A hotel franchise helps independent owners and investors tap into:

• Global brand recognition & loyalty programs that attract more guests.

• Proven operating systems with staff training, SOPs, and tech platforms.

• Access to distribution via OTAs, GDS, and direct brand booking engines.

• Stronger sales & marketing through brand campaigns and corporate tie-ups.

• Higher occupancy & ROI compared to independent hotels.

Spectra ensures you choose the right brand and agreement for your property while maximizing long-term profitability.

There are three common models for tying up with a hotel brand:

• A Franchise Agreement offers maximum owner autonomy and typically lower fees, but requires the owner to have or hire competent management. It’s a fit for experienced owners or standardized hotels where the owner wants to optimize profits and maintain control, using the brand mainly for its name and network.

• A Management Contract offers turnkey professional management by the brand, ideal for owners who want a hands-off approach or lack hotel expertise. The trade-off is higher fees and surrendering operational control. It’s common for upscale properties and is a “safe” choice to ensure brand quality, albeit at the cost of the owner bearing full financial risk while paying the operator regardless of performance (aside from incentive fee variations).

• A Manchise Agreement is a hybrid that tries to balance stability with flexibility. It gives the owner a brand’s management support upfront (to ensure a strong launch and training period) and the freedom to assume operations later, which can reduce fees and increase owner control. This model is gaining traction in India as a “middle ground” – it can reduce conflicts and align long-term interests by clearly defining how an owner can step up once they are ready.

Ultimately, the choice depends on the owner’s experience, the market, the brand’s strategy, and the nature of the property. Many large hotel companies are now adept at offering all three models as needed – for example, Marriott’s expansion in India has been fueled by a mix of management contracts and franchises , and it has shown flexibility in considering manchise arrangements for certain projects . IHG notes that in mature markets/segments they often prefer franchising, whereas in luxury or less mature markets they lean towards management . In India’s hotel industry, we are witnessing increased experimentation with these models, with franchising and manchising maki

A: When partnering with a hotel brand, expect to pay an initial joining fee plus ongoing fees tied to your hotel’s revenue. Most brands charge an initial fee (often a set amount per room/key) when you sign the agreement . After that, royalty fees are typically around 3%–5% of your room revenue for franchises . In addition, brands levy marketing, loyalty, and reservation fees (usually a few percent of revenue or a fixed amount per room) to cover the chain’s advertising and central reservation system costs . If you sign a management contract, the operator will take a base management fee(commonly ~2%–4% of the hotel’s gross revenue) plus an incentive fee (about 7%–12% of the gross operating profit) as their compensation . Similar central marketing/reservation fees apply under a management deal, and many brands also charge a one-time technical services fee for things like design and setup support (often on the order of $1,000 per room) . Overall, the franchise model tends to have a lower total fee burden than a full management contract – since in a franchise you are doing the day-to-day work – but under a franchise you’ll also handle all operating expenses and staffing on your own.

A: Suitability depends on your hotel’s size, quality, and target segment. Luxury brands have the strictest requirements – they typically expect a high level of facilities (for example, upscale rooms, multiple restaurants, a spa, etc.) and usually a larger number of rooms to justify full services. Midscale and budget brands are more flexible and can work with smaller or limited-service properties. In fact, some budget franchises in India (e.g. OYO Rooms) require as few as ~10 rooms as a minimum , whereas a 5-star luxury chain might only consider a property with far more rooms and amenities. You should honestly assess where your property fits: if it’s a modest independent or boutique hotel, a midscale or boutique-brand affiliation might be more suitable, while a high-end resort could align with an upscale or luxury brand.

Keep in mind that brands also have standards your property must meet. You may need to invest in upgrades or renovations so that your hotel’s quality and safety meet the brand’s criteria. Many major hotel companies now offer “soft brands” or collection brands to accommodate unique boutique properties that don’t strictly match their usual prototypes . This means even if your hotel has a unique character or smaller scale, it could join a larger chain’s network through a soft brand (allowing you to keep much of your property’s individual style while benefiting from the chain’s marketing). Also, consider the brand category and market fit: a budget or midscale brand generally makes sense for a smaller city or a limited-service hotel, whereas a luxury flag would require a prime location, significant service offerings, and higher operating costs. Lastly, check the brand’s availability and interest in your area – hotel companies typically avoid having two hotels of the same brand in one locality, and some brands may be actively expanding in your region while others might not. Choosing the right brand is about matching your hotel’s profile and guest expectations with the brand’s positioning (e.g. don’t put a budget brand on a luxury villa resort, or vice versa). When in doubt, consult with the brand’s development team or hospitality advisors to find the best fit.

A: Tying up with a well-known brand can bring many benefits to an independent hotel. For one, you gain access to the brand’s marketing and distribution network – this includes their online booking channels, global sales reach, and often a large loyalty customer base, which can significantly boost your reservations . Being part of a reputable brand also increases customer trust: travelers know they can expect a certain standard of service and safety, which can help improve your occupancy and room rates. The brand will provide operational support as well, such as staff training, standardized operating procedures, and quality control, to help you run the hotel more efficiently . In short, you get the advantage of the brand’s reputation, systems, and expertise, which can translate into higher visibility and better financial performance for your property .

