Brand Affiliation

Elevate your position in the competition by aligning with the right brand.

CONVERSIONS

Brand affiliation has the transformative power to turn underperforming hotels into fully successful and thriving establishments.

NEW CONSTRUCTIONS

Recommending the top architects in the hotel segment, project guidance (Size | Design | Facilities), along with expert advice on brand affiliation. Receive brand advisory and technical supervision during construction or renovation phases, ensuring the development of a superior product. Access the brand's expertise and industry insights for continuous improvement.

Conversion of an independent hotel to branded hotel ecosystem.

 Brand affiliation is a critical and long-term decision. Choosing a hotel brand and business model (Management | Franchise | Revenue Sharing) is a complex process for new investors and asset owners, considering factors such as the extent of management, brand fees (direct & indirect), fiscal impact (increased costs), duration of definitive agreements, exit and default clauses, brand visibility, coverage, corporate support, and brand flexibility. Hotels, being high-value assets (HVA), require meticulous protection and precision management to attain investment goals.

Aura Advisory primary objective is to safeguard the interests of hotel owners, investors, and developers by offering expert strategic advice, fostering informed decision-making, and ensuring long-term success in the dynamic hotel business landscape. We aim to identify the most suitable brand fit for our client, ensuring that their business and financial interests are diligently represented and safeguarded throughout the entire identification and negotiation stages.

We have successfully advised and represented our clients in negotiations involving Commercial Term Sheets, Owners’ Charter of Rights, Technical Services Agreements, Brand Franchise Agreements, and Hotel Management Agreements. Throughout the process, we provide our inputs and recommendations, ensuring that proposed hotel contracts and management agreements align with the ownership's interests and investment objectives.

Aura Hotel Advisory assist asset owners in partnering with the right brand and securing favorable terms to:

• Maximise the business (Growth of top line/revenue)
• Optimal Performance.
• Better market positioning.
• Deciding on the type and quality of facilities needed based on property’s market orientation.
• Safeguard Owners interest.  
• Enhance asset value.

Agreements must strike a balance, enabling the brand to perform effectively while empowering owners to oversee their investments. We focus on enlightening and aligning owner expectations with brand deliverables.

Brand affiliation fees and standards incur an additional fiscal impact of 5% to 10% of hotel revenues. However, this is adequately compensated by the increased business quantum, occupancy, Average Room Rate (ARR), leading to an overall rise in profitability and long-term asset appreciation for the hotel owner. Consequently, unlocking the real estate value becomes comparatively easier when the asset is flagged as a branded asset.

AHAB assists hotel owners in adopting brand affiliation with caution.

We adeptly negotiate and secure optimal commercial terms with the right partners, ensuring the best outcomes for our clients.

Area of Protection (AOP): To prevent or minimize business cannibalization and safeguard the hotel owner's interests, it is crucial to negotiate an area of protectionclause with the brand.

The significance of brand affiliation has grown exponentially, and there are compelling reasons why it is more crucial today than ever before:

Certainly, having a well-known brand operating a hotel brings multifaceted advantages:

A strategic hotel brand tie-up has the potential to significantly amplify sales, resulting in robust reservations and heightened business performance.

WHY CHOOSE AURA AS YOUR HOTEL CONSULTANT FOR OPERATOR/BRAND SEARCH AND SELECTION?

 Adopt Brand Affiliation with caution: 

- Investment Analysis, Site Assessment & Evaluation 

- Identification of potential brands

- Explore and evaluate all potential brands (Domestic | International)

- Follow robust selection process.

- Right Brand Selection.  

- Selecting Business Model (Management | Franchise | Revenue Sharing). 

- Provide information on the potential terms and conditions.

- Provide LOI and Term Sheet from shortlisted brands.

- Area of protection (AOP), appointment of key staff & termination clauses.

- Negotiate and deliver the best commercial terms. 

- Agreement vetting & Negotiate legal points suitably.

- Brand Performance, responsibilities/role & support.

- Safeguard Hotel Owner’s rights/ interests.

- Signing up with brand of choice

With AURA Advisory services, explore and evaluate various aspects of hotel brands, including their strength, nuances, performance, market presence, coverage, sales support, reservation system, hidden costs, and flexibility. We provide a comprehensive analysis to assist you in making informed decisions about brand affiliation.

