Originally Posted by
nicolas75
The franchise business model has the advantage for the hotel brand to reduce financial risks and investments, by not being the owner of the property. But you can not have it all.
At the end of the contract, the owner has of course the ability to sign with another brand, if it considers that the former one is less interesting.
Sad for customers, but business is business.
It would be interesting to know why the owner decided to put an end at the contract with IHG.
that's right, and publicly held companies have much more pressure on them for short term results, and the management/franchise model provides better returns/multiples than holding real estate. Hence SCH, have been divesting of nearly all their freeholds in recent years.
better use of capital.