What are the positives of franchising?

By Kate Jackson, Industry Reporter

Accom is an industry full of single entities, all pushing to make headway in a competitive market.

Working together can be a powerful way to advance business and create a sense of wellbeing in an autonomous world, particularly if you are new to the game and keen to tap into the knowledge of some successful veteran campaigners.

The management tiers that come with a franchise provide a support system for tackling issues that crop up daily - from OTA demands and staffi ng issues to scraps with guests.

Being part of a chain means having a network of other operators to connect with, and those connections cannot be underestimated. Talking through issues, garnering tips or just venting to someone who understands are all very human needs.

Franchises are well-oiled machines that, in many cases, have been operating accommodation in Australia for decades. They help establish standards of excellence and support their members in myriad ways - from in-house training to access to old fashioned ‘been there, done that’ advise.

Join the club

As a mum-and-dad operator, trying to get your accom noticed in a world dominated by online travel agents and an everchanging social media landscape marketing is daunting. Those choosing to join a franchise oft en do so because of the access it provides to extensive marketing and booking networks. While a franchise must align with what a property has to off er, and franchisees should always research carefully before jumping aboard, there are several models in the market which make matching a property with a franchise an easier task.

Loyal following

The loyalty benefi ts of partnering with a recognised chain are clear - as part of a network you enjoy access to benefi ts off ered exclusively to guests of the brand. In an online travel world dominated by huge global booking agents, ‘owning’ your guest has never been more important. Loyalty networks incentivise guests to stick with a brand and create repeat business across the group.

A loyalty program is almost a pre-requisite for any property looking to att ract those travelling for work in 2020, and accruing points means those business travellers are far more likely to rebook directly and return with their families. Franchise networks off er extensive loyalty network systems which encourage guests to rebook with a brand and help drive repeat business across the group.

Property management

While any quality modern PMS system should interface easily with myriad soft ware systems, systems employed by networks generally off er enhanced connectivity and functionality. Franchise opportunities tend to include access to a property management system which facilitates the creation and selling of marketing campaigns across multiple platforms, encouraging guests to book with any of the group’s franchisees.

The power of many

Larger accommodation brands are savvy about ways to drive direct bookings. While guests might not think to check the website of a niche property to see if there are any benefi ts to booking direct, people tend to know that big brands off er free wifi , complimentary extras or discounts to those who pick up the phone or book direct online.

Networks represent an overarching set of values to guests which help market their individual members. They have the available resources to consider diff erent advertising campaigns and techniques, whereas those going it alone might not have the funds to employ social media savvy and marketing ingenuity.

And within a quality brand which sets high expectations for guest experience, there’s the fl ow-on eff ect of fellow operators creating such a positive experience for guests that it convinces them to book again under the same brand umbrella. The crosspollination of guests is especially helpful for those in competitive markets, where guests are likely to ‘go with what they know’.

Franchises inevitably have much greater clout to negotiate lower OTA commissions on behalf of their franchisees than individual operators, and a far more powerful voice with which to argue policy and procedure.

Expectations and reputations

Where independent properties have to start from scratch when it comes to reputation, franchisees benefi t immediately from the reputation of a parent franchise.

But they are required to adhere to a predetermined set of quality standards, so there’s never a doubt about what’s expected when it comes to benchmarks, and guest expectations are pre-ordained and pre-managed.

The very specifi c standards franchisees sign up to ensure those guest expectations should always be met and brands are circumspect about operators they welcome into the fold, putt ing prospective franchisees through a lengthy selection process.

Reputation cuts both ways - franchisees can benefi t from the reputation of a brand, but that brand need to protect its standing and ensure any new addition will be a positive addition.

Typical guest expectations for a franchised property will involve good matt ress quality, in-room food options, strong amenity off erings, etc. Some of these are things that can be diffi cult for independent properties to provide off their own bat and franchisors will oft en support expectations that are diffi cult for members to deliver - helping with arrangements for free wifi delivery, for example.

City Edge Apartment Hotels

– Service with an Edge®

City Edge Apartment Hotels have been known for two decades for friendly, effi cient reliable and low-cost apartment solutions, servicing the needs of informed and value conscious travellers.

Founded by CEO Peter Cushen and Managing Director Irena Cushen in 2006, City Edge has now grown to over 7 locations in Australia including North Melbourne, Melbourne CBD, East Melbourne, Box Hill, Brisbane CBD, Dandenong Central and South Melbourne.

The driving force behind City Edge Apartment Hotels is a husband and wife duo with an intuition to grasp opportunity when they see it and the business acumen to realize it.

In 2002, Peter and Irena bought a 20-room motel leasehold in the inner-Melbourne suburb of Brunswick. In 2003 they purchased the Treasury Motor Lodge in East Melbourne. About 200 metres away was City Edge East Melbourne Serviced Apartment Hotel. The City Edge name had obvious potential as a brand name, so that business was acquired too. At that stage, all three leaseholds traded under diff erent names.

