Tips on Chain Hotel Franchising in Africa – The booming business markets in Africa are bringing new changes to the traditional hospitality industry.
With the advancement of consumer accommodation demand and standards, the individually branded hotels, which account for more than a half of the accommodation industry in Africa, have been unable to meet the Growing market demand. New hotels continue to open and an increasing number of hotel investors are targeting the African hotel market, Upgrading and change is imperative.
Making profit in the untapped hospitality market: is opening a hotel with an Individual brand or joining a chain hotel branding an enlightened choice? Every investor with an interest in Africa’s hospitality industry is thinking about this.
Comprehension of Joining the Hotel Chain
Many investors have doubts about joining a brand hotel chain. They think that joining a brand hotel chain requires a large amount of franchise fee and it would be better to spend the money on the hotel itself than to give it to others.
But they neglect one important point that is; they are paying the franchise fee in exchange of more than the brand name, but also the guidance of hotel construction preparation, materials procurement as well as the experience of hotel operation and management. These can guarantee the inv
estment return and they can also enjoy the delivery of more guests to the hotel.
The key factor for franchise chain hotel to gain the market share is to create more value for franchisees. This is especially true for hotel chains that have already succeeded in the Asian and European market.
They have a more powerful database as well as market research and development team, and they also have rich and mature experience in hotel operating, efficiency, management & services, franchise training system, guest’s acquisition efficiency, guests experience and other aspects.
Chain hotel’s membership system is an irreplaceable advantage. Joining a reliable hotel chain means a stable guests base rather than to be affected by the off season and peak season availability. This can at least ensure the stability of sales revenue above the average market.
At the same time, the brand chain hotel has obvious advantages in hotel preparation, operation and promotion, brand value and so on. Individually branded hotel preparation standards are difficult to control while brand chain hotel has set standard procedures in design, decoration, procurement and engineering construction guidance and other aspects so as to avoid Lengthy preparation problems.
Chain hotel’s brand value also means that the hotel operation has a significant interactive effect.
This can not only greatly reduces the difficulty of Sales & marketing activities, but also creates the opportunity to promote positive interaction and cooperation of the hotel related brands. This can help increase the hotel room rates, reduce the intermediary commission and continue to promote the development of the hotel.
Sunmei Group has more than 3,000 hotels in Asia and it always has been highly sensitive to the market. Like many investors, Sunmei Group also believed in the hotel business opportunities in Africa.
In 2019, it introduced three hotel brands to Africa tailored to the environment and culture.
The brands are IVY Hotel, OAK Hotel and RIZTI Hotel, respectively positioning as economy hotel (local four-star hotel standard), light-standard small-quantity economy hotel and five-star art business hotel giving investors more choices.
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From Room Amenities Service Quality, Individually branded Hotel versus Chain Hotel
Individually branded hotels are often decorated according to the preferences of Hotel Owners and there are great limitations in the hotel design & layout, decoration material, color. One’s aesthetic taste can’t represent that of the public, especially for a hotel designed for the general public.
Rather the hotels shall be designed according to the hotel Market and brand positioning and consumer demand. Hotel decoration relates to or includes the designing of each part of the hotel accordingly; individually branded it will delay the opening time and is more costly.
When it comes to Brand chain hotels, the decoration is based on the feasibility research of the environment and market demand. It will include unified planning and design of the professional space designer team so as to give consumers a good experience.
Guest Rooms Amenities
The guest room Amenities is often the first impressions for guests. Statistics show that the core needs of hotel guests are 24-hour hot water, comfortable sleeping environment, high-speed Wi-Fi etc.
However, individually branded hotels usually ignore the guest room Amenities and spend the cost on gym and spa; which is impractical. Due to the negligence of guest room details, hotel guests lose confidence in the Brand.
Franchise hotel chain has a competing market research mechanism; by developing room standards according to the feasibility Research; for example, the selection and supply of beddings, bathroom system and service network.
Increase spending where it is needed and cut it where it is not. For just one night, guests will be able to tell which hotel room is more comfortable for the same price.
The hotel reception is the first impression for the consumers of the hotel. Individually branded hotels usually employ untrained staff that lacks professionalism and this has a huge impact on the first impression of the guests.
The benefits of Franchising are a well trained staff, living up the standard of the guests. We deliver what we promise.
Entering our spacious and inviting lobby, being greeted with warm smiles and welcoming beverage soothes your fatigued nerves and helps you experience relaxation and comfort to the fullest.
Satisfied and happy guests are retained to the brand they value, this increases the hotel occupancy rate, a successful strategy for both the hotel owners and the guests.
Check-out is the most neglected service in the individually branded hotels. Many guests will put forward a variety of inquiries when checking out and individually branded hotels often choose to ignore the demands of guests, which leaves a bad impression of being irresponsible in the last chance of being able to retain guests.
Brand Chain hotels have a complete advantage over guest complaint mechanism and for any possible problems in checking -out, there are corresponding solutions. The consistent service can be deeply rooted in the hearts of the guests.
The above are just a few points to differentiate individually branded hotels and franchise hotel chain. The African hospitality industry is undergoing transition and it needs the brand empowerment of chain hotels to bring new imagination, experience and service quality to the industry.
Sunmei Group, the parent company of hotel brand Ivy Hotel, OAK Hotel, Rizti Hotel will provide the franchised hotel with leading hotel management system with its over 10 years professional experience in operations management, more than 50 million members as well as the deep understanding of Ethiopia’s hospitality market.
When the industry revolution comes, the best choice is to join the revolution, or will be eliminated by the times. Join Sunmei Group and reap the future of African hotel industry together. Join at the time when you don’t see the marginal effect and you’ll enjoy the entire bonus period of industry development.