Victor V.T. Tofan’s Post

The Asset-Light Strategy in the Hotel Industry. When you stay at a Hyatt, Marriott or a Hilton you are experiencing a hotel "asset-light" strategy. What does that mean? These fast growing hotel chains are focusing on franchising and managing hotels rather than owning them. Here’s what’s happening and how it benefits smaller companies. What’s Happening in the Industry Big hotel chains typically don’t own their properties. They franchise their brands or manage hotels for owners, earning fees without the hefty costs of owning real estate. By not owning hotels, these companies reduce financial risk and can focus on enhancing their brand, customer service, and loyalty programs. This strategy allows them to grow faster and more efficiently. This model lets hotel chains expand quickly worldwide. They partner with property owners who invest in building or converting hotels to meet brand standards, allowing for rapid growth without huge capital investments. #assetlight #hospitalityindustry #hotelmanagement #franchisebusiness #hospitalitybusiness #hospitalitytrends #businessstrategy #hotelinvestment #hoteloperations

When guests stay at a hotel chain like Marriott, Hilton or Hyatt, these companies don’t typically own the property. They may not even run it. So what is happening in the hotel industry and what benefits are smaller companies receiving from these “flags” in the industry? WSJ explains why hotel companies like Marriott and Hilton actually own less than 1% of their properties and why hotel owners like MCR Hotels choose to fly a flag or go independent. https://lnkd.in/dqmiYvTc

This is really #interesting! Do you know who manages the hotels you work with? You might be surprised…The hospitality landscape has changed quite a bit over the years and more often than not, your guests and clients are interacting with a franchise management company. That's where Davidson Hospitality Group comes in. Check out this video for an in-depth look at the value of third-party hospitality management companies: https://lnkd.in/edP624fF #DavidsonHospitality #DavidsonDifference #HospitalityManagement #HotelManagement #hotelsandresorts #traveladvisors #travelagents #corporatetravel #travelmanagers

How Hotel Chain Operates...

#CREF Academic Director Steven Carvell, Professor of Finance at Cornell University’s SC Johnson College of Business, commented on the rise in hotel parking fees, highlighting the industry's challenges. He stated, "Hotels are struggling with shrinking margins. They have fewer levers than airlines." Carvell's observation emphasizes the difficulty hotels face in maintaining profitability amid increasing costs, particularly in comparison to airlines, which have more flexibility in managing their expenses. This insight provides valuable context on the economic pressures facing the hotel sector. #CornellUniversity #HotelTrends #HotelIndustry Click here to read more: https://lnkd.in/e5GPuMRZ

Owning real estate ties up a lot of cash and can be risky, especially during economic downturns. By franchising their brand instead, hotel chains avoid the burden of property ownership and can expand much faster. Hotel chains can focus their resources on building brand recognition, creating loyalty programs, and developing efficient hotel operations models. The "asset-light" approach is a growing trend in the hospitality industry where hotel chains minimize ownership of physical properties and focus on brand management and franchising. #hospitality #revenue #management #corporate #strategy https://lnkd.in/g4PvSaWN

Dive deep into the world of hotels and hospitality with our new series - The History Editon. Know more about the legacy that we all stand on and appreciate all the work then went into building the industry as it is today. . . #hospitalityhistory #hotelsandhospitality #ExcellenceInService 

"While upscale hotels lead ADR charge, investors focus on economy assets’ long-term stability." Find out the latest economic and hospitality trends impacting the Charlotte area in the 2024 Hospitality Outlook Market Report. Read the full report here: https://lnkd.in/gHSyVWvK Regional Manager - Ben Yelm #MarcusMillichap #CommercialRealEstate #CRE #MarketTrends #CharlotteCRE

Great video! Just added to our content for Principles of Lodging, definitely check it out!

Great video explaining the dynamics of the hotel business!