Capital diversification has boosted hospitality, with investors drawn by asset investment and cash-flow returns. Before taking the step, a specialized market study defines the location, size and optimal timing of the investment, and reveals whether it makes sense to operate under a franchise —a relationship that in the first contract can extend up to 20 years.
The structure and support of franchises are attractive to those looking to safeguard their investment, trusting that the brand knows how to do its job well.
What benefits do I get with a hotel franchise?
- Accelerate the business's positioning.
- Create significant differentiation from competitors.
- Access to reservation channels, increasing the product's exposure points in the market.
- Access to national corporate agreements.
- Standardization of equipment and service.
- Guest loyalty programs.
The blind spot: operational functionality
It's worth reflecting that not all brands have the flexibility some products require; and if they do, they rarely take part in the construction process to guarantee the building's operational functionality. This is key to avoiding re-investments to fix what was done wrong: an over-invested project pushes back the break-even point.
So that day-to-day operations don't become a headache, the engineering design developed by someone with operating experience is essential during construction. At this stage, whoever will operate the hotel must understand the building's "fabric" and propose the right optimizations. Many brands bring products that work in other countries or destinations and don't always have the sensitivity to adapt ("tropicalize") the business —especially because many of them don't offer operation services.
The operator, from construction to turnkey handover
When the architecture team finishes, the "turnkey" handover should be carried out by whoever will run the operation. An experienced hotel operator can be involved from construction to validate the functionality of areas, the acquisition of systems and operating equipment, and to select the key personnel who will develop policies and procedures aligned with the brand.
A manager focused on optimizing resources keeps the property at optimal levels, while the sales team develops alliances and segments supported by previously defined positioning strategies.
What does a hotel operator do?
They are a strategist who orchestrates the business's operation: they build budgets, manage certifications and create strategies to optimize revenue, watching the sales channels to boost sales and adjust the rate (revenue management).
The operator is also an investment coach who keeps close contact with the franchise to make the most of that relationship: training programs, supplier negotiations and efficient renovation programs. Their strategic vision can make an important difference in operating performance, multiply financial results, deliver clear reports to the investor and advise them on new business opportunities.
End-to-end advisory, from idea to operation
The experience of JJ Díaz de Sandi & Asociados lets us integrate an advisory program covering the whole cycle: project validation, franchise selection and acquisition, construction supervision, engineering design, turnkey handover and, of course, hotel operation.
Choosing a brand or operating a hotel? We're with you from feasibility to operation, so your investment starts right and pays back sooner.
Talk to our team