Hotel & Motel Management - February 18, 2008 - (Page 18)

18 Special Report INTERNATIONAL FRANCHISING H&MM February 18, 2008 | HotelMotel.com Hotel companies cultivate relationships By Heather Gunter ASSOCIATE EDITOR VANTAGE HOSPITALITY GROUP inding the right partners is one of the biggest obstacles to international expansion. “Whether it’s a master license agreement, a development agreement or a joint venture, when you F form that agreement, it’s like a marriage,” said Bill Hanley, partner and managing director of international development, Vantage Hospitality Group, the parent company of Americas Best Value Inn and The Lexington Collection. “They have to believe in us, we have to believe in them.” Vantage looks for someone who’s ﬁnancially sound, understands the local market and can put in the infrastructure to support development, Hanley said. “We have done a partnership in China,” he said. “We have a small piece of the actual development operating company. That person has a master license agreement with us for both brands.” In the Europe, Middle East and Africa region, the company is on the verge of completing a development agreement, and it’s having ongoing discussions with a few entities in India. Growth is difﬁcult without The ﬁrst Chinas Best Value Inn opened in Shanghai last year, and two more will open in 2008 under a master license agreement. strong local support. “When we go into a country, we look to form an alliance, a partnership, a joint venture with someone in that country or region that knows how business is conducted, knows the customers, knows the banks,” Hanley said. “Doing it by yourself is virtually impossible. It is time consuming and expensive.” Mark Pearce, v.p., international operations, Choice Hotels In- Hanley VANTAGE Pearce CHOICE ternational, said the company is restructuring its approach. “We were operating all of Europe through master franchise relationships,” Pearce said. “Really it was a market which was strategically aligned that we would be in a better position to operate on a direct basis.” Building master franchise relationships is done selectively. “Scandinavia, for example, operates through a master franchise relationship and they’ve done a fantastic job of building the Choice brands over the last few years,” he said. “We’ve entered recently into a new 20-year agreement with them.” Ireland is in a similar situation, and Choice signed a new MFA with its partner last year. CIRCLE NO. 113 http://HotelMotel.com http://hiltonfranchise.com http://hiltonmanagementservices.com http://hiltonmanagementservices.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - February 18, 2008

Hotel & Motel Management - February 18, 2008 Contents ALIS Attendees: Bumpy Road Ahead Denihan Expands with James Hotel Purchase AAA Updates its Diamond Rating Guidelines Perspective Letters to the Editor Legal FAQ Satisfaction Trends Sales Clinic HotelWorld Update Trends & Stats Locally Grown Food Gains Popularity Companies Cultivate International Ties Wireless Internet Access Opens Up Possibilities Ice Machine Care Improves Efficiency, Performance The Importance of F&B to Leisure Travelers Lamps/Lighting Transactions Events Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - February 18, 2008

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