The decision to enter the hotel industry through franchising opens a world of opportunities, yet it’s accompanied by an array of financial commitments that demand careful consideration. The allure of leveraging a recognized brand, along with the comprehensive operational support a franchise offers, large loyalty programs, and brand recognition is undeniably attractive to aspiring hoteliers. Yet, the true cost of a hotel franchise extends far beyond the initial investment. It weaves through the daily operations and strategic decisions that shape the path to profitability.
The journey into hotel franchising starts with the initial franchise fee, a pivotal investment that unlocks the doors to the franchisor’s brand and resources. This fee is not merely a ticket to use the brand name but a gateway to a suite of support services, including training, marketing, and proprietary technology, essential for setting your venture on the right course. The cost varies significantly across different brands, reflecting the range of prestige and the level of support provided. With fees ranging from $10,000 to over $100,000, this investment underscores the critical need for diligent financial planning and analysis.
This fee represents the franchisor’s investment in you, covering the cost of integrating a new partner into their network. It’s an acknowledgment of the mutual commitment to uphold the brand’s standards and achieve operational success. For franchisees, this initial cost is a significant portion of their investment, laying the groundwork for leveraging the brand’s market presence and operational expertise.
The financial journey doesn’t end with the initial fee. Hotel franchise ownership involves ongoing contributions that are vital to sustaining the franchise relationship and maintaining brand standards. These include royalties, marketing fees, connectivity fees, loyalty redemption fees, guest complaint fees and a host of other fees that are disclosed in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Additionally there are periodic renovation requirements, painting a comprehensive picture of the ongoing cost landscape of franchised hotel operation.
Armed with a thorough understanding of these financial obligations, entrepreneurs can navigate the franchising world with greater confidence. The essence of making an informed decision lies in weighing these costs against the benefits of affiliation with a renowned brand, which offers a competitive market presence and a tried-and-tested operational blueprint for success.
Running a hotel franchise requires a keen understanding of operational costs, which are pivotal for maintaining profitability and adhering to franchisor standards. These expenses encompass a wide range of activities crucial to the daily management of the hotel, including staffing, maintenance, utilities, and more. By delving into these costs, we can uncover strategies for effective management and optimization.
The backbone of any hotel’s success lies in its staff. From front desk representatives to housekeeping, every team member plays a vital role in shaping the guest experience. Thus, staffing costs extend beyond salaries to include training, benefits, and retention efforts. Investing in comprehensive training programs not only elevates service quality but also enhances guest satisfaction. Competitive benefits and a positive work environment are essential for minimizing turnover, reducing the costs and disruptions associated with frequent hiring.
The condition of a hotel directly influences guest perceptions and its competitive edge. Routine maintenance, emergency repairs, and utilities are ongoing expenses critical for operational efficiency and guest comfort. Periodic renovations, driven by both wear and tear and franchisor standards, are significant financial undertakings but essential for maintaining brand integrity.
Local marketing is crucial for enhancing a hotel’s visibility and attracting guests. Tailored marketing strategies can leverage unique local opportunities, complementing the franchisor’s overarching marketing initiatives. Revolution Ordering emphasizes the importance of effective local marketing in driving revenue and supporting brand growth, showcasing the potential impact of well-executed campaigns.
The sophisticated realm of revenue management is central to the success of hotel franchises, embodying a series of strategic maneuvers designed to maximize revenue and profitability. This multifaceted approach integrates dynamic pricing, meticulous inventory control, and strategic distribution channel optimization. By closely examining the nuances of these strategies, we can uncover the mechanisms that drive financial success in the competitive hotel industry.
At the heart of revenue management lies the principle of dynamic pricing, a strategy that empowers hoteliers to adjust room rates in real-time based on fluctuating market demand. This agility allows hotels to capture maximum value across varying market conditions, ensuring that occupancy rates and revenue per available room (RevPAR) are optimized. The complexity of strategic pricing involves a deep dive into market analytics, including studying competitor pricing, understanding historical booking patterns, and forecasting future demand trends. By leveraging advanced analytics and pricing tools, hoteliers can sculpt pricing strategies that respond adeptly to market signals, enhancing their competitive edge and boosting profitability. The ongoing challenge is to balance competitive pricing with market demand, ensuring that rates are enticing to potential guests while maximizing revenue for the hotel.
