RECR 250 Lecture Notes - Lecture 4: Kemmons Wilson, Franchising, Forbes Travel Guide

• School: Chico State University
• Department: Recreation and Parks Management
• Course: RECR 250
• Professor: Morgan Geddie

Document Summary

Hotel development & ownership: 3 types. Real estate investment trust: franchising/mgmnt contracts are top 2 forces. Franchising in the us: began in us 1907 when ritz-carlton franchised name in nyc, howard johnson began franchising hotels in 1927. Franchising allowed for rapid growth/expansion: holiday inn (now part of intntl hotel corp. ) grew by franchising in 1950s. Kemmons wilson began chain after poor fam vaca. exper: hilton/sheraton began franchising 1960s. Franchising trends: franchise cont. to gain in pop. for many reasons inc. : Lodging franchise basics: allows company to expand rapidly using oth. ppls $ for growth, franchisors grant rights to use their trademarks, op. procedures & oth. bus. prac, franchise fees typically 3-4% of room rev. Central res. system only accounts for 17-26% of resos. Pros/cons to franchise company: franchise company benefits from arrangement by receiving: Careful selec. process req. when choosing franchise partners.