2015 - Asian Hospitality
Transcription
2015 - Asian Hospitality
2015 ECONOMY HOTEL FRANCHISING SUPPLEMENT FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Supplement to June AAHOA Lodging Business and Asian Hospitality AMG Asian Media & Marketing Group EMBRACE • ENGAGE • ENRIC H UK • USA • INDIA Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 37 FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Brand NameEstimated investment for new build Estimated investment for conversion Franchise Fees Aloft (136 rooms) (136 rooms) Application Upscale $15.4M - $22M $1.5M - $11.5M $60,000 plus Some F&B $450/room over 150 rooms Starwood Hotels & Resorts Worldwide Best Western Plus Not Available Not Available Affiliation Upper Midscale $42,000 plus $200/room Some F&B over 50 Best Western Premier Evaluation Upscale $4,000 Some F&B Cambria Suites (121 rooms) Not Applicable Upscale $11.2M - $13.2M Some F&B Choice Hotels International Affiliation $500/room $60,000 minimum Clarion Not (160 rooms) Upper Midscale Available $520,000 - $2.7M Some F&B Choice Hotels International Affiliation $300/room $40,000 minimum Comfort Inn (88 rooms) (80 rooms) Upper Midscale $4M - $6.8M $2m Some F&B Choice Hotels International Affiliation $500/room $50,000 minimum Country Inn & Suites (80 rooms) (80 rooms) Upper Midscale $6.8M - $8M $6.8M - $8M Breakfast plus $2,500 Carlson Rezidor Hotel Group PIP fee Courtyard (80-100 rooms) Not Available Upscale $9M-$15.7M Some F&B Marriott International Crowne PlazaHotel Not available Upscale (300 rooms) $5,000 PIP fee Full Service $27M - $50M InterContinental Hotels GroupSuites $29.6M - $51.4M Resort $33.6M - $58.4M 38 License $450/room $50,000 minimum Application $10,000 Application Greater of $75,000 or $500/room Application $500/room $75,000 minimum Capital Reserve 5% GRR* Technology $13/room* Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Royalty & Marketing Fees* Loyalty Program Fee* Reservation Fee Call center $3.85 Internet $2 GDS $5.50 OTA $2 5.5% & 4% 5% of room rate GRR Annual Dues 10 cents $1,768 plus per revenue dollar $59.45 to $2.31/room Membership per day $1.56/room plus; $1.42 to $1.24/room First 12 months 15 cents/room After 12 months Fee based on previous 12 months. GDS $7.20 OTA $4.30 5% & 4% GRR 4.5 - 5% GRR GDS $6.75 OTA 10% 4.25% GRR 4.5 - 5% GRR GDS $6.75 3.25% GRR OTA 10% 5.65% & 3.85% GRR 4.5 - 5% GRR GDS $6.75 OTA 10% 5% & 2.5% GRR 4.75% GRR 1.25% GRR 5.5% & 2% GRR 2.6% GRR 0.9% GRR and $2/room Initial fee $10/room; then 4.75% of revenue plus $4.75 per stay Voice $6.50/call GDS/OTA 10% GRR* 5% & 3% GRR Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 39 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Brand NameEstimated investment for new build Estimated investment for conversion Double Tree Hotel Not available Upscale (250 rooms) $7,500 PIP fee Full Service $35.5M - $59M Hilton Worldwide Suites (250 rooms) $38.7M - 62.4M Franchise Fees Application $75,000 plus $450/room or suite over 250 rooms EVEN Hotel (132 rooms) Not available Upper Midscale $11.4M-$18.2M $5,000 PIP fee Select Service w/ F&B InterContinental Hotels Group Application $500/room but not less than $60,000 Technology $13/room* Cap Reserve 5% GRR* Fairfield Inn (80-100 rooms) Not Available Upper Midscale $6.2M-$11M Breakfast Marriott International Application $50,000 or $400/room, whichever is greater Four Points (134 rooms) (134 rooms) Application Upscale $13.9M - $18.9M $1.6M - $11.6M $60,000 plus Full Service $450/room Starwood Hotels & Resorts over 150 rooms Worldwide Hampton Inn Hotel Not Available Application Upper Midscale (51 rooms) $7,500 PIP fee $75,000 plus Breakfast $3.7M - $6.6M $400/room Hilton Worldwide Suitesover 150 rooms (101 rooms) Computer system $7.7M - $13.5M $600-$1,200* Hilton Garden Inn (136 rooms) Not Available Upscale $11.4M - $21M $7,500 PIP fee Full Service Hilton Worldwide Application $75,000 plus $400/room over 150 rooms Computer system $815-$1,485* Holiday Inn Hotel Not available Upper Midscale (143 rooms) $5,000 PIP fee Full Service $12.7M - $17.3M InterContinental Hotels Group Resort (180 rooms) $17.4M - $23.7M Application $500/room $50,000 minimum Capital Reserve 5% GRR Technology $13/room* 40 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Royalty & Marketing Fees* Loyalty Program Fee* Reservation Fee 5% & 4% 4.25% GRR Maximum $110 per stay 18 cents Internet 10% GDS/OTA $4.50 5% & 3.5% GRR 4.75% of full folio*; $4.75 per enrollment 3rd party 10% GRR* GDS $6.30 5% & 2.5% GRR 1.75% GRR 0.8% GRR and $2.40/room 5.5% & 4% 5% per stay GRR Contact Center $4 Voice $1.79/call +$3.10 Internet $2.65 GDS $5.50 OTA $2.65 6% & 4 % 4.9% room GRR revenue $110 maximum 18 cents Internet 10% + $1.50 OTA $4.50 5.5% & 4.3% Options GRR 1. Fixed price based on ADR + maximum fee 2. 4.7% per stay w/ $110 5% & 3% GRR Initial fee $10/room; then 4.75% of revenue plus $4.75 per stay Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 18 cents Internet 10% + $1.50 OTA $4.50 maximum Voice $6.50/call GDS/OTA 10% GRR* 41 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Brand NameEstimated investment Estimated investment for new build for conversion Franchise Fees Holiday Inn Express (93 rooms) Not available Upper Midscale $7.2M - $10M $5,000 PIP fee Breakfast InterContinental Hotels Group Application $500/room $50,000 minimum Capital Reserve 5% GRR* Technology $13/room* Hotel Indigo (140 rooms) Not available Upscale $15.2M - $34M $5,000 PIP fee Some F&B InterContinental Hotels Group Application $550/room $60,000 minimum Capital Reserve 5% GRR* Technology $13/room* Hotel RL (200 room) (200 room) Upper Midscale $31M - $39M $1.5M-$5M Full Service Red Lion Hotels Corp. Application $50,000 Revenue Management $6.50/room* CRM $3.50/room* Digital Marketing $1,000* Technology $1.50/room* STR Report $70* Hyatt Place$13.3M-$18.4M Not Available Application Upscale $60,000 + $400/room Breakfast over 150 rooms Hyatt Hotels Corp. La Quinta Inn & Suites (100 room) (100 room) Application Upper Midscale$6.9M - $9.7M $324,100 to $4M $5,000 Breakfast Initial $55,000 La Quinta Inns & Suites + $500/room over 100 Lexington (100 room) (100 room) & Lexington Inn $7M - $11.8M $127,200 - $178,000 Upper Midscale Limited Service Vantage Hospitality Magnuson Grand Hotel Not Available Not Available Upper Midscale Limited or Full Service Magnuson Worldwide 42 Application Inn -$3,000 Hotel -$5,000 Initial Inn -$15,000 + $200/room over 60 rooms Hotel -$25,000 + $200/room over 100 rooms Revenue Management $99* Conference $100* Setup $10,000 w/ 3 - year license; $5,000 w/7 - year license; $1,500 w/ 10 - year license Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Royalty & Marketing Fees* Loyalty Program Fee* Reservation Fee 5% & 3% GRR Initial fee $10/room; then 4.75% of revenue plus $4.75 per stay Voice $6.50/call GDS/OTA 10% GRR* 5% & 3.5% GRR Initial fee $10/room then 4.75% of revenue plus $4.75 per stay Voice $6.50/call GDS/OTA 10% GRR* $3.50/room 10% room revenue 4% of guest spend, including room rate and incidentals GDS / 3rd Party On average, $7.10 per reservation $83.33 per room $8,333.33 minimum & $8,333.33 for 1-150 rooms; $12,500 for 151+ rooms 3.5% GRR 4.5% & 2.5% 5% of room rate GRR Membership $1,000 Inn-$30 x rooms or 3% GRR initial fee + $1,800 minimum 6.5% room Hotel- $35 x rooms or 3% GRR revenue $3,200 minimum Marketing $19 x rooms w/ $1,140 min for Inn and $1,520 min for Hotel None None 2% GRR Call Center $1.50/call + $4.50/res Vantage.com $6.50 TA 10% gross booking amount GDS/OTA $6.50 5% GRR* OTAs – Must have at least 10% of rooms available. Owner pays commission Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 43 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Brand NameEstimated investment Estimated investment for new build for conversion Franchise Fees Park Inn (200 room) Not Available Upper Midscale $1.7M - $4.8M $2,500 PIP fee Restaurant option Carlson Rezidor Hotel Group Initial Greate of $35,000 or $350/room Application $10,000 (included in initial fee) PMS/Tech* $1,986-$2,499 Radisson (200 rooms) Not Available Upscale $3M-$7.3M $2,500 PIP fee Restaurant option Carlson Rezidor Hotel Group Initial Greater of $75,000 or $500/room Application $10,000 (included in initial fee) PMS/Tech* $17-$19/room for bundled services Ramada Plaza (150 rooms) (150 rooms) Application Upper Midscale $12.7M $3.8M $1,000 Wyndham Hotel Group Initial Greater of $350/room or $35,000 Integration $6,400 new $7,900 conversion Red Lion Hotel (250 rooms) (250 rooms) Upper Midscale$30.8M - $38.7M $960,250 - $4M Full Service Red Lion Hotels Corp. TRYP (150 rooms) (150 rooms) Upscale $13M - $21.5M $1.3M - $11.7M Some F&B Wyndham Hotel Group Wyndham Garden Hotel (126 rooms) (126 rooms) Upper Midscale$11.9M - $18.7M $564,470 - $9.8M Some F&B Wyndham Hotel Group 44 Application $300/room; $60,000 minimum Revenue Management $8/room* CRM $3.50/room* Digital Field Marketing $2,000/qtr Reputation Management $150 one-time fee + $99/mo. Technology Fee $1.50/room* STR report $100/yr Application $2,500 Initial Greater of $300/room or $35,000 Integration $9,000 Application $2,500 Initial Greater of $350/room or $35,000 Integration $7,900 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Royalty & Marketing Fees* Loyalty Program Fee* 2015 UPSCALE & UPPER MIDSCALE Reservation Fee 4.5% & 2% 4.75% 1.24% GRR* GRR GRR + 4.75-3% TA/OTAs 10% Gross F&B revenue 5% GRR* or $150,000/year whichever is greater & 2% GRR 4.75% GRR + 35 - 4.74% Gross F&B revenue 2% GRR TA/OTAs 10% 4.5% & 4% 5% GRR Basic fee of 2% GRR GRR included in marketing fee GDS $6.55 Internet $5.55 3rd Party $2 5% & 3.5% GRR 1 cent/point Travel agent 10% 5% & 3% 5% GRR TRYP.com $3.83 GRR Agencies 20% GRR GDS/Internet $10.38 Voice $10.38 3rd Party $3 5% & 3% 5% of total Wyndham.com GRR invoice $3.50 OTA $5.50 GDS $7.75 Voice $12.90 3rd party $3 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 45 FRANCHISING COSTS 46 2015 UPSCALE & UPPER MIDSCALE Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Back to the Basics Economy brands provide a good starting point for new and independent hoteliers looking to play the franchising game, but owners should do their homework before taking the plunge Motel 6 modern design By Jonathan Springston, AAHOA Lodging Business M any Asian-American hoteliers own and operate hotels in the economy segment. Hotels in this space are small-to medium-sized properties that offer a very limited amount of on-site amenities and services. For hoteliers who are just starting in the business or are looking to put a flag on their independent property, the economy segment could be a good place to start. “You want to understand the branded hotel business from the you start to hit the next steps.” Over the course of the last year, AAHOA Officers have encouraged independent hotelier members who are interested to consider putting a flag on their property. DUE DILIGENCE: You have to do some homework before deciding on a brand. North Carolina hotelier Jimmy Patel, who is also vice chairman of AAHOA basis of where you have the least amount of costs you have to put into staffing [and] what you need to do to run the hotel,” Lester Adams, AAHOA Vice President of Franchise Relations, said. “It gives you the ability to understand and learn before “Some independents are doing just fine, but some guys that would consider getting in on the bottom level flag, they could get the franchise perspective,” AAHOA Vice Chairman Jimmy Patel said. “Essentially, you move the entire industry up in some respect. It’s not to say that all independent people should be franchised, but you want people who have a little bit of experience to try and move up to the next level, whatever flag that is. We want to give them the tools to have that ability to take that next step.” While putting a flag on a hotel has certain benefits, such as the name recognition and tools from the hotel company, challenges exist in the economy space, whether it’s pushing higher average daily rate (ADR) or the aging inventory hotel companies are moving from upper tier brands into the economy space. “You have to do some homework, and try your best to