In the constantly evolving hospitality sector, expanding strategically is necessary for longevity and success. Amid global trends such as sustainability and technology-driven market disruptors, franchising emerges as more than a business model; it’s a strategic approach to scaling up hotel operations and embracing innovation. As Valor Hospitality Partners (Valor) celebrates 10 years of excellence and expertise in franchising in Africa, our Co-founder and Managing Partner, Africa, Middle East & CIS, Michael Pownall offers these insights about franchising as a growth engine:
At Valor, our dedication to our guests and shaping the sector in the regions where we operate – Africa, the Middle East, CIS and the Indian Ocean – has always been central to our story. The way we see it, franchising isn’t merely about expanding our reach; it’s about making a real impact on the industry’s evolution.
And evolving it is rapidly, with guests’ needs, expectations and behaviour constantly changing. Technological advances are helping hoteliers up their game, while sustainable business practices have become an imperative. Adaptability is now the key ingredient for staying competitive and priming growth.
With the franchise market expected to grow at a compound annual growth rate of 9.58% until 2027 and increase by US $1,6 billion, it’s a dynamic and exciting time to be part of the industry. The main benefit of the franchise model is that it offers both flexibility and control – hotel owners can hand over the management of their daily operations while retaining the autonomy of their properties. They also capitalise on being part of a leading global brand, and gain access to resources and support from a team of experts in the region.
Franchising has brought remarkable success to our partner properties during our 10-year journey. Their owners share our vision for success and commitment to the highest standards of excellence, underpinning the importance of alignment between owners, franchisors and franchisees around goals, ethics, and business practices.
Another benefit is a consistent brand identity across franchised properties, which ensures instant recognition and differentiation amid the competition, resulting in more business and repeat stays. Franchisees also enjoy efficient and streamlined hotel operations, which ensure that all locations uphold the same standards of service and level of appeal.
Additionally, centralising departments, such as finance, marketing, revenue, sales and HR, results in greater cost-effectiveness. Ultimately, the guest experience is enhanced, making each stay seamless whilst reinforcing brand identity.
Take for example, the voco Johannesburg Rosebank. As one of IHG’s fastest growing brands, with more than 100 properties signed and opened globally since 2018, voco offers a conversion-ready design and operations framework. The brand empowers owners to carry their unique vision while ensuring each property’s legacy and historical connections to the surrounding community are preserved.
Ultimately, the strategic adoption of franchising isn’t purely a transactional process; it’s a dynamic journey that requires careful consideration and proactive engagement on the part of both the hotelier and franchisor to forge a mutually beneficial partnership. With Valor Hospitality’s decade of experience and knowledge, we assist hoteliers to easily navigate the franchising landscape, creating opportunities for growth, innovation, and long-term success.
