In the process, two groups of basic growth and having basic development international hotel operators are used. Adam mentions that the two groups should not differ from the usual for transnational corporations. These two groups are:
- contractual arrangements, that provide control of business operations and investments in other countries, among which are franchising and management contract. Then these businesses lease the agreement and other forms…
- direct investments, in the form of construction of new facilities (Greenfield investment), joint ventures with domestic partners, as well as through mergers and acquisitions and real estate investment funds (REIT)…
Combinations of some form within the group, and in particular between the above groups are very common, especially in large hotel operators, but for other companies. In this context, consortiums can also be spoken, i.e. voluntary chains which establish an order to grow and develop independent (and usually smaller) hotel companies. They represent the strategic alliances of the associated hotels, and as such, they appear in other forms of associations and partnerships. Throughout his career, Adam has seen most of these cases. He says that the essence lays in the fact that cooperation in alliances can be organized on the basis of a contractor through certain investments, through one of the aforementioned ways of growth and development, or their combination. Adam explains that REITs are also characterized by a combined of these forms in which as a rule, investments in hotel facilities are linked to the inclusion of these facilities in one of the known franchise systems or a management contract that ensures efficiency in the business.
Read the entire article at https://www.biggerpockets.com/blogs/9806/66615-ways-to-grow-and-develop-international-hotel-chains-part-1