Strategies for the development of franchise model in hotel industry: China's case

Methods. This article presents a comprehensive analysis of the franchising business model employed by InterContinental Hotels Group (IHG) and its implementation in China's hotel industry. To evaluate the effectiveness of this model, a SWOT analysis was conducted, identifying the company’s strengths and weaknesses as well as opportunities and threats for further development. The study also considers macroeconomic factors, competitive dynamics, franchising strategies, and the role of state regulation in shaping industry outcomes. Results. The findings indicate that the franchise management model provides IHG with several strategic advantages, including enhanced brand recognition, increased market share, revenue diversification, and improved resource allocation. However, significant risks are also identified, such as high franchise fees, stringent operational requirements, and the necessity for rapid adaptation to evolving market conditions. Additionally, the article explores the role of government policies in regulating hotel franchising and their impact on the effectiveness of IHG’s franchise strategies in China. Novelty. This study highlights the unique adaptation of the franchise model to the Chinese market, which is shaped by distinct economic, cultural, and regulatory factors. The research identifies key mechanisms that enable international hotel chains to successfully integrate into new markets by adjusting their brand strategy and operational approaches. Practical value. The study's findings have practical implications for international hotel brands seeking to optimize their franchise operations, as well as for national companies considering the adoption of this model in Ukraine. The research provides insights into franchise business growth prospects, optimal scaling strategies, and policy recommendations for government regulation in the hotel industry. Special attention is given to economic sustainability, environmental responsibility, and strategic partnerships with local authorities to foster the development of tourism infrastructure.