure that the brand will be around for a long time and be well-received by customers because of its track record.
Fab Hotels uses technology to make their business run more smoothly and give guests a better experience overall. The brand’s use of new technologies for reservations, check-ins, and interactions with customers not only makes hotel operations run more smoothly, but it also fits with current trends, drawing tech-savvy travellers and giving franchisees an edge in the market.
FabHotels offers a range of franchise models so that possible partners can pick the one that works best for them and their market. The brand also spends a lot of money on strong marketing campaigns at both the national and local levels. These campaigns help people see the brand and make reservations. Franchisees can build a strong local presence with the help of marketing support, and the FabHotels name is known all over the world.
8- Wyndham Hotels & Resorts
Founded in- 1981
Franchising since- 1996
Franchise units- 120 Worldwide
Initial investment- ₹8.5 – ₹10.5 Crore INR
Royalty Fees- 5%
Wyndham Hotels and Resorts is an American hotel and resort company and has branch hotels and resorts almost everywhere all over world. It is one of the Top 9 Best Hotel Franchise In India.
Wyndham hotels has places in China, Mexico, the Caribbean, Indonesia, Turkey, Germany, the UK, Colombia, Ecuador, Turkey, the USA, and Margarita Island in Venezuela. This article will help you if you are a hotel owner that you want to turn into a Wyndham hotel. To make things easier, Wyndham Hotels set up a large support system for their franchisee.
Wyndham has many names in India, such as Ramada, La QUINTA, Microtel, Super 8, and more. Wyndham Hotels & Resorts provided franchise plan has worked well for many hotel owners. There are a few main reasons why Wyndham Hotels contracts are so successful.
Wyndham’s global reservation system links franchise properties to a number of different methods of distribution, such as online booking agencies and the Wyndham Rewards loyalty program. This makes franchise sites more visible, brings in more bookings, and keeps customers coming back.
In the hotel business, Wyndham is a popular and reputable name. The brand is known all over the world, and its stable includes many well-known names, such as Wyndham, Ramada, and Days Inn. This brings in a wide range of customers, which helps keep the hotels full.
- Reliable franchise models
Wyndham has different franchise plans so that property owners can pick one that works best for their area, target market, and investment goals. This freedom makes it more likely that the business will make money.
Wyndham makes sure that all of its franchise meet the same high standards of quality, so guests always have a good time. Customers are happy, give good reviews, and come back for more because of this dedication to excellence.
9- Royal Orchid
Founded in- 1987
Franchising since- 2016
Franchise units- 10 – 20
Initial investment- ₹2.5 – ₹3.5 Crore INR
Royalty Fees- 5%
Royal Orchid Hotels is known for its high level of design and one of the Top 9 Best Hotel Franchise In India. It has a wide range of business hotels, from high-end 5-star hotels to cheap business hotels. Royal Orchid Hotels is one of India’s fastest-growing hotel brands right now. As India’s franchisee for the international Ramada name, Royal Orchid has big plans to grow, such as moving into North India.
Royal Orchid Hotels has a great name and a history of doing great work in the hotel business. Because the brand has a past of providing excellent service and high-class rooms, discerning travellers trust it. When owners choose a Royal Orchid franchise, they join a brand that is known for its dedication to quality and long history in the hospitality industry.
Royal Orchid Hotels puts a lot of effort into giving its franchise partners full help and training. The brand makes sure that franchisees get all the tools and support they need to run a successful hotel, from the initial training to ongoing operating support. This dedication to helping makes Royal Orchid businesses successful and long-lasting as a whole.
Royal Orchid Hotels is known for keeping service standards high and giving guests new and interesting experiences. The brand’s dedication to offering unique amenities and personalised services that make guests’ stays special is good for franchisees. This focus on excellence helps franchise sites get good reviews from guests, keep customers, and make more money.
Conclusion
In India in 2024, hotel franchising is still a profitable business for a number of reasons. With more people travelling within and between countries, the hospitality business is still booming after the pandemic. Also, improvements in technology and a greater focus on environment make franchised hotels more competitive overall. As India’s tourism industry grows, hotel franchising remains a profitable option for business owners who want to make money and be successful in the long run.
