Hotel franchise investment hits $3.3bn mark

A hotel franchise investment is on track to hit a record $3bn this year, with hotel franchises valued at $1.5bn and the number of units forecast to reach a record 3.5m.

The hotel franchise is the property rights for the properties used in the Potter franchise, and is owned by hotel operator Holiday Inn Worldwide.

The company said the franchise investments are set to be followed by the acquisition of the entire Potter franchise from Holiday Inn, and a significant increase in the value of the franchise.

“We are delighted to see the hotel franchise growing in value and looking forward to the success of the Potter brand in 2021,” said Andrew Jones, chief executive officer of Holiday Inn International.

“Holiday Inn Worldwide is very pleased with the momentum the Potter property has created and is confident that our franchise can achieve the highest possible value.”

Holiday in its 2017 financial results said the Potter and Harry franchise had grown to a global reach of more than 8 million hotels.

In November, the Potter Hotel in Melbourne became the first hotel franchise in the world to become fully operational.

The Potter franchise was launched in 2005, and the franchise has been sold to the hotel operator to help boost profitability.

In the first quarter of this year Holiday Inn booked a $9.2m profit, up 9.4 per cent from a year earlier.

In 2021, the hotel has also invested $8.6m into its franchise.

The new investment in the franchise comes on top of a $2.3m investment last year, and comes at a time when other hotels are struggling to meet demand in Australia.

The number of hotel franchises is forecast to hit 3.6 million units in 2021, up from 1.4 million units currently, Holiday Inn said.

The investment is likely to provide a boost to Holiday Inn’s bottom line, with the company currently struggling with low occupancy levels and rising operating costs.

The brand has been under pressure since the launch of the film in the UK in May.

Holiday’s CEO Andrew Jones said the company was seeing a significant growth in hotel franchise revenue.

“This is a great opportunity for Holiday Inn to strengthen its position in the hotel business and to become a more important part of the community,” he said.

“It is also the perfect opportunity for us to invest in the brand to become more relevant to the Australian market.”

Holidays, which owns Holiday Inn Melbourne and the Potter hotels, said it was pleased to have such a large investment into the Potter franchises.

“The Potter hotels are a highly-respected brand with a strong reputation, and we look forward to continuing to support them in their long-term future growth,” the company said.

Topics:business-economics-and-finance,financial-markets,business-administration,investment,industry,industries,property-industry-and/or-franchise-business,holiday-inn-france,melbourne-3000,vicSource: News24