Effective inventory management transcends mere room allocation; it’s about aligning the hotel’s supply with market demand in the most profitable manner possible. This strategic alignment requires a granular analysis of booking trends, segment-specific demand, and the optimization of distribution channels to ensure that rooms are sold at the right time, at the right rate, and to the right customer. Sophisticated inventory management systems play a pivotal role here, offering real-time insights and analytics that enable hoteliers to make informed decisions. These systems help in identifying peak demand periods, allowing hotels to prioritize high-value bookings and adjust room availability to maximize revenue. Moreover, strategic partnerships with online travel agents (OTAs) and direct booking channels need to be carefully managed to balance visibility with cost, ensuring that the hotel’s inventory is marketed effectively without eroding profit margins through high commission fees.
The advent of technology in the hotel industry has revolutionized how revenue management is conducted. From comprehensive property management systems (PMS) that enhance operational efficiency to sophisticated revenue management systems (RMS) that automate complex pricing decisions, technology is at the forefront of maximizing profitability. These technological solutions offer powerful analytics, predictive modeling, and automated decision-making capabilities, allowing hoteliers to navigate the complexities of the market with greater precision. By investing in technology that optimizes every facet of hotel operation—from guest booking experiences to back-end management processes—hoteliers can significantly reduce operational costs, improve guest satisfaction, and drive higher revenue and profits.
In the competitive landscape of the hotel industry, cultivating guest loyalty is a cornerstone of sustainable revenue growth. Loyal guests not only provide a reliable revenue stream through repeat business but also become brand ambassadors who amplify the hotel’s reputation through word-of-mouth. Developing a loyalty program that rewards repeat guests with personalized offers, exclusive benefits, and tailored experiences can foster a deep sense of brand loyalty. Beyond rewards, delivering consistently exceptional service, creating memorable experiences, and engaging with guests through personalized communication are pivotal in building lasting relationships. By prioritizing guest satisfaction and loyalty, hotels can secure a loyal customer base that supports revenue stability and growth, even in fluctuating market conditions.
Embarking on the journey of running a franchised hotel combines the excitement of brand partnership with the rigor of operational excellence. As we’ve explored the true cost of franchising, from initial investments to ongoing operational expenses, and delved into strategies for revenue management and profit maximization, it’s clear that success in the hotel industry is a multifaceted endeavor.
The commitment to understanding and managing the financial aspects of hotel franchising lays the foundation for sustainable growth. By embracing strategic pricing, effective inventory management, leveraging technology, and fostering guest loyalty, hoteliers can navigate the complexities of the market with confidence. These strategies are not just about maximizing revenue; they’re about building a brand that guests trust and return to, time and again.
Ready to explore the opportunities and navigate the challenges of hotel franchising? NewGen Advisory is your dedicated partner in this journey. With our deep industry expertise and personalized advisory services, we’re here to help you make informed decisions, maximize your investment potential, and achieve sustainable success. Whether you’re considering buying, selling, or investing in a hotel franchise, our team is equipped to provide the insights and support you need. Contact us today for more information.
Jourdyn leads the strategic marketing initiatives for NewGen Advisory, overseeing brand development, market positioning, communications, and business growth efforts across the firm.
With more than a decade of experience in marketing and business development, Jourdyn specializes in building brands, creating demand-generation strategies, developing thought leadership programs, and executing integrated marketing campaigns that drive measurable business results. Her expertise spans digital marketing, public relations, content strategy, events, social media, lead generation, and corporate communications.
At NewGen, Jourdyn is responsible for shaping and executing the firm’s marketing strategy, ensuring consistent brand visibility across all channels while supporting advisors, clients, and strategic initiatives nationwide. She works closely with leadership to develop campaigns, elevate industry presence, strengthen client engagement, and position NewGen as a trusted advisor within the hospitality investment sector.
Jourdyn holds a Bachelor of Arts in Mass Communication and Media Studies from Arizona State University and a Master of Business Administration (MBA) with an emphasis in Marketing from Grand Canyon University.
Most mornings you’ll find Jourdyn in the gym before sunrise and spending time with her husband and children.
