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Hospitality Branding$
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Chekitan S. Dev

Print publication date: 2012

Print ISBN-13: 9780801452031

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9780801452031.001.0001

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Branding beyond Borders

Branding beyond Borders

Chapter:
(p.51) Chapter Five Branding beyond Borders
Source:
Hospitality Branding
Author(s):

Chekitan S. Dev

Publisher:
Cornell University Press
DOI:10.7591/cornell/9780801452031.003.0006

Hotel brands commonly enter international markets through contractual arrangements such as franchises and management contracts. This chapter examines the factors that brands consider in choosing between franchising or management contracts. Four factors should influence a hotel firm's choice between franchising and management, yielding the following guidelines: (1) the presence of irreproducible resources and capabilities favors management contracts over franchising; (2) the availability of management resources in a host market favors franchising arrangements over management contracts; (3) the availability of qualified local investment partners in a host market favors management contracts over franchising; and (4) a highly developed business environment favors franchising arrangements over management contracts.

Keywords:   hotel brand expansion, foreign markets, franchising, management contracting, management resources, irreproducible resources, local investment partners, business environment

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