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Lodging/ Hotel Franchises
The U.S. hotel and motel industry consists of about 40,000 businesses that operate 48,000 properties with combined annual revenue over $120 billion. Large U.S. businesses include Marriott, Hilton, Carlson and Starwood.
This industry does not include casino hotels, bed-and-breakfast inns, youth hostels, housekeeping cabins and cottages and tourist homes.
Business and tourist travel drive demand. Both are affected by the strength of the economy. The profitability of individual businesses depends on efficient operations because many costs are fixed.
Large businesses have advantages in economies of scale in operations, and can easily raise capital and have strong name recognition. Small businesses such as boutique hotels can compete effectively in favorable locations and by providing specialty services.
Major industry product lines are room fees and sales of food, alcoholic drinks and merchandise. Room fees account for 70 percent of industry revenue, food for 15 percent and alcohol for 5 percent.
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