Originally Posted by
nicolas75
This is the franchise business model.
The GM, appointed by the hotel company to make sure standards of the brand are met, has not the ability to make major investments without the agreement of the owner.
What brings the hotel chain: brand recognition, commercial power (which is not nothing in the hotel industry, when 40% of the guests book a luxury hotel on the official internet site).
By the way, Kempinski hotels is a strong luxury brand in Germany, and there is no reason to believe that the company will run badly the property.
It's better than franchise - for the chain. No investment at all and full control. In my McDonald's the franchisee is the own taking the decisions, not an McDonald's employee. Different here....