The Urban Park Hotel Collection
Independence - On Your Own Terms
The New Hospitality Industry Membership Group Exclusively For Independent Hotel Owners
Why Hotels Fail

Hotels Fail For Many Reasons
Hotels do not fail on their own. The owner of a property is not only responsible for failures but also the franchise itself. Have you noticed that your area of protection does not always protect you? This is evident when your franchisor places one of their “sister brands” in close proximity to your property cutting into your market share. Below are a few more reasons hotels Fail:
Underestimating the difficulty of establishing a new hotel business
Hotel Owners who do not read the fine print relating to ALL the fees they have to pay each month - Then Shock sinks in.
Paying all the high franchise fees that do not give a good return on your investment
Being forced by your franchisor to use preferred vendor products and services that you can get at a lower cost elsewhere
Ownership has No practical hotel experience
The hotel doesn't have “that thing" that makes it special - No uniqueness
Limited knowledge of sales & marketing
Unprepared for off-season
They underestimate their competition
Community disconnect - No manager presence
Lack of accountability and urgency
Absentee owners, with passive onsite managers & staff
Unmotivated employees, asleep at the wheel
Ownership negating all the profits and not reinvesting in renovations when needed
Pushed out of the market of best to second-best by a new or renovated hotel
Menus that are not comparable to others nearby
Employee theft - of cash or inventory
Dye the carpet and raise the rates mentality
Consistently comping rooms rather than addressing service issues
Owner and franchise have different goals
Ownership stuck in a 15- 20 year franchise agreement - with a 5 year exit plan
Dated rooms and common areas
Safety and health issues ignored
Free Continental Breakfast - fit for a wedding reception
Franchise PIPs based on sheep mentality of "monkey see - monkey must copy"
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