HoCoSo launched at the Hotel Alternatives Investment Conference at the Jumeriah Hotel Carlton Towers in Knightsbridge, London on Wednesday 3 February 2016:

This conference was full of positive enthusiasm, by panelists and participants, due to the dynamic and rapid growth of Hotel Alternatives, which include extended-stay hotels, serviced apartments, student housing, hostels, etc.

The main extended-stay / serviced apartment brands are not yet ready to franchise…..

Jonathan Humphries, the Chairman of HoCoSo asked the CEO panel consisting of CEO Navneet Bali from Meininger Hotels, COO Guus Bakker from Frasers Hospitality Group, CEO Tom Walsh from StayCity and CEO & President Sean Worker from Bridgestreet, whether they would consider franchising as a growth model for their businesses going forward.  Almost unanimously, the CEO’s feedback was to continue their company’s focus on their management and / or ownership (or leasing) business model for expansion purposes.

We’ve obviously heard this before with the big branded hotel companies, before they switched to franchising to accelerate their growth targets. Hotel brands typically follow a life-cycle of brand creation which is own, manage / lease, and then franchising, relinquishing control as they become more comfortable with their brand message and operating partners.  As their brands become stronger in the market place and they gain portfolio traction, we’ll see if their strategy changes in the future…..

The conference was expertly and professionally hosted by Andrew Sangster, Editorial Director of Hotel Analyst and Owner of ZeroTwoZero Communications.