affiliate with the best people,” Jimmy Patel said. “Is the brand’s frequency club, if they have one, performing and giving you any return? Are there fees associated with their property management system, and how are they impacting Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 47 FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE BETWEEN THE LINES: Prior to signing the franchise agreement, you have to ask for in writing a disclosure of all internal policies that you are going to charge me for. Jay S. Patel of LHS Cos. in Pensacola, Fla. your bottom line?” Franchise agreements are often dense documents that can be difficult to decipher, but they do provide a framework that potential franchisees must understand before embarking on a branded journey. “The trickiest thing with any brand is knowing what is not in that franchise agreement, what you have to find in the franchise disclosure document (FDD) and what you have to find when you’re dealing with the brand. There’s ultimately nothing altogether tricky about it, but people tend to go to one document thinking they can find everything. That’s what you can’t do. The franchise agreement is going to give you your basic franchise language. The FDD is going to give you a different set of language. Then there is still a lot of things you have to understand that are going to come from just working with the brands, and those things may change at different points in time,” Adams said. “You may have rewards points, which are talked about within the franchise agreement and the FDD. As changes come along, you have to go away from those documents to talk to the brand specifically, because they’re not going to change in that document you signed, they’re going to change it in other places. You have to keep up with those changes.” Adams noted that some of the more confusing aspects of a franchise agreement often revolve around liquidated damages, property improvement plans (PIPs), quality assessments, and the impact of other 48 properties on your hotel. Jimmy Patel said it’s very important for franchisees to look closely at all the fees associated with the brand, be it frequency club fees, some type of processing fees for guest service issues or software maintenance. “When you look at your monthly statement, you’re not just paying royalty fees, you’re paying all these other fees that are adding up on top of your costs,” he said. “I had a 40room property. My royalty fee would maybe average $1,000 to $1,100 based on monthly revenue. Then you start adding up all these $600 or $700 fees on top of that. What percentage of your royalty was that?” “My advice to the prospective licensee is prior to signing the franchise agreement, you have to ask for in writing a disclosure of all internal policies that you are going to charge me for,” Jay S. Patel, chairman of the AAHOA Industry and Franchise Relations Committee, said. “Once you sign the agreement, you see on your statement the standard language that basically says, ‘We have the right to amend our policies from time to time.’ You give them a green light to come back later and charge more fees. You can’t argue because it is in your franchise agreement.” Jay S. Patel, who is the CEO of LHS Companies and author of Franchising: Is it Fair? How to Negotiate an Equitable Franchise Agreement, helped architect the AAHOA 12 Points of Fair Franchising in 1999. He recommends every potential franchisee take their agreement to a third-party attorney before signing; in particular, one with prior experience with franchise agreements. “Spend the $3,000 [now], and you will save more than that if an issue ever comes down the road,” Jimmy Patel said. Throughout the year, AAHOA offers webinars and educational sessions at Regional Conferences and Town Hall meetings to help members understand these agreements. But Adams stressed that while AAHOA can provide some guidance, there really is no substitute for taking the agreement to an experienced attorney. “You should have that attorney go through the agreement and make sure you understand all the things that need to be understood. Once you sign it, you’re going to be held to what you signed. Too many times people have said, ‘Well that wasn’t told to me.’ But if you flip to page four, there it is,” he said. “If you haven’t looked at it thoroughly, and you haven’t had a third party attorney look through it fully, it’s only going to work to your detriment.” GOOD START: Going from an independent hotel to an economy franchise brand “gives you the ability to understand and learn before you start to hit the next steps. Lester Adams, AAHOA vice president of franchise relations Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 49 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE With an estimated 4,500 economy-segmented properties in the U.S., economy brands account for more than 80 percent of Wyndham Hotel Group’s franchising business. Far from cornering the market, however, WHG leadership is “constantly reintroducing our brands and exploring new ways” the economy-segmented hotels can compete in a landscape well peppered with value-laden options, says Keith Pierce, executive vice president of WHG’s brand operations. One significant way WHG attempts to rise above the competition is to offer some form of breakfast at nearly all of its brands, making it a standard at Super 8 (SuperStart) and Days Inn (Daybreak). Days Inn franchisees can choose “good, better or best” healthy options such as eggs, oatmeal and yogurt. Super 8 also features expanded options, including waffles. WHG’s other economy brands offer limited breakfast options. Keeping the traveling public’s penchant for healthy choices, Days Inn also has either a swimming pool or a fitness room. Conversions are the most frequent type of franchise deal, but Pierce said WHG is signing up franchisees eager for the Days Inn new prototype. Microtel, a new-build brand, has also launched a redesign. And Howard Johnson is undergoing a refresh. Application fee is $1,000. Rewards program fee is 5% GRR per month. www.wyndhamhotelgroup.com Brand Name Super 8 Number of Total investment franchised new build properties in U.S. Total investment Franchise Fees conversion 1,718 60 rooms 60 rooms The first Super 8 motel, $2.9M to $3.9M $176,000 to $1.6M a 60-room property in Aberdeen, S.D., opened in 1974 charging $8.88 per night. www.super8.com Initial or Relicense: $25,000 (conversion) or $25,500 (new) + $100 per room if more than 120 rooms Integration: $6,400 new build, $7,000 conversion Royalty Fee Marketing Fee Per month Per month 5.5 % of GRR 3 % of GRR 1,580 89 rooms 100 rooms Initial or relicense: The Days Inn brand was $4.7M to $7.3M $199,000 to $2.4M $35,000 or $350 per created by Cecil B. Day in 1970. room, whichever is greater www.daysinn.com Integration: $6,400 new build, $7,900 conversion 5.5 % of GRR 3.8 % of GRR The brand pioneered hotel $4.7M to $8.2M $185,000 to $2.5M $35,000 or $350 per franchising in 1954. room, whichever is greater www.hojo.comIntegration: $6,400 new build, $7,900 conversion + Room sales: 2% of GRR Travelodge 341 For 100 rooms For 100 rooms Initial or Founder Scott King opened a $4.5M to $7.1M $198,000 to $1.9Mrelicense: motel in 1935. Five years later $35,000 or $350 per room, he established the whichever is greater. Travelodge brand. Integration: $6,400 new build www.travelodge.com $7,900 conversion 4.5% of GRR 2% of GRR Microtel Inns & Suites 6% of GRR 2% of GRR Days Inn Howard Johnson 249 For 100 rooms For 100 rooms Initial or relicense: 4.5% of GRR 292 For 100 rooms Microtel is a Initial: $40,000 or $400 Opened in 1989 in $4.5M to $6.7M new-build brand per guest room or suite. Rochester, N.Y. www.microtelinn.comTransfer or relicense: Application plus Initial fees. Integration: $6,400 2% of GRR Combined fees: 348 100 rooms 100 rooms Initial: $6,000 $25 per room for hotels Established in 1974 $4.7M to $7.2M $124,000 to $1.6M with up to 50 rooms. in Columbus, Ohio. For hotels with more than www.knightsinn.comTransfer or Renewal: $3,000 50 rooms, 5% of GRR Knights Inn 50 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 51 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Hospitality International Inc. has offered inexpensive franchising alternatives for hotel owners and developers since 1982. HI’s five distinct brands offer potential franchisees a choice of opportunities to best suit their particular market, geographic area and personal business needs. Application fee for all brands is $1,000. Administrative fee for all brands is $1,000. Both fees are non-refundable (NF). Royalty and Marketing fees differ for each brand, but Hospitality International also offers a flat fee of $24.50 per room for both Royalty and Marketing or $425 if sum is less than $425. www.hifranchise.com Brand Name Number of Total initial investment Total initial investment Franchise Fees franchised for new build for conversion properties in U.S. for 40 rooms for 40 rooms Scottish Inns 130 $1.4M to $2.6M $133,600 to $547,000 Initial: $7,500 Average size: 42 rooms 3% of GRR 3% of GRR Red Carpet Inn 130 $1.4M to $2.6M $133,600 to $547,000Initial: $10,000 Average size: 68 rooms 3.5% of GRR 3% of GRR Passport Inn 15 $1.4M to $2.6M $133,600 to $547,000Initial: $5,000 3% of GRR Average size: 35 rooms or fewer 3% of GRR 3 $1.4M to $2.6M $133,600 to $547,000Initial: $15,000 Average size: 140 rooms 4% of GRR 3% of GRR Initial: $5,000 3.5% of GRR 3% of GRR Limited-service brand founded in 1967. Limited and full-service brand founded in 1968. Limited service at resort locations. Master Host Inn Limited to full-service soft brand for resort or destination markets. Downtowner Inns Limited service in cities or downtowns. Royalty Fee Marketing Fee Per month Per month 3 $1.4M to $2.6M $133,600 to $547,000 Average size: 40 rooms or fewer New build agreements When it comes to a new build hotel, keep in mind that some points in the franchise licensing agreement can be negotiated differently than in a conversion. Mitch Miller, a franchise attorney in Palo Alto, Calif., offers these tips when negotiating a franchise agreement for a new build. • When building a new hotel, include in the franchise agreement the uncertainties of being able to open on a specified date. • • • Development and construction are uncertain and unpredictable processes. Governmental processes and related administrative agencies move at their own pace, over which you have little to no control. These uncertainties need to be expressly considered in the franchise agreement to avoid certain negative consequences such as being in breach of the agreed upon schedule or having to pay an extension fee. If you don’t negotiate this and you are delayed, you will have problems that are usually 100 percent avoidable. In the area of royalty fees, ask the franchisor to reduce the fee during first 12 to 36 months of your hotel’s operation. This will help reduce cash outflows while you are building the business. Sometimes a franchisor will change brand standards during the construction of your new hotel. If the franchisor mandates that you modify the construction plans to meet the changes, it could result in substantial delays and cost you a considerable amount of money. To avoid this, agree in advance with the franchisor to a certain set of plans and specifications on a specific date. Agree that these construction and design plans are the controlling requirements and you will not be required to make changes to the plans after that date. If the project never gets built or cannot be developed in the time required by the franchisor, you may lose the franchise license. Minimize or avoid liquidated damages by negotiating the consequences of a failed project up front. Otherwise, the franchisee has little, if any, leverage. 