Franchisors sweeten rebranding deals with financial incentives

02/6/2013 |

More hotel owners are being enticed to reflag their properties as franchisors add financial incentives to their offers, this feature says. For instance, Wyndham Hotels and Resorts secured rights to rebrand eight Holiday Inn properties owned by FelCor Lodging Trust in a deal that includes a $21.5 million annual guarantee setting a minimum yearly net operating income for each hotel. "The guarantee level is above what the hotels ever did as Holiday Inns, so we're basically guaranteed a return on our investment -- the termination fees and the incremental capital -- that we just couldn't say no to," said Stephen Schafer, a vice president at FelCor.

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