The past fifty years have seen a power shift between hotel owners and hotel brands at all levels. In the late 1970s, owners had the power and brands that didn’t own their own hotels were begging for business. Today, brands have the power, with owners begging to affiliate. One manifestation of this power shift is the presence of an 'area of protection,' also known as a 'radius clause,' in hotel management and franchise agreements. Thirty years ago, the establishment of an area of protection was more the rule than the exception. Today, it is more the exception than the rule.
Appeared first on: hotelnewsresource.com