Comment on which franchise is the best deal financially.
What other considerations are important in deciding which franchise is best for your hotel?
Calculate the estimated Franchise Fees for the first year for Aloft and Ascend.
assume you are opening a hotel with 100 rooms, and Average Daily Rate (ADR) of $75 and an anticipated 60% occupancy rate. You must first calculate estimated revenue for the year, then calculate the franchise fee. Then add the initiation fee.
Be sure to show your calculations.
Aloft = $60,000 initiation fee plus 5.5% of Gross Room Revenue(GRR) for Royalty Fees and 4%of GRR for Marketing Fees
Ascend = $37,500 initiation fee plus 4% Gross Revenue (GRR) Royalty Fees + 2.5% GRR Marketing Fees
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