52 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Choice Hotels International Inc. began as a marketing cooperative formed by a group of seven Florida motor court owners in 1939. Operating under the name Quality Courts United — the nation’s first hotel chain — the owners sought to refer business to each other’s hotels and establish service standards for their properties to better meet the needs and expectations of their guests. Rewards fee is 3% of room revenue per month for both Econo Lodge and Rodeway Inn brands. www.choicehotels.com www.rodewayinn.com www.econolodge.com Brand Name Number of Total investment franchised for new properties in U.S. construction Total Franchise Fees investment for conversion Royalty Fee Marketing Fee Per month Per month Econo Lodge 840 68 rooms 68 rooms Affiliation: $125 per room 4.5% of 3.5% of (Lodge or Inn & Suites) $126,000 to $768,000 $126,000 to $768,000 with $25,000 minimum GRR GRR Brand was added to (includes Choice Hotels in 1990s reservations services) Rodeway Inn 450 62 rooms 62 rooms Affiliation: $125 per room $33 per room $13 per room (Inn or Inn & Suites) $88,000 to $516,000 $88,000 to $516,000 with $10,000 minimum per month Joined Choice Hotels (includes in 1990s reservation services) Magnuson Hotels owns the M-Star Hotel brand. The company offers up to $1.5 million in financing for renovations and construction projects; and it works with the Hospitality Trade Program through which hotel owners can upgrade FF&E, including LED lighting, at their properties with no cash required. Payment is made by dedicating the revenue of a certain number of rooms for a period of time. Magnuson offers rebates of up to 15% on reservation fees twice a year to hotels that meet quality standards and garner high guest-satisfaction scores. Magnuson Hotels requires its hotels to set aside 10 percent of their room inventory for online distribution. The Star Club rewards program cost is offset by providing member guests with private pricing offers. Reservation transfer fee is 5% GRR per month. www.magnusonhotels.com Brand Name Number of Total investment franchised for new properties in U.S. construction Total investment for conversion Franchise Fees (NF) Royalty Fee Marketing Fee M-Star Hotel 18 Not available Not available Base fee: 5% of monthly GRR Included with Included with An economy to upper base fee base fee. economy brand Magnuson PMS is Magnuson PMS is Initial: $10,000 required: $995 required: $995 with 5-year license GRR does not include walk-ups $5,000 with 7-year license or direct bookings; $1,500 with 10-year license Owners keeps that revenue. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 53 FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE America’s Best Franchising in Atlanta is the parent company of the three brands listed. America’s Best Franchising was founded by Doug Collins, former president of Days Inn, in 1993 as Buckhead America. The name was changed in 2005 after Collins acquired America’s Best Inn chain. Sterling F. Stoudenmire IV became CEO of ABF in March 2014. www.americasbestfranchising.com Brand Name Per Month Number of Total investment franchised for new properties in U.S. construction Total Franchise Fees Royalty Fee Marketing investment for Per month /Reservation Fee conversion Per month America’s Best Inns 95 Not available Not available & Suites Application: $1,000 $12.50 per Marketing: room 1.5% of GRR Initial: $25,000 Reservation: 1% of GRR Budgetel Inns & Suites 19 Not available Not availableApplication: $1,000 $12.50 per Marketing: room $7.50 per room Initial: $25,000 Reservation: 7% of GRR Country Hearth 69 Not available Not availableApplication: $1,000 Inns & Suites 4% of Marketing: GRR 1.5% of Initial: $25,000 GRR Reservation: 1% of GRR Budget Host Inns are in 37 states. Many are AAA rated, and the chain has been recognized among the top five economy lodging chains by J.D. Power. The chain offers an Internet reservation system, toll-free call center, printed travel directories, a quality assurance program, vendor discounts, print advertising and direct access to its corporate office, seven days a week. “The brand has minimum maintenance and housekeeping standards. Assuming the property is in good condition and well-run, cost of conversion is minimal,” said Lisa Sawyer, CEO of Budget Host Inns. “Our contract is a one-year term. No liquidated damages. No exit penalties. Annual fees are divided into 12 monthly installments with no finance charges.” www.budgethost.com Brand Name Number of Total investment franchised new build properties in U.S. Budget Host Inns Total Franchise Fees investment for conversion 141 Not available Not available Initial: $5,000 Established in 1975. Budget Host in Cameron, Texas 54 Royalty Fee Marketing Fee Per month Per month $1,500 plus $480 annual sign royalty plus $80 per unit. None Budget Host in St. Ignace, Mich. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Key West Inns, Hotels and Resorts were founded in 1989 by the Jackson family. The company joined CEO Steve Belmonte and the Vimana Franchise System in May 2011. Key West founders Neal Jackson and Cory Jackson Jr. serve as president and vice president, respectively. The brand was re-launched in November 2011 and began a U.S.-expansion initiative. Although the coastal design sported by some of the franchised hotels focuses on family fun in resort and destination areas, the versatile brand also caters to business travelers in many of its markets. Amanda Belmonte, director of marketing for Vimana, said the mostrecent Key West Inn opened in Indiana with seven Dhruv Amin owns the beach-themed more in the pipeline. Key West Inn in Fairhope, Ala. www.staykeywesthotels.com www.VimanaFS.com Brand Name Number of Total investment franchised for new properties in U.S. construction Total Franchise Fees investment for conversion Royalty Fee Marketing Fee Per month Key West Inn (60-80 rooms), 24 Inn, Suites or Inn & Not available Application (NF): $2,000 3% of None Suites (all suites), Inn & Suites Suites (60 rooms): GRR (20% rooms are suites), Hotel $3.1M to $4.4M Initial: $12,000 (high-rise, large, full-service), Resort (Full-service, lounge, spa, Hotel (100 rooms): Entry: $12,000 pool, fitness with 150-250 rooms) $7.6M to $10M Resort (150 rooms): $17.3M to $19.7M Vantage Hospitality Group in Coral Springs, Fla., is the parent of Americas Best Value Inn. Roger Bloss founded the company in 1999 with a desire to keep hotel franchising simple for both the franchisor and the franchisee. The chart shows 2014 fee rates. The membership fees for 2015 and 2016 increase by $1 each year in all categories. The marketing fee will increase by $1 next year, but the 2016 increase is not known as the members will vote on the issue in December of this year. Vantage Hospitality’s rewards program, Club Vantage, has no fees and is supported by the room discounts offered to loyal guests at the hotels. Owners must daily set aside eight rooms or 5 percent of their total inventory for use by Vantage Club guests. www.vantagehospitality.com Brand Name Number of Total investment franchised for new properties in U.S. construction Total Franchise Fees investment for conversion Royalty Fee Marketing Fee Per month Per month Americas Best Value Inn 1,046 60 rooms 50 rooms Application (NF): $1,500 None Minimum of $520 $2.9M to $4M $16,000 to $120,000 a month or $13 Initial: $10,000 up to 50 rooms; per room $150 per room 50+ rooms 2014 Monthly Membership: Minimum of $780 a month or • $19.50 per room first 50 rooms • $15.50 per room for 51-75 rooms • $14.50 per room for 76+ rooms Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 55 FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Asian-American impact Asian-American hoteliers have been Motel 6’s “biggest team mates,” said Jim Amorosia, CEO of parent company G6 Hospitality. Of its 560 franchised properties the vast majority is owned by Asian-Americans. “We have an extremely vibrant relationship with Asian-American hoteliers, and this is an opportunity to multiply our businesses and not stay stagnant. They know what makes a business tick.” Asian-American hoteliers have already identified a number of markets in the U.S. where the economy brand can thrive. In addition, Amorosia is seeing licensing deals being struck in “feeder markets,” areas near highbarrier-to-entry markets that offer affordable opportunities to develop new economy hotels. www.g6hospitality.com Brand Name Motel 6 Number of Total franchised investment for properties in U.S. new construction Total Franchise Fees investment for conversion Royalty Fee Marketing Fee Per month Per month 560 63 rooms Not available Application: $5,000 5% of Founded in 1962. GRR G6 Franchising’s name was $2M to $2.9M Initial: $25,000 plus changed from Accor Franchising $400 per room North America LLC in July 2012 in excess of 75 rooms. in connection with October 2012 acquisition of Accor’s U.S. economy hotels by the Blackstone Group 3.5% of GRR (includes reservation services) Motel 6 is owned by Blackstone Group, a private equity hotel investor. It acquired Motel 6 and Studio 6 brands from Accor of France in 2012. Doing the numbers provides a picture of the brands’ health: $800,000: Cost of the first Motel 6 built in 1962 in California. $1.9 billion: What Blackstone Group paid in 2012 to acquire Motel 6 and Studio 6 brands and hotels from Accor of France. $500 million: Investment by Blackstone Group to renovate and refresh the brands. 1,100: Hotels in G6 Hospitality portfolio The first Motel 6 opened in 1962 560: Franchised hotels in California 100 to 125: Company-owned hotels G6 Hospitality is renovating each year. 150: Franchised properties are following suit each year, and adopting the brand’s Phoenix guestroom prototype. 300: Renovated hotels – franchised and corporate-owned – G6 Hospitality hopes to complete each year through 2016. 100 to 165: New Motel 6 franchises to come online in 2014, up from 60 deals last year. www.g6hospitality.com/franchising/motel-6 G6 Hospitality expects its owned and franchised hotels to feature the Phoenix guest room design 56 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 57 2015 UPSCALE & UPPER MIDSCALE 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS Red Roof Inn was founded in 1972 by James R. Trueman. The first Red Roof Inn opened in 1973 in Columbus, Ohio, with a rate of $8.50. A Citigroup affiliate acquired the brand in 2007 for $1.3 billion from Accor of France. For the past four years, Red Roof Inn has earned the highest customer-satisfaction score among its economy lodging competitors, according to the ReviewMetrix Consumer Satisfaction Index, by MarketMetrix. Guests ranked Red Roof’s rooms, service, cleanliness, and its overall value, higher than its economy-brand competitors. In December 2011, the chain launched a The first Red Roof Inn Next Gen redesign $90-million Next-Gen redesign based on was at the Red Roof Inn Miami Airport guests’ desires. The top request by far was for more electrical outlets, and the second most requested change was for flat-screen TVs. This year, Red Roof Inn has gone even further and introduced a new level of economy branding. Red Roof PLUS offers more guest amenities, such as premium bedding snack boxes, in-room coffee and tea, a mini-fridge and a microwave. It hopes to have more than 30 Red Roof PLUS hotels open by the end of 2014. www.redroof.com A Next Gen guestroom Brand Name Number of Total initial Total initial Franchise Fees Royalty Fee Marketing Fee franchised investment for investment for Per month Per month properties in U.S. new construction conversion for 65 rooms for 65 rooms Red Roof Inn or 357 Inn or Inn & Suites: Inn or Inn & Suites: Application: $3,000 4.5% of 4% of Inn & Suites; $3.4M to $4.5M $93,600 to $1.3M GRR GRR Red Roof PLUS; PLUS: $3.4M PLUS: $561,600 Initial: $27,000 or $25,000 (includes Red Roof PLUS & Suites to $4.6M to $1.3M for existing franchisees reservation services) PLUS & Suites: PLUS & Suites: Renewal: 50% of $3.4M to $4.6M $628,600 to $1.4M Stand Out From Your Competition In the economy segment of the U.S. hotel industry, it can be difficult for brands at the same price points to differentiate themselves from one another. Here are some tips to stand out from the competition. • Super cleanliness in guest rooms and bathrooms • Superior customer service • Create curb appeal with a stylish exterior, entrance and landscaping • Offer grab-and-go food items in the lobby • Go 100% smoke free • Go green, adopt linen re-use and place recycle waste cans in guest rooms • Update guest room technology with flat-screen TVs and add more electrical outlets for recharging devices • Offer free high-speed Internet 58 current initial fee TOP Five Questions for Prospective Franchisees 1. Does the brand have a frequency/ loyalty club and if so, what are the fees associated with it and what is the return on investment? 