This excerpt taken from the WYN 10-K filed Feb 27, 2009.
Scale Segment Forecast 2009
in Avg. Room
Room Rate (ADR)
Avg. Room Supply
Greater than $210
$125 to $210
$95 to $125
Midscale with food-and-beverage
Less than $95
Midscale without Food-and-beverage
Greater than $65
Less than $65
Travel Research (Estimated Average Daily Room Rate (ADR));
PricewaterhouseCoopers (Operating Statistics). 2009 data is as
of January 2009.
Typically, companies in the lodging industry operate under one
or more of the following three business models:
Franchise. Under the franchise model, a company typically
grants the use of a brand name to owners of hotels that the
company neither owns nor manages in exchange for royalty fees
that are typically equal to a percentage of room sales. Owners
of independent hotels increasingly have been affiliating their
hotels with national lodging franchise brands as a means to
remain competitive. In 2008, the share of hotel rooms in the
United States affiliated with a national lodging franchise brand
was approximately 68%.
Management. Under the management model, a company
provides hotel management services to lodging properties that it
lodging properties owned by a third party in exchange for
management fees, which may include incentive fees based on the
financial performance of the properties.
Ownership. Under the ownership model, a company owns
properties and therefore benefits financially from hotel
revenues and any appreciation in the value of the properties.
Bet you've never seen portfolio analytics like these.