The relationship between hotel companies and franchisees continues to evolve. Over the past three years, it has become increasingly clear how important it is to continue fostering this relationship. Hotel companies flourish when franchisees are not burdened by onerous standards and restrictions, and franchisors are able to provide guidance and support where necessary. Sonesta is continuing to take steps to embrace the ongoing democratization sweeping the industry by supporting franchisees’ growth and development, without adding to their operating burden.
The most innovative brands in the industry are finding more ways to listen to their franchisees, understand their struggles and provide solutions that benefit hoteliers and guests in equal measure. Sonesta has committed itself to offer a great franchisee experience, so these hotel leaders can offer a great guest experience.
There are 600 Americas Best Value Inn
“Every hospitality leader must take a look in the mirror and ask themselves if they truly know the challenges associated with operating a hotel today,” said Keith Pierce, Sonesta EVP and president, franchise & development. “When was the last time you met with operators on the ground floor or took a walk through one of your properties? Operators are feeling the pressure to perform today. It’s up to hotel leaders to acknowledge their struggles and provide concrete solutions, which can only come from a place of mutual understanding.”
Sonesta is offering new franchisees a flexible fee structure from a flat per-room, per-month fee and shorter term agreements for Americas Best Value Inn, Canadas Best Value Inn, Signature Inn, GuestHouse Extended Stay and Knights Inn to more traditional fee models. Providing this level of predictability with a flat fee allows franchisees to set certain cost projections and profitability thresholds and invest their time into improving the guest experience.
These models have been made available as part of Sonesta’s commitment to offering the simplest communication to its franchisees. Running a hotel today is not as easy as it should be, so Sonesta is finding ways to simplify the franchisee relationship. What sets Sonesta apart is that it continues to own and operate hotels of its own and does not set terms for franchisees that would not be honored at its owned properties.
“We recognize guests hate when travel plans abruptly change, and we never want to put our franchisees in the same position,” said Brian Quinn, Sonesta’s chief development officer. “The company’s operating structure allows its leaders to deliver fast, friendly and flexible service to all its franchisees. These services include the capacity to execute new hotel agreements within 30 days from application to execution, the availability to respond to franchise needs or concerns personally and reasonable brand standards set by owners, for owners. We understand what is necessary to advance our brand and help franchisees continue to thrive without the unnecessary hoops that are often associated with corporate ownership.”
Thanks to these efforts, the Americas Best Value Inn and Canadas Best Value Inn brands continue to thrive. Today, there are 600 ABVI and CBVI hotels in North America, and the brands continue to provide the best value and quality economy hotel experience on the market while simultaneously reaching No. 2 in J.D. Power’s 2022 Guest Satisfaction Index. All this despite the lowest fees in the economy segment.
“Quality, integrity and service remain immutable standards for achieving success in hospitality, but not just between hoteliers and guests,” Pierce said. “Franchisees are placing trust in their brand owners, not only that they will deliver on their promises today but that they will also live up to the standards they have set in the past. Hospitality is quick to react to guests’ changing needs, and franchisees need to ensure they are aligned with a brand that is adopting standards and practices that support their continued growth.”
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