Hospitality and leisure — franchising and industry innovation

The majority of hotels operate under a global brand either owned by the operator, leased by the operator, run by the owner (or its manager) under franchise or run by an operator on behalf of the owner under a management agreement. Many global operators have pursued asset-light strategies over the past decade, and franchise and management agreements have now become the preferred type of contract.

In this publication, DLA Piper looks at the asset-light strategies of global hotel operators using a ‘quick to view’ educational referencing guide, as well as looking at technology interoperability issues within hotel franchising.

While many protagonists described the hospitality market of 2012 as ‘uncertain’, the phrase being used for 2013 seems to be ‘modest’. The uncertainty of the ‘fiscal cliff’ in the US (which inevitably affects all world markets) has been replaced by a ‘fiscal ceiling’. Although economic performance continues to vary greatly around the world, performance by some countries in Asia Pacific has largely remained stable and it is predicted that this will continue in 2013. However, hotels may achieve modest price inflation throughout the Asia-Pacific region but specific results will vary widely by country…

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