Brand fees are called into question over rise of third-party demand drivers

11/29/2012 | HotelNewsNow.com

A number of hotel owners and asset managers have raised concerns about the rationale behind the collection of franchise fees by hotel brands as demand driven by third-party companies continue to rise. "Hotel owners, when they negotiate new management contracts, really need to think about this given there's not one source of demand anymore," said Michelle Russo, president of asset management and ownership firm HotelAVE. The concern gained more attention after Expedia launched its new agency model.

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