It might come as no surprise that the hotel industry went into quite a tailspin this past year. There were a total of over 1 billion room vacancies throughout the year, a record-low for the business.



Now that COVID 19 is slowing down, the industry will likely bounce back and may even experience a boom. This means that anybody who's looking to start a hotel franchise or help with an existing one may want to strike while the iron is hot.

How do you buy a hotel franchise, though, and how do you turn it into a successful business? We'll discuss that in this article.

1. Research Hotels

Before deciding which hotel to invest in, you'll need to figure out which ones are available and which one fits your needs best. There are a lot of different ways to do research, but one of the most effective is to stay for a while as a guest.

This will give you an impression of the day-to-day operations of a hotel. You'll likely have to stay there a few nights to get an accurate reading of the place. After all, every business has its bad days, good days, and just plain weird days.

It'd also best that you don't tell the hotel that you're looking to become a franchisee. That might cause them to treat you differently from other customers.

2. Talk to Experts

One of the worst ways to start out a business is by yourself. This has nothing to do with your personal traits or abilities. 

It has to do with experience. You're just getting into the hotel business, so it's best to consult people who have experience in the business. Among those you should definitely consult are other franchisees and a franchise consultant.

It might also be a good idea to check in with other businesspeople you know, even if they're not in the hotel business. Despite all the different business types, most of them require the same two skills: money management and communication skills.

3. Negotiations

Before agreeing to buy anything, do thorough research and try to negotiate. Negotiations can be tough. Both parties often go in with the expectation that the other side might try to swindle them.

As important as caution is, though, you also have to try to understand and sympathize with the other person. Try to work with them without surrendering to them. Ideally, you should be able to find a compromise that both of you can benefit from.

It's worth noting that your most powerful tool in negotiation is the ability to walk away. If you're not making any progress, and suspect the franchisor has no intention of meeting you halfway, don't go any further. It's not worth your time or your frustration.

What to Know About Buying a Hotel Franchise

Getting involved in a hotel franchise can be a great investment, but it's nothing to go into blind. We've talked about some of the things you can do to prepare yourself, but there's no such thing as too prepared. Feel free to take any other precautions you think might help.

If you want to know about franchising and how it works, please visit our site. We encourage you to contact us if you have any questions or concerns.