2. What fees are associated with the property management system? 3. If I want to get out of the brand before the contract is expired, what are the fees/damages involved? 4. Does the brand reserve the right to levy new or additional fees in the future? What are they? 5. Ask for everything in writing and take all of it to a third-party attorney for review. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 59 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Nancy Johnson 701 Carlson Parkway, Mail Stop 8203 Minnetonka, MN 55305 Telephone: (763) 212-1326 Fax: (763) 212-8197 Email: njohnson@carlsonrezidor.com Website: www.carlson.com The Carlson Rezidor Hotel Group – born in early 2012 – is one of the world’s largest and most dynamic hotel groups. The portfolio of the Carlson Rezidor Hotel Group includes more than 1,300 hotels, a global footprint spanning 80 countries, a powerful set of global brands (Radisson Blu, Radisson®, Country Inns & Suites By CarlsonSM, Park Inn by Radisson, Hotel Missoni and Park Plaza®). In most of the group’s hotels, guests can benefit from the loyalty program Club CarlsonSM, one of the most rewarding loyalty programs in the world. The Carlson Rezidor Hotel Group and its brands employ more than 80,000 people. The Carlson Rezidor Hotel Group is headquartered in Minneapolis, Minn., and Brussels, Belgium. Primary Contact Information Lisa Gallaway Director of Sales 75 Caliente Street Reno, NV 89509 Telephone: +1 775 315 8210 Fax: +1 775 323 6667 Email: lisa@chargerback.com Website: www.chargerback.com Chargerback helps streamline and automate the entire lost and found process. It’s an easy to use, cloud-based lost and found system that: • makes it easier for guests to self-report lost items • makes it easier for staff to match those reports with items that have been turned in • can generate update emails to both your staff and the guest • can generate pre-paid shipping labels to return the item to the guest Businesses that use Chargerback can cut in half the time their staff spends on lost and found, and yet average over a 90% return rate when guests self-report a lost item. Best of all, it is FREE to your business, requires no software to be installed, and includes free training your staff can access anytime. You can learn more about why so many AAHOA hotel and motel owners are choosing Chargerback here: http://www.chargerback.com/ chargerback/overview.asp. 60 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 61 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Cathy Poinsett Sr. Director Creative Svc’s, B2B Marketing & Development Marketing 10750 Columbia Pike Silver Spring, MD 20901 Telephone: (301) 592-6720 Fax: (301) 592-5058 Email: franchise_sales@choicehotels.com Website: www.choicehotelsfranchise.com Founded over 70 years ago, Choice Hotels International, Inc. (NYSE:CHH) is one of the world’s largest hotel companies, with more than 6,700 hotels open or under development in more than 30 countries and territories. From the upscale Cambria Suites and Ascend Hotel Collection to the iconic Comfort Inn and popular Quality Inn and Econo Lodge brands, Choice Hotels has a variety of options to fit your investment needs. With expert-crafted training programs, national marketing support, a loyal customer base, and a global reservations system, we work day-in and day-out to ensure we’re doing everything in our power to help drive reservations straight to your hotels. As a franchisee, you will be supported by a dedicated team of Choice Hotels associates focused on delivering value for you, from our cutting-edge distribution systems to property-level operational support. Our collaborative approach with franchisees is what truly makes us a leading player in today’s hospitality industry. Primary Contact Information Kyle Kurtz AAHOA Account Manager 4277 Valley Fair St. Simi Valley, CA 93063 Telephone: (800) 231-4553 Fax: (866) 497-5131 Coast to Coast Computer Products, Inc.™ is a nationwide partner for all of your ink and toner needs. With over 27 years of experience, our reliability and dedication is certified by a consistently maintained A+ rating and recognition as a Champion of Business Ethics partner from the Better Business Bureau. We offer OEM ink and toner as well as an OEM alternative, our Diamond Series™ cartridges. These exclusive cartridges are environmentally friendly and come with a 100%, two-year warranty. Each cartridge is made in the USA and utilizes 33 patented and patent-pending technologies, resulting in a consistent, high-quality product. In the hospitality industry, it can get overwhelming with multiple vendor contacts. By partnering with Coast to Coast, we can help to reduce that headache by supplying all of your printing needs such as: • OEM ink and toner • Diamond Series™ toners • Ribbons • Drums • Maintenance kits • Printer parts • Printers and MFPs • Back-up tapes • Break and fix service Exclusive AAHOA 800 Number – (800) 231-4553 Coast to Coast is thrilled to announce a new height of dedication to AAHOA and an additional level of service to you. Effective immediately, Coast to Coast has launched a new toll-free number, exclusive to AAHOA members that directly connects you to your very own ink and toner specialist. Each specialist has been trained with the AAHOA member in mind, providing a simple solution for all of your printing needs. Call the new toll-free number and ask for the AAHOA program by name to learn how you can start saving money today. 62 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Ken Good Sr. Mgr., Strategic Hospitality Accounts 6550 Greenwood Plaza Blvd., Englewood, CO 80111 Telephone: (303) 712-4615 Email: kgood@DIRECTV.com Website: www.DIRECTV.com/AAHOA Make your guests feel at home when they stay at your hotel. With the DIRECTV Residential Experience, you can offer your guests the same great entertainment enjoyed every day by over 20 million DIRECTV residential customers. And with the introduction of our newest system, entertainment for your hotel has become even more affordable. Call today and get connected with one of our authorized dealers for the best TV experience at our best prices ever. Primary Contact Information Amy Phillips 30 Frank Lloyd Wright Drive Ann Arbor, MI 48105 Telephone: (734) 930-3647 Email: amy.phillips@dominos.com Special savings for AAHOA Members… • Free Domino’s Pizza keycards! • Free shipping & handling • Highest quality keycards from PLI (the world’s largest keycard manufacturer) • Easy ordering (call 1-800-752-1017) • Additional partner “perks” from the local Domino’s manager / owner operator Call now to request your FREE Domino’s keycards! 1-800-752-1017 (PLI – distributor) Domino’s Pizza – the recognized leader in pizza delivery can now become your recommended local pizza delivery partner! With over 47 years of experience, 5,000 stores in the U.S. and delivery experts driving over 10 million miles a week, Domino’s is a great solution for room service, lunch, dinner or late night hunger. Domino’s has menu variety, great value for your guests, quality products, delivery service and a brand your customers will recognize and trust. Domino’s newest addition, Oven Baked Sandwiches, are delicious and come in four great tasting varieties. *Note: Hotel must be located within Domino’s Pizza delivery area to participate. Participation may vary. Free keycard program dependent upon local Domino’s Pizza participation. About Domino’s Pizza® Founded in 1960, Domino’s Pizza is the recognized world leader in pizza delivery. Domino’s is listed on the NYSE under the symbol “DPZ.” Through its primarily locally-owned and operated franchised system, Domino’s operates a network of 8,726 franchised and Company-owned stores in the United States and 60 international markets. The Domino’s Pizza® brand, named a Megabrand by Advertising Age magazine, had global retail sales of over $5.4 billion in 2007, comprised of $3.2 billion domestically and $2.2 billion internationally. During the third quarter of 2008, the Domino’s Pizza® brand had global retail sales of $1.3 billion, comprised of approximately $683 million domestically and approximately $583 million internationally. Domino’s Pizza was named “Chain of the Year” by Pizza Today magazine, the leading publication of the pizza industry. Customers can place orders online in English and Spanish by visiting www.dominos.com or from a Web-enabled cell phone by visiting mobile.dominos.com. More information on the Company, in English and Spanish, can be found on the Web at www. dominos.com. Domino’s Pizza. You Got 30 Minutes™. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 63 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Michael Seiger Client Relations Manager Phone: (305) 300-3000 Email: mseiger@floridaattorney.com Farrell & Patel, Attorneys At Law, is committed to serving the legal needs of hotel owners across the country. With offices in Miami, Tampa, New Orleans, and Houston, we represent thousands of individuals and business owners who have been injured by the negligence and careless acts of others. The firm has been at the forefront of the Deepwater Horizon settlement, recovering millions of dollars for our clients who were devastated by the 2010 BP oil spill. Our clients also consist of business owners who purchased or owned defective LG air conditioning units, as well as women who have been injured by taking the birth control Yaz and/or Yasmin. As Farrell & Patel continues to grow, we strive to provide exceptional care when handling your sensitive legal issues. The firm’s core areas of practice include civil litigation, tax matters, immigration, mass tort, business disputes, franchise litigation, economic damage claims, and bankruptcy. We have the resources, infrastructure and credentials to take on the most challenging cases against the world’s largest corporations. Our highest priority will always be serving your legal needs to obtain the justice you deserve. Primary Contact Information Peter McCaughley 370 Wabasha St N Saint Paul, MN 55102-1349 Telephone: 800-35-CLEAN Email: peter.mccaughley@ecolab.com Website: www.ecolab.com For over 90 years Ecolab has been committed to combining cutting-edge technologies with world-class, personalized service. Today, our over 22,000 sales and service associates serve over 1 million customers around the globe. It’s our goal to help you operate cleaner, safer, healthier hotels. We’re your local, personal resource, working with your team while leveraging the strength of our global expertise. We take care of you, so you can take care of your guests. Our laundry, housekeeping, and pool & spa programs offer significant water, energy, and labor savings while providing your guests with the clean, safe, and comfortable stay that they expect. Our food and beverage, pest elimination, and kitchen equipment programs improve hygiene and food safety, and maximize the uptime of your foodservice operation. And our facility water treatment programs optimize the efficiency and sustainability of your HVAC and cooling tower systems. Our commitment to you is a more comprehensive, higher level of clean, for a higher level of guest satisfaction, all at the lowest total cost of operation. 