Allysia Howerton joined NewGen Advisory in 2026 as a Pipeline & Transaction Assistant, relocating from St. Louis, MO to Arizona to take on the role. She brings a background spanning property management, client services, sales, and administrative leadership, with a track record of managing complex workflows and keeping transactions moving efficiently from inception to close.
Known for her organization, attention to detail, and relationship-driven approach, Allysia supports transaction management, pipeline coordination, and day-to-day brokerage operations — and is passionate about growing her career within the hospitality real estate industry.
Outside of work, she enjoys discovering new coffee shops and restaurants, traveling to experience new cultures, and spending time with her dogs.
2 years
Josie Numedahl joined NewGen Advisory in July 2024 as a Real Estate Assistant (REA). Originally from Iowa, she relocated to Arizona to pursue her education, graduating from Grand Canyon University in 2022 with a Bachelor’s degree in Marketing and Advertising.
Josie began her professional career as a recruiter in the finance and accounting sector, and brings that client-facing, detail-oriented background to her work at NewGen.
Outside of work, she enjoys reading, hiking, exploring local coffee shops, and spending time with friends.
X years
Anthony is the Staff Accountant for NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC, working directly under CFO Michael Lepore to handle day-to-day accounting functions across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Anthony completed coursework at Paradise Valley Community College before co-founding a family business that produced custom-wrapped die-cast model cars for corporate clients — handling vehicle customization, display stands, and branded packaging. Serving as Director of Operations, he gained hands-on experience in management, production workflows, and running a business from the ground up.
Outside of work, Anthony is a lifelong ice hockey player with a passion for motorsports — particularly motocross and classic cars. Among his favorites: the 1963 C2 Corvette Sting Ray, the 1965 Shelby Cobra S/C, and the 1971 Plymouth Hemi ‘Cuda. He hopes to one day own and operate a bookkeeping firm serving small businesses.
X years
Nick serves as Director of Operations for NewGen Worldwide and NewGen Advisory, bringing a detail-oriented, forward-thinking approach to supporting the company’s continued growth. A Minneapolis native, Nick studied at Denison University and the University of Minnesota before making his way to Arizona, where he now lives in Mesa.
He spent a decade in the hospitality industry as a server, bartender, and restaurant manager — hands-on experience that gave him a strong operational foundation and a natural fit within NewGen’s hospitality-focused business.
Outside of work, Nick is an avid writer with a passion for art, photography, and travel, and enjoys documenting his experiences through the lens.
X years
Nycole serves as Chief of Staff at NewGen Advisory, where she trains and manages the Real Estate Assistant (REA) team. She works closely with REAs to ensure agents receive consistent, high-quality support throughout every stage of a deal — from contract to close.
Alongside the Office Manager, Nycole leads onboarding for new agents, REAs, and team members across NewGen Worldwide’s subsidiaries, and has developed a training library to streamline the process for incoming staff. She is also actively involved in evaluating and implementing new platforms to improve agent and REA workflows, while providing leadership with the data needed to monitor KPIs and track revenue goals.
Her background in franchise operations management — spanning startups to scaling franchises — makes her a versatile and valuable member of the NewGen team.
20+ years
Michael is the Chief Financial Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. Michael and his team oversee day-to-day accounting, budgeting, forecasting, and financial modeling across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Michael built over 20 years of experience in accounting, tax, and operations management serving small to mid-sized businesses. He holds active CPA licenses in both New York and Arizona. His career spans public accounting — including a role as Audit Manager at PricewaterhouseCoopers — as well as private accounting and business ownership, giving him a broad, hands-on command of accounting and management functions. That dual perspective allows him to bring both tax strategy and business strategy to bear when evaluating financial decisions. He is a member of the American Institute of Certified Public Accountants (AICPA) and the Arizona Society of Certified Public Accountants (ASCPA).
A proud Italian-American, Michael lives in Scottsdale with his wife, Patty, and their three children, Alyssa, Anthony, and Joey. Outside of work, he coaches ice hockey and has a passion for cooking Italian food.
