The Secret to Successful Hotel Franchising?
It’s Not One-Size-Fits-All

by Russell Cool, Director of Franchising, Minor Hotels Australasia

As hotels pursue global expansion, franchising’s appeal to accelerate the growth strategy is rising, with hotel brands seeking like-minded owners eager to build their business side-by-side.

However, success in this space requires a flexible approach rather than a standardised model. Owners no longer want a cookie-cutter strategy, they want partners with global reach and expertise, whose approach is designed to align with their specific strengths, and needs.

Many hotel brands try to impose a standardised franchise model across all properties, but success lies in flexibility, which is why Minor Hotels stands out as a franchising partner. In addition to our strong brand recognition, global network of hotel brands and robust Minor Discovery loyalty program, we remain agile and approachable, working with individual owners to tailor our franchise model to fit each hotel and its market conditions to improve financial returns.

Our goal is not simply to expand our footprint, but to assess each opportunity based on its potential, merit and brand alignment, with the aim of ensuring each hotel performs at its best by striking the ideal balance between maintaining control over key decisions with leveraging the credibility, resources and brand recognition of an established brand.

Minor Hotels’ franchise system accommodates a variety of property types and market segments. For all-suite and apartment hotels, the Managed Letting Rights (MLR) model under our Oaks Hotels, Resorts & Suites and Avani Hotels & Resorts brands provides a structured and effective way for owners to maximise returns. Meanwhile, our broader portfolio includes internationally recognised brands such as Avani, NH, and NH Collection, catering to the mid-market and upper-upscale segments, giving owners the opportunity to align with the brand that best suits their business goals.

At the same time, the rise of Third-Party Operators (TPOs) is reshaping the industry, particularly in Australia. Companies such as Trilogy, Gatehouse, and 1834 are helping hotel owners manage their properties under franchise agreements, ensuring that operations align with the franchisor’s standards while allowing owners to focus on long-term performance.

Both conversions and new-build franchise opportunities play a role in our expansion strategy. Of course, converting existing hotels into franchised properties can yield immediate benefits, as owners can quickly integrate into a proven system and enhance performance. At the same time, while new build projects require more time to develop, they allow for greater control over the property’s design and positioning within a given market and create long-term opportunities for growth.

For hotel owners, the benefits of teaming up with a major brand are clear: accessing national and global booking systems to showcase the property to a wider audience; on-the-ground sales and account support to secure high-value bookings; access to established loyalty databases to attract repeat guests; leveraging the buying power of the Minor Hotels brand and umbrella network to benefit from economies of scale to increase profit margins; risk mitigation compared to operating independently.

And yet, despite the opportunities franchising presents, it is not without its challenges. A successful franchise partnership requires careful and considered alignment between franchisor and franchisee. Expectations must be clear from the outset, communication must be open, a commitment to upholding brand standards is critical, and the ability to adapt to market conditions without compromising operational consistence cannot be overstated. Additionally, all parties must comply with the increasingly strict regulatory requirements of Australia’s Franchise Code.

Ultimately, franchising provides significant benefits for both hotel owners and guests. Owners gain access to an established brand, operational expertise, and economies of scale, while guests enjoy the reliability and quality assurance that comes with a trusted name, and more opportunities to experience Minor Hotels in a growing number of locations, from capital cities to coastal holiday hotspots and regional hubs.

Franchising is set to remain a key driver of growth for our business. By continuing to fine tune our strategic, tailored approach, Minor Hotels will be well-positioned to further extend our presence and market penetration whilst delivering measurable value to franchisees and enhancing the guest experience which is, after all, the primary reason we do what we do.