On the basis of ownership of a hotel, they can be divided into the following categories:
Ownership
Proprietary property is the direct ownership of one or more properties by an individual or company. Small accommodation properties by person or company. Small lodging properties owned and operated by a couple or family are jointly owned.
franchise
Before we talk about the franchise, let's understand the following terminology related to the franchise:
Franchise It is the authorization given by a company to an individual of another company to sell its unique products/services and to use its brand for a certain period of time and in a certain place in accordance with the principles given by that company.
Franchisor Franchisor is the company that owns the trademark, product, franchised business format.
Franchisee The franchisee is the company or person to whom the franchisee gives the right to do business under the agreed terms and conditions.
Franchising An ongoing relationship in which the franchisor provides a licensed privilege to do business and also provides assistance with organisation, training, merchandising and management in return for a fee of the franchise.
In the hospitality industry, we frequently encounter many large chains operating on a franchise basis. In this type of contract that is mutually beneficial for both parties, the franchisor allows the franchisee to use the company's ideal methods, trademarks and brand logo to conduct business.
management contract
Managing a hotel requires professional expertise. A new entrepreneur with little or no business experience can safely choose to become a franchisee of any established hotel chain.
Running the business can still be a challenge, as the franchisor provides a solid image, a tested and successful operating system, training program, marketing, advertising and reservation system, but not an experienced manager and executive staff. employees necessary to run the business on a daily basis.
To bridge the gap, management contract companies have sprung up. These companies have the necessary expertise to manage hotels. They operate on the basis of management fee and sometimes a percentage of gross income.
Timeshare Hotels
Timeshare hotels, also called vacation-interval hotels, are a new concept in the hospitality industry. As the name suggests, it entails purchasing a tourist accommodation in a popular destination for a certain time frame within a year.
The buyer can then occupy the property or rent the unit to other vacationers if they are unable to use the facilities for the specified period. They have to make a one-time payment for the time slot and an annual fee to cover maintenance and related expenses, and if they don't use the time slots they have to get a share of the revenue.
Apartment Hotels
Condominium hotels are similar to timeshare hotels, expecting condominium hotels to have a single owner rather than multiple owners sharing a hotel. In a condominium hotel, the owner notifies the management company when they will occupy the unit.
The management company is free to lease the unit for the remainder of the year, and this income goes to the owner. The owner is responsible for landscaping, cleaning of common areas, water and power supply, etc. It usually pays a monthly or annual maintenance fee to the management company that deals with the property.