X years
Kyle is a co-founder, Principal, and Chief Executive Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment firm focused on creative, flexible solutions. Beyond his broad responsibilities as CEO, Kyle’s primary focus is leading Green Card Fund, developing and implementing capital solutions domestically and internationally, and identifying attractive investment opportunities.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on business partners Girish Patel and Dan Rama’s lifetime experience in the industry. Kyle’s financial acumen and creative approach to structuring deals help NewGen Advisory clients identify and secure profitable opportunities.
Kyle earned a B.A. in Interdisciplinary Studies from Arizona State University with a focus in Business and Urban Planning. He has long been involved with the Greater Phoenix Economic Council’s (GPEC) International Leadership Council, and in 2016 was elected to the Board of Directors of Invest in the USA (IIUSA), the national EB-5 trade association, where he actively contributes to legislative reform efforts and the permanent reauthorization of the EB-5 program.
Kyle splits his time between company offices in Phoenix, AZ and Washington, D.C. Outside of work, he is an avid reader, global traveler, and snowboarder — and after logging over a million miles as a passenger, he has recently taken to the cockpit, learning to fly himself.
20+ years
Girish Patel is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions across hospitality and healthcare. Among his core responsibilities are leading strategic initiatives, overseeing financial management, and driving real estate investment acquisitions.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, grounded in Girish’s and business partner Dan Rama’s lifetime experience in the industry. Having grown up in his family’s hotel business as an immigrant, Girish developed a bottom-up understanding of hospitality — mastering operations before becoming an investor, lender, and consultant. That ground-level perspective, tested across multiple economic cycles, underpins his 20+ years as a successful business owner and brings a distinctive depth of insight to NGA’s clients and investors.
Committed to continuous learning and giving back, Girish established the RC Patel Memorial Scholarship for students pursuing careers in real estate investment. He also serves on the Board of Directors of Global Ties Arizona, an organization that strengthens international relationships by making exchange programs more impactful.
X years
Dan is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. His primary role is leading NewGen Advisory and serving as its Designated Broker in Arizona.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on Dan’s and business partner Girish Patel’s lifetime experience in the industry. Throughout his career, Dan has been involved in the disposition of over $600 million in hospitality assets, advising clients on acquisitions, mergers, and divestitures across the United States.
Dan began his career as a hotel operator and owner in 1994 following his studies at the University of Arizona, going on to build a portfolio as a franchisee of Red Brick Pizza, Holiday Inn, Ramada Inn, and Comfort Suites. He holds General Manager Certifications from Holiday Inn, Motel 6, and Days Inn, and is a Certified Hotel Owner (CHO) with a Certification for Hotel Industry Analytics (CHIA).
Beyond his company responsibilities, Dan is an active industry voice. He serves as an Ambassador with the Asian American Hotel Owners Association (AAHOA) — the largest hospitality owners association in the U.S. — and previously served as its Southwest Regional Director. He also sits on the Board of Directors of the Arizona Lodging and Tourism Association (AZLTA).
Dan lives in Gilbert, AZ with his wife, Chetna, their son Suraj, and their daughter Sonya. Outside of work, he enjoys golf and cheering on the Denver Broncos.
15+ years
Suraj is the Chief Legal Officer of NewGen Worldwide, LLC and a member of its senior leadership team, where he contributes to the operational management and strategic planning of the company and its subsidiaries — including Green Card Fund and NewGen Advisory. NewGen Worldwide is a diversified firm engaged in real estate investments, creative capital solutions, and advisory services for the entrepreneurial investor.
Suraj first served as outside counsel for Green Card Fund and NewGen Worldwide from 2008 to 2014 before joining the organization as Chief Legal Officer. In this role, he leads the company’s legal, regulatory, and corporate governance functions, with responsibility spanning real estate, risk management, contractual relations, and investment strategies. He also oversees the business administration of NewGen Advisory, a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Suraj was Managing Partner of Bhakta & Associates, PLLC, a full-service business law firm where he represented a broad range of clients across acquisitions and sales, corporate structuring, contracts, franchise law, development and construction, and equity and debt financing.
A native of Ohio, Suraj graduated from The Ohio State University in 1999 with a B.S. in Business Administration and earned his J.D. from Case Western Reserve University in 2002. He resides in Peoria, AZ with his wife, Neena, and their two sons, Shiv and Soham.
