HVS Survey Reveals 88% of Middle East and Africa’s Hotel Agreements Expected to Shift Towards Franchise Models
🏨 HVS surveyed Middle East and Africa hotel industry stakeholders with portfolios totaling 305,500 keys across 1,313 hotels. Results showed 63.6% foresee more franchise agreements in three years, rising to 88% when weighted. Luxury hotels report management fees at 1.5%-2% of revenue, differing from upper-upscale's varied responses. Only 12.9% have HMA-to-franchise conversion rights, 10.5% termination on sale. In Egypt, 54% of hotels are independent. Saudi Arabia's diverse market favors both HMAs and flexible models.
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