64 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Dean Savas Executive Vice President, Franchise and International Development 4001 International Pkwy Carrollton, TX 75007-1914 Telephone: (972) 360-2547 Fax: (972) 360-5567 Email: savas_dean@g6hospitality.com Website: www.g6hospitality.com With Motel 6 and Studio 6, you get more than a franchise — you get a strong partnership and the support of a true owner-operator. With more than 1,100 properties and more than 50 years of experience, we understand the importance of protecting your investment with strong brands, proven infrastructure and ongoing support. Our culture of service and commitment guides everything we do; we are dedicated to bringing you personal service, ongoing training, marketing, and advertising support. Ultimately, your success is our success. We know the economy segment, the competitive landscape and what you need to make your hotel a success. We embrace a franchising philosophy based on fairness, honesty, trust, open communication, and diversity, providing an environment for long-term, successful partnerships.Whether you build from the ground up or convert an existing hotel, we’re with you each step of the way. Primary Contact Information Byron Cortez 1810 Wilson Pkwy Fayetteville, TN 37334-3547 Telephone: (800) 647-2982 Fax: (713) 316-5544 Email: bcortez@amana-ptac.com Website: www.amana-ptac.com Amana brand PTACs have been a founding sponsor of AAHOA since the beginning of the organization 25 years ago. Amana PTACs have been assembled in our Goodman owned Fayetteville, Tenn., production facility since 1976 – 38 years and continue today. The Fayetteville production facility has just recently completed a $25 million expansion and renovation. Being assembled in the United States allows Goodman to offer high quality, quiet PTAC products for the AAHOA lodging properties and deliver them when needed. We offer a full line of PTACs, VTACs and 26” unit product with an extensive line of accessories unmatched in the industry. Our DigiSmart control and energy management system can save your property electrical cost and offer many features to help manage your property more efficiently. With the acquisition of the Goodman Company and Amana brand PTACs by Daikin Industries in 2012, this gives us global presence and a product backing by the largest heating and air company in the world. Daikin and Goodman offer many more air conditioning products: Light Commercial, Mini-Splits and VRV, to name a few. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 65 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Bill Fortier Sr. Vice President-Development, Americas 7930 Jones Branch Dr McLean, VA 22102 Telephone: (800) 286-0645 Fax: (703) 442-3100 Email: bill.fortier@hilton.com Website: www.hiltonfranchise.com Hilton Worldwide Profile An open door. A welcoming smile. An exceptional experience. That’s what we offer the millions of travelers who stay with us every year. And we never forget the reason we’re here: to delight our guests, team members, and owners alike. We’re Hilton Worldwide. Since being founded in 1919, Hilton Worldwide has been a leader in the hospitality industry. Today, Hilton Worldwide remains a beacon of innovation, quality, and success. This continued leadership is the result of our staying true to our Vision: To fill the earth with the light and warmth of hospitality. Hilton Worldwide spans the lodging sector from luxury and full service hotels and resorts to extended stay suites and focused service hotels. For 94 years, Hilton Worldwide has been dedicated to continuing its tradition of providing exceptional guest experiences. The company’s portfolio of ten world class global brands is comprised of more than 4,000 managed, franchised, owned and leased hotels and timeshare properties, with nearly 672,000 rooms in 90 countries and territories, including Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton Hotels, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations. The company also manages an award winning customer loyalty program, Hilton HHonors®. Primary Contact Information Rajan Batra Senior National Account Manager 10641 Scripps Summit Ct San Diego, CA 92131-3961 Telephone: (800) 431-3000 Fax: (800) 859-8889 Email: rajan.batra@hdsupply.com Website: www.hdsupplysolutions.com HD Supply is the leading supplier of maintenance repair and replacement products to owners and managers of multi-family, hospitality and commercial properties. AAHOA has struck the same pricing agreement that large franchise organizations such as Wyndham, Choice, Intercontinental, etc. receive for brand name housekeeping and maintenance supplies. These quality products are shipped free to 90% of the US population next day and AAHOA members receive the red check price (lowest catalog price) regardless of quantities (an average savings of 12% just by being a member of AAHOA). 66 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Jim Bloodworth 1726 Montreal Cir, Suite 110 Tucker, GA 30084-6820 Telephone: (800) 247-4677 Fax: (770) 270-1077 Email: jebloodworth@hifranchise.com Website: www.hifranchise.com About Hospitality International, Inc. Hospitality International, Inc. has been offering franchising opportunities for hotel and motel owners and developers since 1982. To date, we offer national franchise opportunities with 300 hotel and motel properties located in 36 states, including Canada and the Bahamas. Prospective franchisees enjoy a choice of five hotel and motel brands to best suit their particular market, geographic area and personal business needs. Hospitality International, Inc. does not require its hotel and motel franchise members to look and operate identically. In fact, we value individuality in terms of the look and feel of each lodging property, while maintaining standards of quality that benefit the entire franchise system. Primary Contact Information Samir Parikh 38 Smith Street, Suite D-1 Metuchen, NJ 08840-1770 Telephone: (908) 222-9383 Fax: (908) 222-9386 Email: samir@hoteldepots.com Website: www.hoteldepots.com HDS is a full service FF&E Design and Procurement company specializing in the Hospitality Industry. Since 2002, HDS has successfully completed hundreds of FF&E projects for independent franchise owners and managers of virtually every major hotel brand. Our experience with a wide range of hotels, from chain-affiliated full-service, mid-market, limited-service and economy properties, allows us leverage to obtain top quality sourcing, selection, design, purchasing and management of all FF&E needs. As a leader in the Hospitality Industry, we are experts in complete FF&E, Interior Designing & Purchasing. We are a preferred procurement company for Intercontinental, Choice and provide the same great services for most hotel brands including Hilton, Marriott, Sheraton, and Wyndham. HDS offers professional Interior Design, space planning/room layouts, budget preparation, brand affiliation & coordination, FF&E procurement, 3 D Rendering, field survey, relationships with brand approved vendors and much more! Our sister company also provide soft installation services. Please feel free to visit our website at www.hoteldepots.com<http://www.hoteldepots.com><http://www.hoteldepots.com>, send your inquires to sales@hoteldepots.com<mailto:sales@hoteldepots.com><mailto:sales@hoteldepots.com> or give us a call! Our customer service team will be more than happy to assist you. Whether you need an individual order, partial refurbishment, or a complete renovation, we look forward to begin working towards turning your dream hotel into a reality. Primary Contact Information Becki Cohen Manager, Franchise Owner Relations Group 71 South Wacker Drive Chicago, IL 60606 Telephone: (312) 780-5483 Fax: (312) 780-5821 Email: becki.cohen@hyatt.com www.hyatt.com About Hyatt Hotels Corporation Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The Company’s subsidiaries manage, franchise, own and develop hotels and resorts under the Hyatt®, Park Hyatt®, Andaz®, Grand Hyatt®, Hyatt Regency®, Hyatt Place®, Hyatt House®, Hyatt Zilara™ and Hyatt Ziva™ brand names and have locations on six continents. Hyatt Residential Group, Inc., a Hyatt Hotels Corporation subsidiary, develops, operates, markets or licenses Hyatt Residences® and Hyatt Residence Club®. As of December 31, 2013, the Company’s worldwide portfolio consisted of 548 properties in 48 countries. For more information, please visit www.hyatt.com. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 67 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Brian Venable Director of Lodging Sales & Marketing 101 Marietta Street NW Atlanta, GA 30303-2711 Telephone: (404) 239-6695 Fax: (404) 239-6669 Email: brian.venable@hbo.com Website: homeboxoffice.com/lodging Home Box Office, America’s #1 premium television service, provides the lodging industry with an amenity that guests ask for by name. Our top quality mix of programming includes blockbuster movies, sports, and award-winning original programming like Game of Thrones®, Boardwalk Empire®, and True Blood®. With this kind of top quality entertainment, it’s no wonder HBO is in more hotels nationwide than any other premium TV service. 68 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Erika Stewart 130 Maple Dr North Hendersonville, TN 37075 Telephone: (800) 525-4658 Fax: (615) 264-1898 Email: erika.stewart@travlynx.com Website: www.innlink.com The InnLink – AAHOA Partnership Simplicity, reliability, and affordability. InnLink doesn’t just provide Central Reservation Services (CRS); we are the valued partner of AAHOA members. We ensure you a level of customer service unmatched by any other industry vendor. We have created simple, productive and reliable processes to guide you through the world of connectivity. InnLink provides a complete package of reservation services for AAHOA members with a reduced implementation fee. Participating AAHOA properties can select all the InnLink Core Services; Electronic connectivity to Global Distribution Services (GDS) for travel agents and Online Travel Site (OTA) reservations, an integrated booking engine for property website with mobile and facebook integration and Voice Reservation Services. Each property will also have Account Management to help increase property revenue and channel distribution. AAHOA members are able to maintain all property information through InnLink’s customer management tool, RESmatrix. Members have 24 hour a day complete access to update hotel and room descriptions, room inventory, rates, availability. Images and packages. Free RESmatrix training is part of the AAHOA package and 24 hour customer service support is included. The AAHOA package also includes a free interface implementation for any Property Management System (PMS) System with an established InnLink interface. A PMS to CRS interface increases reservation booking capability, simplifies the hotel front office processes and improves data security enhancing PCI compliance. AAHOA members can get more information on PMS interfaces from InnLink. The InnLink – AAHOA partnership of value-added reservation services has been the choice of AAHOA members since 2008. Primary Contact Information Kate Getchell, Key Account Mgr., Franchisees 16265 Star Road Nampa, ID 83687 Telephone: (800) 592-8058 or (208) 761-2041 cell Email: kate.getchell@imagenational.com Website: www.imagenational.com Image National is a full service integrated manufacturer of electric exterior signage serving national clients and markets. Capabilities include but are not limited to channel letters, cabinet signs, monument and pylon signs as well as a wide variety of vinyl production. As a single source of supply, Image National’s services include complete design, fabrication, project management and installation as well as a National Service Center for maintenance. With manufacturing facilities in both the Boise, ID and Dallas, TX areas, Image National owns over one hundred thousand square feet of manufacturing space and employs well over one hundred associates. In association with Futura Corporation, Image National enjoys strong financial health. The company has been in business for over sixty years during which time the company has nurtured a reputation for quality and integrity. Though Image National has manufacturing capabilities second to none, even more importantly, the company has a long rich history of totally satisfied clients. Our client services/project management team continually strives to be “best in class” by offering attention to detail as well as superlative customer relations. Outstanding