Independent hotels are signing up as franchisees with international chains in a bid to beat the competition from new hotels, and increases in commissions by online travel agencies (OTAs).

AccorHotels predicts there could be as many as 20 new franchise hotels by the end of 2016. The group is on track to double its current franchise network in the Pacific region in just three years.

While there has been city growth, particularly at airports, hotels in regional areas in particular have chosen to join the AccorHotels network in response to tough economic conditions – for instance, Victorian towns such as Ballarat and Warragul; Launceston; and Byron Bay, Goulburn and Maitland in New South Wales.

The Sebel, Mercure, Novotel, ibis, Pullman and the MGallery Collection chains have all embraced new franchisees. The Sebel brand is increasingly popular with owners of apartment-style hotel properties.

“It has been an incredibly successful year for franchising, said AccorHotels vice president development Pacific and vice president operations franchise, Lindsay Leeser.

“AccorHotels has built up its franchise network for over a decade, being the first hotel group in Australia and New Zealand to establish a dedicated franchise division, and the momentum has built to top pace with 2015 and 2016 set to be the fastest growing era for franchising in the region’s history.”

Hotel owners who are reliant on OTAs for the majority of their bookings could be paying 20 percent commission on each booking next year, suggested Leeser.

“This is a vast increase from the 10 percent levels that Wotif used to charge just a few years ago. And overseas trends suggest that commission levels could rise even further in years to come,” he said.

“Franchising offers hotel owners who want to manage their own hotels a toolkit to maximise the potential of their investment. With record levels of new hotel supply coming on the market over the next five years, AccorHotels’ branding and distribution strengths can ensure the hotel has the potential to perform at above-market levels irrespective of the overall market condition.”