Whether clients aim to sign a new agreement or renegotiate an existing contract, we assist them in identifying the most dynamic and suitable partners in the market Our focus is on ensuring that the commercial terms align favorably with their objectives, maximizing the benefits for our clients.

Our commitment extends beyond this point; we support our clients during the pre-opening phase and navigate through initial teething problems to ensure a smooth transition and successful launch.

We strategically align the owner's vision, expectations, and requirements with the brand's offerings to maximize value from project initiation. Conducting a SWOT analysis, we ensure a comprehensive understanding to achieve the desired objectives effectively.

Benefits of Opting for a Brand Umbrella: Empowering Independent Hotels & Developers 

Opting for a brand umbrella not only provides a stamp of credibility but also opens doors to a multitude of resources and opportunities that can significantly elevate the success and profitability of independent hotels and developments.

Here's an overview of the compelling benefits:

1. Brand Recognition and Consumer Trust: Gain access to a new audience as brands with an increased footprint offer discerning travelers a wide choice of locations.

2. Standardised Quality: Ensure better service delivery and an enhanced guest experience, fostering a desire for guests to return and recommend the property. Elevate TripAdvisor scores through consistent quality standards.

3. Improves Visibility: Help potential customers to discover your property.   

4. Extensive Marketing & Distribution Network: Leverage global or pan-India sales, CRS, MICE initiatives and partnerships with travel agents, corporates, and tour operators, tap into a loyal customer base

5. Global Reach: Attract international travelers with the instant global recognition that comes with brand affiliation, crucial in a connected world.

6. Lower OTA Commissions, presence on multiple travel sites.

7. Revenue Growth: The brand's reputation can result in increased bookings, higher Average Room Rates (ARR), and overall revenue growth.

8. Cross-Marketing initiatives: Collaborate with other affiliated hotels and participate in trade fairs for mutually beneficial marketing opportunities.

9. Increase in ARR, Enhanced GOP & Healthy ROI: Experience a boost in Average Room Rates, achieve enhanced Gross Operating Profit, and ensure a healthy Return on Investment.

10. Operational Efficacy and Quality Control: Access operational guidance, training, Standard Operating Procedures (SOPs), and quality control processes that uphold brand standards. Benefit from mystery audits to continually improve service quality.

11. Loyalty Programs and Customer Retention: Implement loyalty programs to encourage repeat business and enhance customer retention.

12. Attract quality staff: The association with a reputable brand attracts skilled and motivated staff.

13. Technical Services and Expertise Access: Receive brand advisory and supervision during construction or renovation phases, ensuring the development of a superior product. Access the brand's expertise and industry insights for continuous improvement.

14. Asset appreciation: Witness the potential appreciation of your property's market value attributed to the powerful synergy of brand association. Elevated visibility and increased revenue, stemming from the brand's influence, contribute to the overall enhancement of your property's intrinsic worth over time.

We help explore & evaluate all available brands. Achieve right brand affiliation with our robust selection process.

Having cultivated strong business relations with renowned hotel management companies, both domestic and international hotel chains, we specialize in guiding properties to make informed choices for fitting brand affiliations. Our expertise considers the unique aspects of each hotel property and aligns with the specific brand guidelines, ensuring a harmonious and beneficial partnership.

Our commitment is to furnish you with expert, caring, and candid advice throughout one of the most pivotal transactions you will ever make. This is our unwavering dedication to your success.

Aura Advisory specializes in Business Development and Property Acquisition, functioning as an extension arm to Hotel Chains and Management Companies. We actively source properties across locations that align with their brand requirements and expansion plans.

AURA ADVISORY FEES:

Billed to the owner based on hotel key count:

    Up to 50 keys Hotel: INR 1.5 to 2 Lakh

    51 to 100 keys Hotel: INR 2 to 3 Lakh.

    101 to 500 keys Hotel: INR 3 to 5 Lakh.

Payment Terms: Upon signing the agreement

Our fee structure is designed with flexibility in mind. It adapts to the specific scale and complexity of your hotel project.