Originally Posted by
Sisosig
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I have made up the percentages below, but they are probably close to reality.
Per sold room per night this goes to Hilton:
- 5% - To be part of the CrestHil franchise.
- 3.5% - Marketing fee, to promote the brand.
- 1.5% - To use the reservation system.
- 5% - Only if the customer is a Hilton Honors member. It covers the Honors program and the points awarded to customers.
- ?% - Maybe some other percentages.
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This is an ongoing answer! Please don't post any comments or questions until this post is finished.
I hope you'll forgive me jumping in tie off the fee-specific diversion (and look forward to the final answer on the main research) but fortunately for us the brand fees, both one time and ongoing -- as they are today and not necessarily as they were or as they will be -- are specified in the publicly available Franchise Disclosure Document (for Hilton Garden Inn:
https://hmd-wp.go-vip.net/wp-content...024-US-HGI.pdf) in Item 6:
Monthly Royalty = 5.5% of gross room revenue (GRR)
Monthly Program Fee = 4% of GRR
OnQ Connectivity Fees - between US$815 and $1485 per month
Hardware/Software Maintenance & Support - between US$1120 and $2540 per month
OnQ Email Fee - $7.92 to $12.50 per account per month with a minimum of 3 accounts required per property
Hilton Advance Program - 1.35% of digital direct revenue (maximum $30 per stay)
Hilton Honors - 3.6% of the total eligible folio (unless the property enrolls that guest in Honors -- making the guest's first stay essentially free to the property)
There are dozens of other optional fees as well for various marketing/incentive programs (e.g. tour organizers, etc.)
But I would also posit that (a) total fees alone is not necessarily indicative as one could argue that as Hilton has a better reach in many cases better value for a non-declining property -- and also frequently the cost of a Property Improvement Plan (PIP) at franchise renewal will drive a hotel with mediocre financial performance to downflag (within or outside of the family) rather than spend the money to "improve" to retain the brand.
But looking forward to the broader CrestHill evolution history