Hotel franchise alternative adds 21 hotels in April 2005

May 25, 2005

SPOKANE, WA-A growing number of hotel owners across the US are finding a new way to increase reservations without affiliating with big name hotel chains. Franchise alternative Magnuson Hotels of Spokane, WA announced today the addition of 75 new hotel affiliates year to date, with a record 21 new hotels in April.

New April hotel additions bring Magnuson Hotels’ affiliate base to 210 hotels with over 14,000 rooms and 4,000 employees in 40 US states and Canadian provinces. Recent additions include the Hotel Claremont-Claremont CA, Windsor Inn-Branson MO, Town & Country Motor Inn-Gorham NH and the Apple Tree Inn Motel of Spokane, WA.

Founded in February 2003, Magnuson Hotels already ranks top 50 among the 300 largest worldwide hotel companies. From 2003-2005, Magnuson Hotels’ growth in new affiliates surpassed the new franchise growth of 8 of the top 10 global hotel chains combined. Magnuson Hotels’ combined affiliate base currently represents aggregate assets in excess of $1 Billion.

By opening up low cost access to worldwide Internet and travel agent reservation systems, Magnuson Hotels offers independent hotel owners an alternative to higher cost franchise-controlled reservation systems which charge owners fees based upon a percentage of total hotel rooms sold. In contrast to franchises, Magnuson Hotels’ cost model is performance based, with fees tied directly to bookings delivered through its worldwide reservation system.

One convert to Magnuson’s system, Nashville hotel operator Kirrit Bhikha states, “We didn’t want to be subjected to the traditional high fees needed to compete with other large hotel chains; we wanted to pay a company for performance-based results.” Since Bhikha’s affiliation with Magnuson Hotels, his Nashville Alexis Inn & Suites has consistently been of the top ten performers in the Southeast US on Travelocity, one of the world’s largest online travel agencies.

“This rapid growth clearly indicates a significant hotel industry transformation is underway,” stated Thomas R. Magnuson, a Magnuson Hotels principal. “Historically, consumer hotel choices have been driven by big brand name recognition. But today, less than 25% of consumers have any brand loyalty in their choice of travel companies, they book based upon location, quality and price.” Magnuson adds further that with nearly 200 hotel brands driving an industry commoditization, hotel brands are diminishing in relevance to today’s hotel customers as well as hotel owners.

About Magnuson Hotels, the fastest growing hotel chain in history.
In only seven years, Magnuson Hotels headquartered in Spokane, WA has become the world’s largest independent hotel group, representing nearly 1500 hotels and a combined affiliate base with assets in excess of $5.5 Billion. One of the top 10 global hotel chains, Magnuson Hotels was the #1 Hotel Company of Inc. Magazine’s 2009 annual ranking of the 5,000 fastest growing privately owned U.S. companies. With a four year reservation sales growth of 595%, Magnuson Hotels is listed in the top 100 U.S. business services companies.

For more information, contact:
Magnuson Hotels