Hotel franchise companies (‘the brands/chains’) charge their franchisees a series of fees that cover a variety of services provided by the franchisor.
In our firm’s annual Trends® in the Hotel Industry survey of operating statements, PKF Hospitality Research, (PKF-HR is a CBRE company) captures four of these fees discretely:
Advertising and Marketing Assessments
Loyalty Program Fees
To gain a better understanding of the fees paid by hotel owners to their franchisors, PKF-HR analyzed the operating statements of 1,304 chain-affiliated hotels in our Trends® database that reported franchise fee payment data each year from 2007 through 2013.