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Top 5 reasons
why hoteliers are de-flagging
their properties
In a competitive world, there is no scope
for carrying slack, be it under performing
properties or assets. Hotels are not hesitant
anymore about cutting the cord from
what is holding them back. This practice is
termed as de-flagging.
What is de-flagging for hotels?
• De-flagging is the practice of hotel operators becoming
independent of their brand franchisers.
• It is a situation wherein the hotel loses the backing of its big
brand franchiser.
• Most of the hotel owners look to de-flag hotels because they
do not get a proper Return on Investment.
• Property owner starts facing decreased cash flow and
increased capital expenses.
Most common reasons for de-flagging hotels
The economic slowdown
Hotel groups may not be able to foot the bill
for the operational expenditure that they
once did. It is a situation where financial
dynamics are drastically altered.
1
Making the move to a more creative outlet
Properties need to adhere to specific
standards when they operate under the
umbrella of a major brand. Those properties
that do not want to be held back by stricter
set of rules defined by their (franchisor)
brand, may want to make their own.
2
Falling numbers
Many at times, property management may
realize that they can do better on their own,
without depending upon big brand labels.
3
Going boutique
The boutique hotel market is fast
evolving segment that is attractive
and lucrative. Travellers seeking a
new experience are willing to give
independent hotels a chance.
Hence many properties that has the
fund to make the switch, are getting
the boutique makeover.
4
Brand makeover
When the property is not willing to be
associated with a particular brand or
name-tag, they can de-flag themselves
and transform into a brand new
independent property.
5
Email us at sales@hotelogix.com
US Phone : + 1 415 528 6633
UK Phone : + 44 20 3318 6062
APAC Phone : + 65 31638333
Centralize Optimize
Simplify
Useful links:
A guide to Revenue Management for independent hotels
Simple Ways To Enhance The Guest Experience
Point of Sale (PoS) outlets
Online channel integrations
Property Management System
on the Cloud
15-Day FREE TRIAL

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Top 5 Reasons Why Hoteliers Are De-flagging Their Properties.

  • 1. Top 5 reasons why hoteliers are de-flagging their properties
  • 2. In a competitive world, there is no scope for carrying slack, be it under performing properties or assets. Hotels are not hesitant anymore about cutting the cord from what is holding them back. This practice is termed as de-flagging.
  • 3. What is de-flagging for hotels? • De-flagging is the practice of hotel operators becoming independent of their brand franchisers. • It is a situation wherein the hotel loses the backing of its big brand franchiser. • Most of the hotel owners look to de-flag hotels because they do not get a proper Return on Investment. • Property owner starts facing decreased cash flow and increased capital expenses.
  • 4. Most common reasons for de-flagging hotels
  • 5. The economic slowdown Hotel groups may not be able to foot the bill for the operational expenditure that they once did. It is a situation where financial dynamics are drastically altered. 1
  • 6. Making the move to a more creative outlet Properties need to adhere to specific standards when they operate under the umbrella of a major brand. Those properties that do not want to be held back by stricter set of rules defined by their (franchisor) brand, may want to make their own. 2
  • 7. Falling numbers Many at times, property management may realize that they can do better on their own, without depending upon big brand labels. 3
  • 8. Going boutique The boutique hotel market is fast evolving segment that is attractive and lucrative. Travellers seeking a new experience are willing to give independent hotels a chance. Hence many properties that has the fund to make the switch, are getting the boutique makeover. 4
  • 9. Brand makeover When the property is not willing to be associated with a particular brand or name-tag, they can de-flag themselves and transform into a brand new independent property. 5
  • 10. Email us at sales@hotelogix.com US Phone : + 1 415 528 6633 UK Phone : + 44 20 3318 6062 APAC Phone : + 65 31638333 Centralize Optimize Simplify Useful links: A guide to Revenue Management for independent hotels Simple Ways To Enhance The Guest Experience Point of Sale (PoS) outlets Online channel integrations Property Management System on the Cloud 15-Day FREE TRIAL