Paul Smith Speaks to Boutique Hotelier About Independent Hotels Becoming Part of a Franchise

Paul Smith, Managing Director in Duff & Phelps’ Global Restructuring Advisory practice, spoke to Boutique Hotelier about how about how independent hotels should consider becoming part of a franchise given the current market environment.

Paul commented, “Arguably now is the time for many to consider becoming part of a bigger family, one based on the franchise model to help prepare the business for the end of the lockdown. There are clear benefits to joining one of the bigger global franchise groups, including access to key money designed to be invested in facilities to get them up to an expected standard, but also to the marketing power of these groups.”

He added, “There is no doubt that hoteliers that decide that now is the time to undertake major capital works are brave, but many may see now as the time to access key money from the bigger franchise groups to do just that. For many franchisors this could also be seen as a unique time to offer independents a ‘golden hello’, using that key money to support cash flow as opposed to capital investment in the short term.”

Read the full article here.