Peer case
Net room contribution beat the headline royalty pitch
How and who for the hotel job—verified when attested.
Job: Decide flag, soft brand, or independent before you price it
Full-stack fee & PIP lines modeled
Verified100% of FDD
Royalty ramp negotiated
Verified24 months
Claim
A 10-year net contribution comparison across flag, soft-brand, and independent paths including full FDD fee stack and entry PIP.
Evidence
Executed franchise addendum, FDD item-6/item-7 fee worksheet, and IC underwriting memo.
Caveat
A 98-key leisure-heavy urban boutique; highway select-service houses rely more heavily on brand loyalty distribution.
Situation
At franchise expiration, two soft-brand proposals promised an 18% ADR lift. Neither deck netted out royalty, loyalty assessment, program fees, and the $14k-per-key entry PIP.
Approach
Redstone Advisory and Sable Desk built a 10-year net-room-revenue model comparing hard flag, soft-brand, and independent paths after all franchise assessments, OTA commission shifts, paid-search spend, and exit liquidated damages.
Outcome
Ownership negotiated a 24-month royalty ramp and a $450k key-money offset on the soft-brand path after proving the unadjusted PIP diluted year-three cash yield by 140 bps.
“Once loyalty assessments and the entry PIP sat on the same line as ADR, the negotiation changed in an hour.”
Who did the work
- 8.2
- 8.9