Skip to content

Search

Latest Stories

CEO says hotel franchisees are dissatisfied with brands

The COVID-19 pandemic has highlighted existing tensions, Advantage Hotels founder said

THE ONGOING COVID-19 pandemic has revealed growing numbers of franchisees dissatisfied with major hotel brands, according to the founders of Advantage Hotels. Patrick Mullinix, the company’s president and CEO, said the franchisee rebellion indicates larger companies are not supporting their hotel owners.

Mullinix, who formed the Austin, Texas-based company last year after acquiring Vista and Select Inn brands from Advantis Hospitality Alliance, said franchisees are tired of the lack of support they receive from the brands. The current economic downturn highlighted that lack of support, he said.


“Once the COVID pandemic hit the travel sector, it shut down the reservation system for every brand in U.S. It unveiled a realization, that brands didn’t provide much support,” he said. “The writing has been on the wall for a number of years. Now, dissatisfied franchise owners are now waking up to the real truth of how little their brands actually contribute to the success of their business compared to the high cost in which they pay to them monthly.”

An online petition for change by some Choice Hotels International’s franchisees is one example of the growing dissatisfaction, Mullinix said. Another group of Choice franchisees recently sued the company alleging, among other things, that the company has a racial bias against Indian American owners.

Mullinix said Advantage Hotels offers short-term franchise agreements with 12-month renewals and low transaction fees. He said the model goes “back to the basics” and “acts more like a brand membership.

“I believe during the recovery of the travel industry, we’re going to see hundreds, if not possibly thousands, of hotel owners making a change in their brand to regain their lost business,” he said. “They will be making the change not only as a result of their dissatisfaction, but more importantly, their need for survival.”

Ramesh Gokal was president and COO of Advantis, based in Murfreesboro, Tennessee, before its closing. Advantage Hotel’s advisory board includes former AAHOA Chairmen Ramesh Surati, Dhansukh “Dan” Patel and Mukesh Mowji.

More for you

CBRE: US Hotel RevPAR to Grow 1.3 Percent in 2025

CBRE: RevPAR to grow 1.3 percent in 2025

U.S. HOTEL REVPAR is expected to grow 1.3 percent in 2025, supported by urban markets from group and business travel and increased demand for drive-to and regional leisure destinations, according to CBRE. Occupancy is forecast to rise 14 basis points and ADR 1.2 percent year-over-year.

This represents slower growth than CBRE’s February forecast, which projected 2 percent RevPAR growth based on a 21-basis-point increase in occupancy and a 1.6 percent rise in ADR, the commercial real estate and investment firm said.

Keep ReadingShow less
Palette Hotels to Transform DoubleTree by Hilton in Washington, PA

Palette to manage Washington, PA, DoubleTree

Palette’s Expertise in Hospitality Management

SUNRISE GOLD HOSPITALITY recently selected Palette Hotels to manage its 140-room DoubleTree by Hilton Washington Meadow Lands Casino Area in Washington, Pennsylvania. Palette will oversee renovations, including Hilton Connected Rooms technology upgrades, new signage, landscaping, building systems and updates to the lobby, guestrooms, bathrooms, meeting spaces, restaurant, bar and lounge.

Sunrise Gold Hospitality is led by owner Ramesh Pandya, and Palette Hotels by Founder and CEO Richard Lou.

Keep ReadingShow less