Independent hotel operators form franchise agreements with global brands due to high-interest rates, increasing global conversions from 10-20% to 40% of new rooms.
Independent hotel operators and global brands link up in franchise agreements due to high-interest rates slowing hotel construction. This benefits both parties: big chains gain new hotels while unbranded hotels access more bookings and cheaper financing. As a result, global conversions account for 40% of new rooms entering the system, compared to the previous 10-20%. Marriott International and Accor have both seen increased conversions in their hotel openings.
March 25, 2024
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