Asian luxury hotelier franchise business models: Success factors and challenges in global expansion

This research study examines franchise business models in the Asian luxury hotel sector, focusing on their success factors and challenges during global expansion. It contextualizes the discussion within the region’s economic growth, cultural diversity, and rising demand for luxury hospitality. By employing a mixed-method research design, the study evaluates strategies used by hotel brands to adapt to diverse markets, such as leveraging local knowledge and maintaining brand consistency. Challenges like regulatory complexities, cultural differences, and talent acquisition are explored. The research integrates frameworks like agency theory and service-dominant logic to understand the dynamics of franchisor-franchisee relationships. Findings highlight the importance of operational excellence, marketing strategies, and cultural adaptability in achieving success. The study also identifies the role of digitalization and consumer engagement in transforming franchising strategies. Offering practical recommendations for hoteliers, policymakers, and investors, this research contributes to both academic literature and industry practice, addressing gaps in understanding the interplay of franchise models and market dynamics in Asia’s luxury hospitality landscape.