client service is the hallmark of Image National. Image National’s level of performance and the relationships we established in the IHG Holiday Inn re-launch program were the impetus for becoming an AAHOA Founding Partner. Primary Contact Information Bob Ekman Vice President, Midscale Development Three Ravinia Drive, Suite 100 Atlanta, GA 30346 Telephone: (866) 933-8356 Email: americas.development@ihg.com Website: www.ihg.com/development About IHG IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organization with a broad portfolio of nine hotel brands, including InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites®, EVEN™ Hotels and HUALUXE™ Hotels & Resorts. IHG manages IHG® Rewards Club, the world’s first and largest hotel loyalty program with over 77 million members worldwide. The program was relaunched in July 2013, offering enhanced benefits for members including free internet across all hotels, globally. IHG franchises, leases, manages or owns 4,700 hotels and 687,000 guest rooms in nearly 100 countries and territories. With more than 1,100 hotels in its development pipeline, IHG expects to recruit around 90,000 people into additional roles across its estate over the next few years. InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 69 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Rajiv Trivedi Executive V P, Franchising 909 Hidden Rdg, Suite 600 Irving, TX 75038-3813 Telephone: (214) 492-6753 Fax: (214) 492-6553 Email: rajiv.trivedi@laquinta.com Website: www.lq.com Whether traveling for business or pleasure, La Quinta is the mid-priced national hotel chain that always delivers large comfortable rooms, with consistent dependable quality at a reasonable price at every location and a frequent guest program that recognizes and rewards their loyalty. • Founded in San Antonio, TX in 1968 • Leading provider of mid-scale, limited service lodging • Strong brand awareness • Consistent, high-quality accommodations at reasonable prices • Appeals to both business and leisure travelers • Located in 33 States, including 19 of the top 25 U.S. lodging markets • Opened first La Quinta Hotel in Canada in 2004 • Scheduled to open first La Quinta Hotel in Mexico by 2006 • La Quinta and its franchisees work cooperatively to serve and satisfy guests’needs and expectations Primary Contact Information Christie L. McEneaney (Patterson) Sr. Manager, Franchise Sales, Select Service & Extended Stay Lodging Development 10400 Fernwood Road, Department 51/514.01 Bethesda, MD 20817 Telephone: (301) 380-6066 Fax: (301) 380-6699 Email: Christie.McEneaney@Marriott.com Website: www.marriottdevelopment.com Marriott International, Inc. is a leading lodging company with more than 3,300 lodging properties in 68 countries and territories. Its heritage can be traced to a small root beer stand opened in Washington, D.C. in 1927 by company founders, J. Willard and Alice S. Marriott. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under theMarriott Vacation Club, The Ritz-Carlton Destination Club, The Ritz-Carlton Residences andGrand Residences by Marriott brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Bethesda, Maryland, USA and had approximately 146,000 employees at 2008 year-end. It is recognized by FORTUNE® as one of the best companies to work for, and by the U.S. Environmental Protection Agency (EPA) as Partner of the Year since 2004. In fiscal year 2008, Marriott International reported sales from continuing operations of nearly $13 billion. For more information or reservations, please visit our web site atwww.marriott.com. To learn more about developing Marriott branded hotels visitwww.marriottdevelopment.com. For an interactive online version of Marriott’s 2008 Annual Report, which includes a short video message from Chairman and CEO J.W. Marriott, Jr., visitwww. marriott.com/investor. Marriott International’s goal is to create significant value by aggressively building its brands and growing its businesses. The company is dedicated to providing exceptional service to customers, growth opportunities for associates, and attractive returns to shareholders and owners. 70 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Lowe’s Primary Contact Information Andy Miller Manager – ProServices, National Accounts & International Sales 1000 Lowes Blvd Mooresville, NC 28117 Telephone: (704) 758-4382 Fax: (877) 270-7158 Email: andy.c.miller@lowes.com Lowe’s ProServices is pleased to announce an exclusive benefit for AAHOA members AAHOA members with a Lowe’s Business Credit Account will be eligible to receive 5% off* purchases at the point of sale by utilizing a Lowe’s Business Credit Account. To receive this benefit, AAHOA members should: • Ask for the 5% discount offer at the point of sale. • Receive an addition to the 2% when members with an existing Lowe’s Account Receivable (LAR) credit account, which is linked as a child account of AAHOA, are eligible to receive a 2% prompt payment discount on invoices for their LAR credit account purchases paid within terms. (Note: This benefit is not an in-store or point of sale product discount. This will be taken off your monthly billing statement. To receive this benefit, you must be an active member of • Register your existing LAR credit account at. www.LowesForPros.com/SpecialPrograms Enter code 1016 when registering online. • If you do not have an existing LAR credit account, the same website offers a downloadable LAR credit application to complete and fax to 1-877-270-5888. Once approved, you can register the new LAR credit account information at LowesForPros.com/SpecialPrograms to have the 2% prompt payment discount terms. The same code of 1016 when you register. Also receive a $20 reduced delivery charge on purchases when using a LAR credit account in store only. Reduced delivery not available for online purchases. Lowe’s ProServices is looking forward to this new and exciting partnership for 2014 and years to come. If you have any questions, please contact Corporate Accounts at NationalProgram@Lowes.com. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 71 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Mark Lewitt Director, Global Premier Accounts 2232 Northmont Parkway Duluth, GA 30096 Telephone: (864) 621-1546 Fax: (860) 755-9781 Email: mark.lewitt@onity.com Website: www.onity.com Real Solutions - Reliable Support. Onity (formerly TESA Entry Systems, Inc.), a leading global provider of electronic locking systems, offers innovative technological solutions and services for the Hospitality, Corporate, Education, Government and Marine markets. The company’s ever-expanding family of facility management solutions includes electronic locks, in-room safes, and Senercomm® energy-management systems. Headquartered in Norcross, Georgia, Onity has R&D and manufacturing operations in Spain, Mexico, China, and the U.S., as well as an extensive sales and service network that spans more than 115 countries around the globe. For information about Onity’s electronic hospitality solutions please visit www.onity.com Primary Contact Information Rahul Patel Marketing Consultant Email: aahoa@paradigmtax.com Telephone: (210) 477 – 1800 Website: www.paradigmtax.com/aahoa About Paradigm Tax Group Paradigm Tax Group is the nation’s leading property tax consulting firm. Our commitment to superior client service combined with our state-ofthe-art technology platform produces unparalleled property tax savings for our clients. With more than 180 property tax professionals based in more than 30 major metropolitan locations, our team is comprised of former assessors, appraisers, attorneys, CPA’s, and valuation experts who collectively form the most qualified group of property tax consultants in the country. Paradigm’s hospitality expertise and strong local knowledge and relationships can help your business with property tax appeals, transfer tax appeals for properties you may have sold or acquired, transaction price segregation (TPS) for properties you may be selling, cost segregation, and many other services to enhance your bottom line. As part of our Founding Member Sponsorship commitment to AAHOA, we are committed to providing AAHOA members with the tax savings benefits that only the nation’s leading property tax consulting firm can provide. AAHOA members that choose to partner with Paradigm will receive tax management services with specially negotiated, volume discount AAHOA pricing. In addition, we pledge to commit a percentage of the tax savings fees we generate back to AAHOA to provide additional ongoing benefits to all AAHOA members. Kuntesh Chokshi Sales Director, New Business Hospitality Primary Contact Information Kuntesh Chokshi 7701 Legacy Dr Plano, TX 75024-4002 Telephone: (972) 567-5421 Email: kuntesh.chokshi@pepsico.com 72 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Frank Melville 2150 W 6th Ave Unit D Broomfield, CO 80020-7116 Telephone: (800) 245-9933 Fax: (303) 465-0237 Email: info@phonesuite.com Website: www.phonesuite.com PhoneSuite has leveraged its expertise in communication technology for over twenty-five years to provide high-quality, energy-efficient, cost-efficient phone systems exclusively for the hospitality industry. Founded in 1988 by two former Bell laboratories engineers, PhoneSuite is a privately held corporation located in Broomfield, Colorado. Several of the founding members remain on staff contributing to the continual advancement of the company and its products. PhoneSuite is proud to have installed over 4,000 hotel phone systems in properties ranging from B&B’s to 475-room franchise hotels throughout the United States and Canada. Our products, combined with our nationwide dealer support and engineering expertise, create reliable communication solutions that meet or exceed all hotel requirements. PhoneSuite is a Preferred Vendor for several major hotel chains, an Allied Member of the American Hotel & Lodging Association (AH&LA), a Founding Sponsor of the Asian American Hotel Owners Association (AAHOA), a member of Hotel Technology Next Generation (HTNG), and was recognized by the Denver Business Journal as one of the Top 25 Fastest Growing Small Private Companies. Primary Contact Information Laurie Ivy Director, Hospitality Marketing 17950 Preston Rd, Suite 600 Dallas, TX 75252 Telephone: (800) 486-3223 Email: l.ivy@pmctrust.com Website: www.pmctrust.com PMC Commercial Trust offers conventional and SBA loan programs for the acquisition, refinancing, renovation and construction of businesses with commercial real estate throughout the country as principal lenders. PMC has been granted Preferred Lender (PLP) status from the SBA, which allows for a faster turn-around time at the SBA. Since the early 90’s PMC’s focus has been on the hospitality industry, assisting start up individuals as well as multi property owners in obtaining the financing that best fits their needs. Primary Contact Information Phil Hugh CDO The Red Roof Building, 605 S. Front Street Columbus, OH 43215 Telephone: (888) 473-8861 Email: phugh@redroof.com Website: www.redrooffranchising.com About Red Roof® Red Roof is a leader in the economy lodging industry with franchised, corporate-managed, and corporate-owned properties, serving millions of guests each year. With coast-to-coast locations, Red Roof has over 360 properties in the U.S. The primary goal at Red Roof is to provide customers a savings without sacrificing comfort. The brand recently completed a $150 million investment to renovate and upgrade hotels nationwide with sleek and modern NextGen® redesign elements. The Red Roof NextGen hotels feature updated stylish and home-like interior and exterior designs that demonstrate the Red Roof dedication to providing customers with an affordable stay in a clean, comfortable, and modern room. The company is rolling out Red Roof PLUS+®, an enhanced offering at a value price, committed to “Adding More Wow to Your Stay!