Summary of "Why Marriott, Hilton and Hyatt Don’t Actually Own Most of Their Hotels | WSJ The Economics Of"
The hotel industry has shifted towards a franchising model where major brands like Marriott, Hilton, and Hyatt no longer own most of their properties. Instead, independent owners operate the hotels under the brand’s name, paying franchise fees for the association. This allows the brands to expand rapidly without the financial risks of real estate ownership. The brands focus on providing data and support to help owners maximize profits, optimize room rates, and target wider customer pools through loyalty programs. While the franchise model is prevalent, luxury hotels are often still managed by the brand itself to maintain control over the guest experience. Overall, the shift to franchising has led to more branded properties available to consumers.
Methodology:
- Major hotel brands shifted from owning properties to franchising.
- Independent owners operate hotels under brand names.
- Brands provide support, data, and assistance to optimize profits.
- Loyalty programs incentivize guests to book within the brand.
- Luxury hotels are often managed by the brand for a higher level of guest experience.
Speakers:
- Narrator
- Tyler
