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Ascend Hotel Collection Franchise ProfileLodging & Leisure > Lodging |
Overview of Ascend Hotel Collection Franchise
The Ascend Hotel Collection is a unique franchise opportunity within the hospitality sector, catering to travelers seeking a distinctive experience. With an initial investment ranging from $179,950 to $11,799,075, potential franchisees can tap into a growing market of boutique hotels. The franchise fee is set at $45,000, with ongoing royalty and marketing fees of 5% and 3%, respectively. This collection allows franchisees to benefit from a recognized brand while maintaining the individuality of their properties.
Financial Requirements for Ascend Hotel Collection
Aspiring franchisees should be prepared for a cash requirement between $135,000 and $295,000, along with a net worth requirement of $500,000 to $1,000,000. These financial benchmarks ensure that franchisees have the necessary resources to support their operations and growth. The average annual revenue per unit stands at $87,440, with a median of $91,590, indicating a promising revenue potential within the franchise system.
Performance Metrics of Ascend Hotel Collection
The Ascend Hotel Collection has demonstrated consistent growth, with 176 franchised units in 2020, increasing to 181 in 2021, and slightly declining to 177 in 2022. The average annual revenue for a unit is approximately $1,401,949, with an EBITDA margin of 18%. Notably, the breakeven time for new units is estimated at 18 months, while the investment payback period is around 36 months, making it a potentially lucrative investment for franchisees.
Operational Insights for Ascend Hotel Collection Franchisees
Franchisees can expect a range of operating expenses, with total estimated costs varying from $179,950 to $2,214,295 annually. Key expenses include advertising, high-speed internet access, insurance, and property improvements. Understanding these costs is crucial for effective financial management. The franchise provides ongoing support and training, equipping owners with the tools needed to navigate operational challenges and optimize profitability in the competitive hospitality landscape.
Ascend Hotel Collection Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Ascend Hotel Collection Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 176 | 181 | 177 |
| Net Change YoY | 5 | -4 | |
| Franchised Units | 176 | 181 | 177 |
| Net Change YoY | 5 | -4 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Ascend Hotel Collection offers a flexible investment range, with initial costs varying from $179,950 to $11,799,075. The initial franchise fee is set at $45,000, and franchisees are required to maintain a royalty fee of 5% on gross sales and a marketing fee of 3%. The cash required to start ranges from $135,000 to $295,000, making it accessible for a variety of investors.
Financial Performance
On average, each unit in the Ascend Hotel Collection generates annual revenue of approximately $87,440, with a median revenue of $91,590. Revenue can vary significantly, with the lowest reported annual revenue at $23,720 and the highest at $261,800. The breakeven period is estimated at 18 months, allowing franchisees to recoup their investments within about three years.
Franchise Growth
The Ascend Hotel Collection has demonstrated steady growth in its franchised units, increasing from 176 in 2020 to 181 in 2021, before slightly declining to 177 in 2022. This consistent presence indicates a stable market demand and a solid foundation for potential franchisees looking to join a growing brand.
Operating Expenses
Franchisees should be prepared for various operating expenses, which can range widely. Total estimated operating expenses are between $179,950 and $2,214,295 annually. Key expenses include advertising (ranging from $2,500 to $40,000), high-speed internet access ($10,000 to $20,000), and property improvements ($78,000 to $1,801,000), among others.
Support and Training
The Ascend Hotel Collection provides comprehensive support and training for its franchisees. This includes assistance with site selection, operational training, marketing strategies, and ongoing operational support. The goal is to equip franchisees with the tools and knowledge necessary to successfully manage their hotels and maximize profitability.
Market Position
Positioned as a unique offering within the hospitality sector, the Ascend Hotel Collection caters to travelers seeking distinctive and memorable experiences. The brand emphasizes individuality and charm, setting itself apart from conventional hotel chains. This focus on unique accommodations appeals to a growing segment of travelers looking for personalized stays, enhancing the brand's market attractiveness.
Frequently Asked Questions
The initial investment for an Ascend Hotel Collection franchise ranges from $179,950 to $11,799,075, depending on various factors such as location and property size.