As for control, the extent to which you surrender control depends on the type of arrangement. If you go with a franchise, you will continue to own and manage the hotel day-to-day – meaning you hire the staff, set budgets, and make operational decisions (all while following the brand’s standards and guidelines) . In a franchise tie-up you do not lose day-to-day control, but you do commit to maintaining the brand’s quality expectations. On the other hand, under a management contract you effectively delegate operational control to the brand’s management team . The brand will install their managers (for example, the General Manager and possibly other key executives) to run the hotel, and they make the daily decisions – you step back from operations and act more as an asset owner receiving reports and profit share. Many independent owners in India prefer the franchise route (or a manchise/hybrid model) precisely because it lets them retain a say in running the property while still getting the brand benefits. Overall, a good brand partnership should feel like gaining a knowledgeable partner: you’ll follow the brand’s playbook and standards, which may require some changes to how you operate, but in exchange you receive greater marketing power, support, and guest confidence. It’s important to choose a model that matches your comfort level – franchise if you value independence and local control, or management contract if you prefer to hand over operations to professionals. Either way, make sure the balance of control vs. support is something you are comfortable with before you commit.

A: The process of partnering with a hotel brand involves several steps and typically spans a number of months. First, you’ll initiate discussions with the brand (or through a consultant) and share information about your property and market. The brand will conduct an evaluation or feasibility study to decide if your hotel fits their criteria and to identify the appropriate brand from their portfolio. If there is mutual interest, the next step is usually signing a preliminary agreement like a Letter of Intent (LOI) or memorandum of understanding – this outlines key terms while detailed due diligence happens. Then comes negotiating the formal franchise or management contract, which will define all the terms (fees, length, responsibilities, territory, etc.). Keep in mind these agreements are long-term commitments – a franchise contract in the hotel industry is often ~5–15 years (sometimes longer), and a management contract may run 15–20+ years initial term (with options to renew). Once the contract is signed, there may be a period of property improvement to meet the brand’s standards (for an existing hotel, this is called a Product Improvement Plan or PIP). You might need to make renovations or upgrades (for example, brand-standard bedding, signage, lobby decor, IT systems, safety measures, etc.). In parallel, the brand will start integrating your hotel into their systems – setting up the reservation connectivity, training your staff in the brand’s service standards, and preparing marketing materials for the rebranding. After all preparations are complete, the hotel officially “goes live” under the new brand – often marked by a grand opening or rebranding launch. From the initial contact to the hotel’s opening as a branded property, the timeline can vary based on how ready your hotel is and how fast negotiations/renovations go.

In general, converting an existing independent hotel to a branded one is much faster than building a new hotel from scratch. For example, in India a new-build hotel project can take anywhere from 3 to 6 years due to approvals and construction, whereas rebranding an existing hotel can often be completed in under a year . Some brands have streamlined the conversion process so much that a straightforward hotel conversion may finish in just a few months (one global chain noted that about 60% of their new franchise additions were up and running within 90 days) . Of course, these fast turnarounds assume the property only needs minor tweaks. In practice, you should anticipate roughly 6–12 monthsfor the whole tie-up process in a typical case – that covers finding the right brand, signing agreements, completing any required upgrades, and training staff before launch. Projects that involve significant renovation or delays (e.g. getting licenses for added facilities) could extend beyond a year. The key is that the process is step-by-step: evaluation → agreement → upgrade → opening. With good planning, an independent hotel can smoothly transition to a branded hotel within a year’s time, allowing you to start enjoying the benefits of the brand relatively quickly .

1. Feasibility & Concept Validation

Most owners don’t know which concept (luxury, upscale, midscale, boutique, budget) will actually work in their market. Spectra runs a detailed feasibility study covering:

• Location potential and demand drivers (tourism, corporate, weddings, MICE, leisure).

• Competitive benchmarking (occupancy, ADR, brand presence).

• ROI projections – ensuring the brand you sign with will maximize profitability.

This helps owners avoid locking into the wrong brand category or overspending on capex.

2. Operator & Brand Matchmaking

With 30+ years in the industry and 200+ projects across India, Spectra has direct relationships with all major brands – Marriott, Hilton, Hyatt, Radisson, IHG, Taj, ITC, Lemon Tree, Sarovar, Wyndham, and more.

• We shortlist suitable brands based on your property profile (key count, location, service mix).

• We explain whether you qualify for a franchise, management, or manchise agreement, including what’s realistic (e.g. soft brands vs flagship brands).

• We align your hotel’s positioning with the right brand’s portfolio.

Instead of owners cold-calling 5–6 brand teams, we bring the right brand to the table faster.

3. Negotiating the Best Terms

Owners often sign contracts without fully understanding fee structures. Spectra protects you by:

• Breaking down all fees: initial technical services fee, royalty fee (% of revenue), marketing & loyalty fee, reservation fee, and management base + incentive fees (if applicable).

• Comparing proposals across brands so you see true net ROI after fees.

• Negotiating key clauses like territory protection, exit terms, PIP (renovation commitments), and flexibility on franchise vs. management.

This ensures you don’t overpay in fees or get stuck with an unfavorable long-term contract.

4. Project Support During Pre-Opening

For new builds or conversions, brands expect hotels to meet design and service standards. Spectra supports by:

• Coordinating with brand’s technical team on design & layout.

• Assisting with pre-opening timelines, recruitment, and training.

• Ensuring compliance with brand standards without unnecessary overspend.

Owners save time and money by avoiding over-design or costly mistakes.

5. Post-Opening & Long-Term Advisory as Asset Managers

Spectra stays involved beyond the signing ceremony:

• Monitoring brand performance (occupancy, ADR, GOP).

• Advising on marketing, distribution, and positioning.

• Helping owners hold brands accountable for the promised ROI.

Owners don’t just get into a tie-up – they get ongoing support to maximize performance.

In simple words: Spectra helps you choose the right brand, sign the right deal, and run your hotel profitably under that brand.