Magnuson: Big Hotel Brands Ignoring Calls for Fair Franchise Reform

Magnuson Hotels | February 17, 2023

Asian American Hotel Owners, who own more than 60% of total hotel rooms in the USA, say paying franchise corporations up to 20% of the room sales is not sustainable in today’s economy. The group, which employs 4.2 million US workers and is responsible for 1.7% of the US GDP, states that today’s generation of hotel owners cannot be profitable under the current US hotel franchise pricing and requirement structure, most of which was initiated in the 1990s. This week, Choice Hotels joined Marriott in dropping support of the Asian American Hotel Owners Association, distancing themselves from rising calls for hotel fra...