The City Edge words and logo were trademarked. The Brunswick motel was sold, and Treasury Motor Lodge was re-branded to City Edge East Melbourne Serviced Apartments. The die was cast, paving the way for an expanding presence in the Melbourne hotel scene. That presence has come a long way, with Peter as CEO and Irena as Managing Director. Expansion began in earnest in 2009, when they opened City

Edge on Elizabeth as a brand new property in Melbourne’s CBD, then added another new build, City Edge North Melbourne, the following year. In 2015, the Explorers Inn in the Brisbane CBD was purchased and re-branded to City Edge Brisbane Hotel. In the same year, construction of City Edge Box Hill commenced, on a block of land purchased by Peter and Irena some years earlier. A planning permit had been sought and granted for a mixed use development of some 9 storeys, which at the time was one of the tallest buildings in Box Hill. This was the fi rst purpose built City Edge, and it was an execution of the vision of what subsequent City Edges would be. In 2018 City Edge Dandenong was added to the portfolio, extending the reach from the CBD to 35 kilometres out to the east. City Edge off ers self-contained apartments and hotel rooms featuring: Friendly staff with local knowledge Fully furnished studio, 1, 2 and 3 bedroom apartments and hotel rooms

Kitchen/kitchenett e

Laundry facilities (inapartment or within the property) Resident manager and CCTV security Secure, fast and effi cient online booking Strategic and convenient locations

Free WiFi

The latest and greatest – City Edge South Melbourne Apartment Hotel

Launched late February 2020, City Edge South Melbourne is an apartment hotel without compromise. The hotel comprises 69 4.5 star apartments in varying confi gurations. The hotel franchise partners, Ronnie and John, were selected aft er passing City Edge’s rigorous selection process and immediately proved their worth in trying circumstances.

The hotel was opened just as the Covid-19 pandemic struck. Yet, in true City Edge form, the hotel thrived and turned a profi t in only the second full month of trading. Peter Cushen, CEO and cofounder of the City Edge chain said “the thing that sets City Edge apart from other hotel brands is its ability to adapt to changing economic conditions. We have a track record of fi nding new markets and revenue streams when the going gets tough. City Edge on Elizabeth was opened during the GFC, and City Edge South Melbourne opened during Covid-19. Our ability to innovate means that all seven of our hotels have remained open – and profi table - during the pandemic, and we are confi dent of surviving this diffi cult time.”

The environment and City Edge

Too much carbon in the atmosphere, caused by human activity, is altering the world’s climate.

City Edge has embarked on a program to reduce its carbon footprint, the ultimate aim being carbon neutral. City Edge is committ ed to the sustainable use of renewable and recyclable energy and consumables and the reduction of waste on an ongoing basis.

The City Edge franchising program

The City Edge franchise program, launched in 2014 aft er some two years in development, always involves the selection of a premium location, followed by exhaustive due diligence. Only aft er a very vigorous process is an agreement to lease executed. Peter and Irena never sign a lease they would not be prepared to operate under themselves. This approach gives prospective and profi table accommodation and fi nancial goals whilst at the crockery, cutlery and

new franchise partners. “We are City Edge takes great care to protect the reputation of the brand. The City Edge trademarks

franchise partners confi dence that they are buying into a business with the highest possible prospect of ongoing profi tability. Every time City Edge opens a new hotel, an opportunity presents itself for hands on, motivated individuals who aspire to own and operate an effi cient, eff ective business.

Franchise partners are responsible for delivering a pleasurable and rewarding accommodation experience leading to the development of loyalty, referral and repeat business for the City Edge brand.

City Edge believes that the success of the brand lies inherently in a mutually benefi cial relationship between the franchisor and franchise partner. Because of this understanding, the City Edge model has been developed to ensure that its operators achieve their personal same time, promoting and growing the City Edge brand. As the franchise partners succeed, the relationship strengthens, and business success is further enhanced.

City Edge on Elizabeth, in the heart of Melbourne’s CBD, is retained under Peter and Irena’s direct ownership. This means they keep some “skin” in the game and use it as a training hotel for fi rst and foremost hoteliers, and we never want to stray too far from the reason we entered the accommodation industry in the fi rst place, which is being hands on operators, as we expect our franchise partners to be”, says Irena.

a desire to deliver exceptional, effi cient and aff ordable accommodation experiences, and always at the best value, for people traveling for business, leisure or any other purpose.

Loyalty – A dedication to driving loyalty to the City Edge brand at every opportunity.

Guest experience – A devotion to clean, safe and rewarding accommodation experiences for every guest.

Stakeholders – A commitment to ensuring that all stakeholders achieve the best possible return on their investment.

Innovation – A passion for engaging audiences through innovative and empowering online experiences

Why City Edge

Lots of fl exibility – stays from just one night to weeks or months

Kitchens/kitchenett es with hotplates, microwave, are:

glassware. Laundry facilities with washer/dryer and iron/ ironing board enabling guests to save on hotel restaurant bills & laundry costs More living space – a whole apartment with separate bedroom/s, bathroom & living areas & many have desks so you can work, rest and play Cheaper rates than many traditional hotels of a similar standard/location due to minimal or no servicing – especially when staying medium to longer term Freedom to come and go as you please with a relaxing, Comforts of Home® atmosphere – great aft er a hard day’s work

Registration No. 1203282

The Comforts of Home

Registration No. 1248786

CITY EDGE

Registration No(s). 1251359/1793857

Service with an Edge

Registration No. 1434996

Registration No. 1530352

for savvy travellers

Registration No. 1530462

Go anywhere. Stay here

Registration No. 1841068

City Edge quick facts

• The City Edge name has been in business since 1995 • City Edge has been off ering franchises since 2014 • City Edge boasts a loyal customer base (60% repeat) • Market Segment FIT Travellers (40%) • Market Segment Corporate Travelled (40%) • Alliances with Travel Agents and GDS • Access to Consortias and RFPs • Centralized PMS, CRS, mail server, website with booking platform • Central Reservations, Central Support Offi ce, Group Marketing Support • City Edge enjoys relatively stable occupancy • City Edge does not suff er from seasonal fl uctuations and industry downturns • City Edge is the fi rst choice for hospitals, groups and savvy corporate travellers • City Edge leads the way with online technology • City Edge has superior intellectual property with seven registered trademarks • City Edge is growing its Average Room Rate, however, we are still signifi cantly bett er value than most of our main competitors - by up to 15% for comparable accommodation.