Franchise agreement for new 120-key, upper-midscale hotel in San Pedro Sula, Honduras

Project Scope

To ensure the project met its return thresholds, the Owner’s asset-management team approached negotiations with a disciplined strategy grounded in competitive bidding, financial modeling, and deep knowledge of regional brand economics.

By inviting multiple global brands to compete for the flag, the Owner created meaningful leverage that opened the door to concessions on fees, territory, and support services. Detailed 20-year financial models allowed the team to quantify the long-term cost of each proposal and negotiate from a position of clarity, ensuring that every adjustment had measurable economic impact.

The final agreement delivered several major wins: reduced franchise and marketing fees, a key money contribution, expanded territorial protection, and start-up complimentary brand services. These negotiated benefits not only improved the project’s upfront capital structure but also strengthened its long-term competitive position in the market.

Across the 20-year franchise term, the Owner is estimated to secure USD 1.2 million in total financial value, significantly enhancing the hotel’s investment profile. This case demonstrates how strategic asset management and informed negotiation can materially improve owner economics while still securing a strong international brand partner.

Project Location

San Pedro Sula, Honduras