Homework 4

 

During my quiz I had made an assessment to start a franchise and I would go into the hotel business my thought process was that you will always need to have a place to stay well on the road or on a vacation trip. To be honest the hotel business is not a risky business, if you start it in a needed area then has great service.

So I had picked IHG (Inter Continental Hotel Group). IHG is a leading global hospitality group. It has over 4,400 in over 100 countries and territories. They lead leadership positions in 15 of the 20 largest hotel markets in the world. IHG started franchising in 1954, they operate several hotel chains but if it was up to me I would go into Holiday Inn hotels and resorts. Since Holiday Inns are well know it won’t be a problem of getting it out their but the area in which you place the hotel. As I read thru both websites including the company’s website just verified my opinions about going into the franchise. But what did grab my attention was the initial start up cost was at least 1 million dollars. But on the company’s website it had a chart and had financing options and it had a category of third party. So I thought that maybe I can get an investor to invest, or maybe have a partnership with someone with just the money aspect, when I ever need money he would contribute, and I would manage the whole hotel. 

 

 

Additional perks are for marketing wise IHG has Ad slicks, National media, and regional advertising. I would never have to worry about the hotel getting any advertising. But a growing problem would be other hotels that are in the same area that my hotel would be in, but a little completion is good for you because it makes you think in different ways to have better hotel.

After all of my research thought that all the information that I need to operate such a business was there on either website and if I had more question I could shoot an email to the group themselves. And since they have been doing this for a long time I would love to be a part of the tradition