™”. Nice Place. Nice Price® is what every consumer can expect when they stay at any Red Roof location; and because the company has a single brand in their portfolio, Red Roof also offers franchisees One Brand. One Focus™. The Red Roof loyalty program, RediCard®, is the richest in the industry rewarding members with free nights with only 6,000 points, advance notice of special offers, and complimentary bottled water each day of their stay. Traveling with your pet? Don’t forget that at Red Roof ‘you stay happy, pets stay free’ as one well-behaved pet is welcome per room, nationwide. The Columbus, Ohio-based company has more than 4,500 employees. For more information or reservations, call 800.RED.ROOF (800.733.7663) or visit www.redroof.com. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 73 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Carl Long Sr. Vice President Purchasing Management International, L.P. Worldwide Sourcing and Procurement for the Hospitality & Gaming Industries 4055 Valley View Lane, Suite 100 Dallas, TX 75244 Tele: (972) 239-5555 Fax: (972) 239-7711 Website: www.pmiconnect.com INTRODUCTION Purchasing Management International, L.P., began its history in 1992 and is an independently owned Texas Limited Partnership. William Langmade is President and founder of the company with over 30 years of hospitality construction, management and purchasing experience. The company is headquartered in Dallas, Texas with operations in Las Vegas; Mexico, Central America, the Caribbean and India. The company has purchased and installed over $2 Billion dollars in hotel, resort and casino furnishings, operating equipment and systems worldwide and continues to be one of the leading independent contract purchasing companies nationally and internationally. PMI’s services include FF&E purchasing for hospitality renovation and new construction, operating supplies purchasing, and advisory services for capital budgeting, inventories, and due diligence for acquisitions and valuations. PMI is also the leading purchasing agent in the gaming industry. Purchasing Management International, L.P.’s mission is to provide consistent delivery of the best purchasing systems and trained personnel in the industry. 74 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Steve Spicer Hospitality Division, Sr. Executive Telephone: (720) 344-2760 Email: spicer.st@pg.com Website: www.pgpro.com About P&G Professional P&G Professional is proud to be a founding platinum member of AAHOA, and is excited to recognize outstanding family hoteliers in the AAHOA community. The Family Hotelier of the Year Award, presented by P&G Professional,™ will recognize an AAHOA member who has shown outstanding dedication to his/her family, business and the community. Our Brand Story P&G Professional leverages P&G’s scale, trusted brands, and strengths in market and consumer understanding to meet the specific business needs in a wide range of industries, such as foodservice, building cleaning and maintenance, education, hospitality, and care homes. At P&G Professional, we understand the importance of professionally cleaned spaces. Because first impressions and lasting experiences are so critical, we help our business partners apply innovative technology to the science of commercial cleaning. We understand what people want, and our products and services help businesses meet people’s needs. It’s a proven fact that customers notice, enjoy, and are heartened by clean, fresh-smelling environments. Thanks to P&G Professional, experiences are positive, people benefit, and not surprisingly, businesses thrive. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 75 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Don Mills 608 Southwest 8th St Bentonville, AR 72716-0001 Telephone: (479) 277-7196 Fax: (479) 277-7688 Email: don.mills@samsclub.com Website: www.samsclub.com Exceptional value and variety make it easy to outfit any hotel Enjoy terrific selections — and additional savings on truckloads — when choosing Sam’s Club®. We deliver the top brands you trust to keep your guests happy, for less. • Extra savings with truckload pricing • Fast, accurate price quotes within 24 - 48 hours • Free delivery on mattresses and televisions at SamsClub.com Sam’s Club® Discover® Get 1% cash back with your business membership (2% with business plus) everywhere Discover® is accepted.* Visit SamsClub.com/credit for more details. Sam’s Club® offers commercial LG and Samsung LED TVs featuring Pro:Idiom™ technology, EcoSmart™ power-saving modes, a two-year warranty and more. Sam’s Club is an authorized distributor of Serta® products to hotels and motels. Financing and quick delivery are available — ask your club manager about the convenience of shipping directly to your property for orders of 12 or more. • All comfort choices available • Choose from two-sided, easy-flip or one-sided, no-flip • 10-year warranty on Serta® Perfect Sleeper® Instant Savings You and your add-on cardholders each receive special savings from our top suppliers that are above and beyond our members-only prices.** Visit SamsClub.com/instantsavings for program details and terms and conditions. *Subject to credit approval. See “How to Earn Cash Back Rewards” in the Sam’s Club® Discover® credit application for complete details. Discover® and Discover® Network acceptance marks are service marks used by GE Capital Retail Bank under license from Discover Financial Services. * * All terms and conditions apply. Instant Savings items are subject to availability. Instant Savings are subject to valid dates. Select Instant Savings are available online. For Click ‘n’ Pull® purchases, Instant Savings can be redeemed at point of sale at the club with the primary membership card. State and local laws may require sales tax to be charged on the pre-discounted price of an item with an Instant Savings offer. To view your Instant Savings account, visit SamsClub.com/instantsavings or download the Sam’s Club app. Member must have a registered email on SamsClub.com in order to access the Instant Savings account page online. Visit SamsClub.com/ instantsavings for program details and terms and conditions. Instant Savings may take up to 24 hours to load to a membership account and will be valid for 30 days after joining. Sam’s Club Advertised Merchandise Policy — It is our firm intention to have every advertised item in stock. Occasionally, however, an advertised item may not be available for purchase due to unforeseen difficulties. We reserve the right to limit quantities to normal retail purchases or one-per-member or household, and to exclude resellers. We have done our best to ensure that all information in this piece is accurate and up-to-date. Errors and omissions occasionally occur and are subject to correction. Pricing and item availability may vary by location in Alaska, Hawaii, Oklahoma, Puerto Rico and Wisconsin and on SamsClub.com. © Copyright 2013 Sam’s Club. All rights reserved. Designed by Sam’s Club. Not all products may be available in all locations. Quantities may be limited on select items. Information is current at press time. All trademarks are property of their respective owners. Not responsible for typographical and pictorial errors. Unless otherwise noted, prices for items ordered at SamsClub.com do not include shipping costs. Go to SamsClub.com to see item-specific shipping costs and restrictions. Visit SamsClub.com/clublocator to find a club near you. Visit SamsClub.com for additional items. 76 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Mike Ryan Director of Sales 1 Concourse Pkwy, Suite 800 Atlanta, GA 30328 Telephone: (404) 307-3909 Fax: (770) 754-4662 Email: mryan@simmons.com Website: www.simmonshospitality.com What creates innovative, stand-out companies in today’s competitive business climate? Innovation! The Simmons Bedding Company has focused on innovation for over 135 years. During its history, Simmons invented the King size bed, the Queen Size bed and the “Hide-A-Bed” to name a few. In 1999 Simmons realized the mattress should not be a commodity for a hotel room but an integral part of the “guest experience”. With that “guest experience” a mattress should deliver on the promise the first and last day it was in the hotel room. Simmons accomplished this goal with the innovative “non flip”, “maintenance free” design of the 2000 Beautyrest Mattress. Now in 2007 Simmons introduces Beautyrest Mattress with EverNU(R). The first hotel mattress with a top panel that you can remove, replace and refresh as your needs demanded. This innovation sustains the quality of sleep for a guest, keeps mattresses out of landfills and insures the room is never out of service due to sanitation issues. Simmons has 21 plants including Canada, Hawaii and Puerto Rico. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 77 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Dipesh Parekh 103 International Dr Peachtree City, GA 30269 Telephone: (866) 383-0707 Fax: (678) 364-8643 Email: dparekh@rinnai.us Rinnai tankless water heaters feature a commercial-grade heat exchanger that ensures durability and performance in high-frequency applications like restaurants, hotels, schools and universities, and more. We also back every system with a comprehensive warranty. So whether you’re sanitizing, cleaning or just needing hot water at a set temperature, you can count on continuous hot water delivered efficiently and dependably. Tankless water heaters can save your existing and new construction commercial projects thousands of dollars in capital, operational and life cycle costs. Primary Contact Information Jennifer Liebig Associate Director 1 Star Pt Stamford, CT 06902 Telephone: (203) 964-6000 Email: jennifer.liebig@starwoodhotels.com Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with nearly 1,200 properties in 100 countries, and 171,000 employees at its owned and managed properties. We are a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, and Element®. One of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG) allows members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, please visit www.starwoodhotels.com. 78 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Jacqui Corso Sr. Manager of Field Marketing Time Warner Cable Business Class 1320 N. Martin Luther King Dr. Milwaukee, WI 53151 Telephone: (414) 908-4874 Email: jacqui.corso@twcable.com Website: www.twcbc.com Provide an At-Home Experience for Your Guests. Today’s travelers expect a higher level of in-room technology than ever before. Guests are now demanding a home-away-from-home technology experience, complete with a wide variety of digital and HD programming, FREE Video-On-Demand, a customizable on-screen channel guide and secure, wireless high-speed Internet access. Time Warner Cable Business Class offers a complete suite of hospitality solutions using cutting-edge technology to help elevate your guests’ experience, while working to boost the operational efficiency and effectiveness of your employees. Leverage the Benefits of Time Warner Cable Business Class. Customize Your Total Communications Solution - With Time Warner Cable Business Class, you get a Dedicated Hospitality Account Team that will work with you to customize a solution that is both scalable and cost-effective for your business. Whether you have a single site location or multiple properties, we offer configurable voice services that can be combined with video and Internet to help deliver a complete technology solution. Deliver Anywhere Internet Connectivity - Provide your guests with secure high-speed Internet access when and where they need it. Securely Connect Multiple Properties and Headquarters - Create private networks and connect multiple locations with Ethernet technologies that run over a wholly owned fiber-rich network. Provide Crystal-Clear Connection and Cost Savings - Offer a rich video experience with reliable HDTV programming and dependable voice connections. We Have a Dedicated Hospitality Account Team Ready to Serve You! Visit BUSINESS.TWC.COM/HOTEL to learn more about our hospitality solutions. INTERNET | VOICE | TELEVISION | NETWORK SERVICES | CLOUD SERVICES Primary Contact Information Shirl Bingel Executive Assistant 4301 US Highway One Monmouth Junction, NJ 08852 Telephone: (609) 514-9695 x512 Email: sbingel@guestsupply.com Website: www.guestsupply.com Sysco Guest Supply is the leading provider of operating supplies and equipment to the lodging industry. With product development and design, manufacturing, and a direct to property sales force, Guest Supply is the only vertically integrated company in the industry. From sixteen company owned and operated Sales and Distribution Centers, Guest Supply services over 26,000 hotels in the United States with a comprehensive product line that meets the needs of hotels at all market levels. In addition to domestic operations, Guest has wholly owned subsidiaries in Canada, China, Hong Kong and the United Kingdom and distributes products in more than seventy-five foreign countries. