Hotel Franchising Doubles in Southeast Asia
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A new report says that hotel franchising is rapidly expanding in Southeast Asia, providing local hotel owners significant growth opportunities despite market challenges.
JLL issued a report on how franchising is gaining traction with hoteliers in Southeast Asia. They said this offers local and regional hotel owners an avenue for growth and resilience in the wake of the pandemic. JLL said that in Southeast Asia, the number of hotels operating under franchise agreements has doubled over the past decade, rising from 3% of the market to 6% in 2024. While this has already become a mainstay in the U.S. and Europe, the model remains in its infancy in Southeast Asia, hampered by the region’s fragmented hotel market, made up of numerous small local owners, a lack of options for third-party operators as well as regulatory and legal barriers. JLL believes Thailand is poised to embrace hotel franchising. They are confident that hotel owners across Southeast Asia will consider this opportunity as the markets evolve. Before doing that, there are some obstacles to overcome and an education process that has to be undertaken.
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