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Vineeth Purushothaman

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Pulled together franchise fee data across IHG, Marriott, Hilton, Wyndham, and Accor from public sources. The numbers are interesting especially if you are a hotel owner/operator. Total fees now… | Vineeth Purushothaman

📈 Pulled from public sources, franchise fees for IHG, Marriott, Hilton, Wyndham, and Accor average 10-12% of gross room revenue. Additional costs include PIP requirements of $10K-$50K per room. Loyalty program fees are rising by 3.9% annually, outpacing the 2.7% increase in room revenue. The infographic details costs for royalties, marketing, and reservation systems, with variations in F&B royalties and technology bundling. Know these differences before franchise talks.
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IHG just disclosed that ancillary services are driving their fee margins to record highs—61.2% in Q4, up 190 basis points year-over-year. Wyndham's ancillary revenues are growing at 19% while their… | Vineeth Purushothaman

💸 IHG's Q4 fee margins soared to 61.2%, a 190 basis point increase year-over-year. Wyndham's ancillary revenues are up 19%, but their core room revenue is stagnant. Accor may spin off Ennismore due to its lifestyle hotels generating triple the fees of traditional properties. In 2023-2024, major chains are pursuing EV charging, wellness technology, and alternative accommodations. Over $500 million was invested in hotel ancillary technology last year. Are we missing out on ancillary revenue opportunities?
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