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 79 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Mark Novak Vice President - General Manager 901 N. Lake Destiny Dr., # 375 Maitland, FL 32751 Telephone: (407) 673-6130 Fax: (407) 673-2737 Email: mark.novak@travelmediagroup.com Website: www.travelmediagroup.com Travel Media Group is a leading provider of marketing solutions for the lodging industry. Started more than 30 years ago, our multi marketing solutions ensure hoteliers can be found and get chosen by travelers nationwide. Our brands include HotelCoupons.com, Florida Travel Saver and Travel Coupon Guide. Through our desktop, mobile websites, apps, call recording, reputation management and printed coupon guides, we provide hotel savings for the last-minute traveler and help hotels grow their revenue. Primary Contact Information Alice Turner 1035 Acorn Drive Nashville, TN 37210 Telephone: (800) 467-1218 x231 Fax: (775) 942-4251 Email: alice.turner@uniguest.com Website: www.uniguest.com/aahoa Promotional Pricing for AAHOA Members Through February 28, 2014: • Save $325 on U-Connect Remote Installations • Save 15% on new U-Connect systems Uniguest is the hospitality industry’s largest and most experienced provider of strategically designed guestfacing touch points, managing over 12,000 devices across 7,000 properties in 29 countries. For over 27 years, Uniguest has made it easy for its clients to adopt technologies that deepen brand loyalty and elevate the guest experience. U-Connect guest-facing computers and business center computers are secure and reliable so you can focus on what matters to you most – your guests. U-Connect provides session-based security, is customized to meet your brand standards and is available in 18 of the world’s most popular languages. It ensures a consistent guest experience, enhanced protection from intrusions and malware, web content filtration and enables your guests to stay productive with common office applications. Visit uniguest.com/aahoa for details. U-Sign digital signage, is the simplest, most effective and affordable way to keep your guests aware of your property’s activities, services and amenities with four pre-formatted content slides: meetings and events, restaurant menus, slideshow and local weather. Content updates are easily managed with a Web-based editor and custom content is available. An optional, subscription-based slide, displays realtime flight status data. UCrewTM, Uniguest’s own 24/7/365 in-house technical support team, is always here to help you and your guests via toll free phone and email. Uniguest, and I, look forward to working with you! 80 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Ron Thomas Vice President 220 S Walnut St. Muncie, IN 47305 Telephone: (800) 899-0000 Fax: (765) 287-2474 Email: ron.thomas@unitedagy.com Website: www.hospitalitymax.com As an AAHOA member partner for over 25 years, United Insurance Agencies has several benefits to offer AAHOA members. Our Hospitality Division has invested over 30 years of in providing specialized insurance programs to the hotel industry and your members. We have access to nationwide hotel programs and the ability to offer: • Three year guaranteed rates • Direct contract with Insurance Companies • Umbrella limits up to $200 million • Compliance with ALL hotel franchise insurance certificate requirements • Special hotel insurance programs • 15 dedicated hotel specialists at United Insurance Agency • United Insurance Agencies has been a Platinum Founding Sponsor of AAHOA for 25 years • Competitive and comprehensive insurance plans • Expertise, automation, industry knowledge, superior carrier contracts, and service minded tenured staff Primary Contact Information Mark J. Wilson | Affinity Marketing Manager 5775 General Washington Drive Alexandria VA 22312 Office: 703.461.5200 Direct: 571.282.2496 Email: mwilson@meridianone.com Website: www.meridianone.com The UPS® Savings Program Let AAHOA improve your bottom line with some of the most competitive rates available on shipping services with UPS®. Enroll in the UPS Savings Program and save up to 35% on a broad portfolio of shipping services, including: • Up to 35 percent on UPS Air letters including UPS Next Day Air®* • Up to 31 percent on UPS Air packages (1 lb.+)* • Up to 33 percent on UPS International imports and exports • Up to 19 percent on UPS Ground shipments • Savings begin at 70 percent on UPS Freight® shipments over 150 lbs. Whether you need your documents or packages to arrive the next day or are looking for the most affordable shipping option, UPS understands how important reliability, speed and cost are to meeting your business goals and your customers’ needs. With more service options, superior ground-delivery coverage and overnight delivery by 10:30 a.m. to more ZIP Codes than any other carrier, it’s time to put the power of logistics to work for you. To enroll and start saving today, visit savewithups.com/aahoa or call 1-800-MEMBERS (1-800-636-2377), M-F, 8 a.m. – 6 p.m. EST. *Discounts exclude UPS Express Critical® and UPS Next Day Air® Early A.M.® Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 81 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 2015 UPSCALE & UPPER MIDSCALE Primary Contact Information Roger Bloss, CHA Founder, President, CEO 2393 Townsgate Road, Suite 100 Westlake Village, CA 91361 Telephone: (805) 557-7300 Fax: (805) 557-7303 Email: rbloss@vantagehospitality.com Website: www.VantageHospitality.com Vantage Hospitality Group’s partners had a vision to develop a different hotel brand affiliation – one that offered a better Return on Investment and more world-class services and resources, and put the decision-making power in the hands of its hotel owners. In 1999, this vision became reality with the launch of Americas Best Value Inn. Vantage’s innovative Freestyle® Brand Affiliation offers hotel owners the best of both worlds – the resources of a hotel franchise and the freedom of a membership – and allows them the opportunity to be “In Business for Themselves, Not by Themselves.” This concept has revolutionized the hospitality industry, as the award-winning Americas Best Value Inn brand has broken all growth records by expanding from two to over 1,000 hotels in 12 years. Lexington by Vantage was added in 2007, premiering as the only membership brand in the upper-mid and upscale lodging segments. Hotel owners worldwide have embraced the Freestyle concept and Vantage’s brands, with rapid expansion also taking place in Canada, China, India, South Korea and the Middle East. Today, Vantage Hospitality Group is the 8th largest hotel company worldwide with over 1,000 hotels in just 11 years and has grown to include a broad spectrum of hospitality-related ventures. And the original Vantage partners are still overseeing their respective divisions, offering members stability and cohesiveness that have served as a foundation for their brands’ growth. AAHOA is probably best known for its 12 Points of Fair Franchising, but before these were even written in stone, Vantage had adopted most every point of that contract, and continues to be the only major national hotel brand to fully comply with all 12 Points. Primary Contact Information Riise Walker 631 International Pkwy, Suite 100 Richardson, TX 75081 Telephone: (800) 225-8464 Fax: (972) 907-2771 Email: noram@vcegroup.com Website: www.vingcard.com The world leader in hotel security technology, ASSA ABLOY Hospitality has products installed in more than 33,000 properties worldwide, securing in excess of 5.5 million hotel rooms. The ASSA ABLOY Group, a publicly listed company, is a world leader in security and hospitality systems. VingCard provides numerous electronic-locking system solutions, including traditional magnetic-stripe and smartcard systems, fully integrated PMS interface software solutions and worldwide service and support. Elsafe provides the only UL-listed (1037) hotel safe series on the market today in keypad and card-based models.Safes that include an internal power outlet to support recharging of laptops and camcorders also are available with a UL listing. Elsafe customers also enjoy the same worldwide service and support. The ASSA ABLOY Hospitality Group is dedicated to the hospitality industry. For more information on VingCard Elsafe, visit www.vingcard. com or www.elsafe.com. 82 Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 FRANCHISING COSTS Primary Contact Information Jeff Lyon Energy Consultant Four Tower Bridge 200 Bar Harbor Drive, Suite 400 West Conshohocken, PA 19428 Telephone: (610) 291-0621 Fax: (610) 514-2338 Email: jlyon@worldenergy.com Website: http://www.worldenergy.com/aahoa Let us make your next energy procurement the most successful ever. World Energy Solutions is a leading energy management services firm specializing in energy procurement. World Energy transacts electricity, natural gas and green power in every deregulated energy market in the U.S., meaning we are experts in the energy markets that matter most to you. To date, we have saved our customers, including fellow AAHOA members, more than $2 billion in energy costs. We know you have many options when it comes to purchasing energy, but no one has the experience (more than $40 billion in energy transactions), expertise (our market directors average 18 years of industry experience) and technology (award-winning online-auction platform) provided by World Energy. It is this great combination that consistently gets our clients the best available pricing in the market. As a hotel owner or manager, you’ve got a lot on your plate – we understand that and will work diligently to represent your interests. Whether you own one hotel or a portfolio of properties, we have the people, processes, technologies and supplier relationships required to get you the best price from the market each and every time. Learn more about how we can help you manage your energy costs. We are proud to join AAHOA as a Founding Member and look forward to working hard on your behalf. Primary Contact Information Gus Stamoutsos Executive Vice President, Franchise Development Wyndham Hotel Group 22 Sylvan Way Parsippany, NJ 07054 Telephone: (973) 753-8715 Fax: (973) 753-8724 Email: Gus.Stamoutsos@wyn.com Website: www.whgdevelopment.com About Wyndham Hotel Group Wyndham Hotel Group, part of the Wyndham Worldwide (NYSE:WYN) family of companies, is the world’s largest hotel company with approximately 7,440 hotels and over 638,300 rooms in 68 countries under 15 hotel brands: Wyndham Hotels and Resorts®, Ramada®, Days Inn®, Super 8®, Wingate by Wyndham®, Baymont Inn & Suites®, Microtel Inn & Suites® by Wyndham, Hawthorn Suites by Wyndham®, TRYP by Wyndham®, Howard Johnson®, Travelodge® and Knights Inn®. In addition, the company has licence agreements to franchise the Planet Hollywood Hotels, Dream® and Night® brands and provide management services globally. All hotels are independently owned and operated excluding certain Wyndham, Hawthorn Suites by Wyndham and TRYP by Wyndham hotels, as well as certain Ramada, Days Inn and Super 8 hotels outside of the U.S., which may be managed by one of the affiliates of Wyndham Hotel Group. Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015 83 2015 UPSCALE & UPPER MIDSCALE FRANCHISING COSTS 84 2015 UPSCALE & UPPER MIDSCALE Asian Media & Marketing Group USA Upscale & Upper Midscale Franchising Costs 2015