Dear Owners,
The year 2022 has been a momentous time for Magnuson Hotels.
It certainly delivered surprises, but progress has not been impeded. Despite challenges, we have come together as a community, growing steadily and going all in on the future of hospitality. As the year comes to a close, it is my pleasure to share our most profound achievements of 2022 and what we intend to accomplish moving forward.
But first, let me say thank you for giving us the opportunity to serve you and be a part of your lives. We have built this company with the vision to create freedom, opportunity and growth for owners like you. As we have grown over the years, we have drawn inspiration from this community that shows us what truly is possible.
USA Franchisor Status
To strengthen the company, Magnuson Hotels became certified as a franchisor this year across all 50 US states by the US Federal Trade Commission. This will drive more recognition with the US lending industry to increase bank financing access for Magnuson Hotel franchisees and independent affiliates. Franchisor status will help the company attract higher quality hotels, which will positively affect your association with our group of hotels.
New consumer marketing programs
While other chains have consistently reduced marketing budgets since 2020, we understand the need to drive more visibility cannot be overstated in the current scenario.
A global video campaign is now in place to showcase our great hotel partners across the USA and I invite you to take a look.
We are also bringing together a host of new consumer marketing initiatives designed to capture all-season direct business. First of these was our first Black Friday sale that went live on 14 November 2022. Additionally, winter 2022/2023 digital marketing campaigns have commenced driving new off-season direct business.
Growth in new hotels
Our network has grown steadily in the last year with the addition of new hotels and the renewal of long-term partners. One of the key milestones is the launch of our first branded hotel in the UK with Magnuson Hotel Sandy Lodge Newquay in Cornwall. This growth is a testament to the depth of our relationships, the industry’s underlying confidence in our business model and the power of our brand. Please join me in welcoming some of the hotels to come on board recently:
Welcome our first branded hotel in the UK!
Magnuson Hotel Sandy Lodge Newquay
Newquay, Cornwall
WAFER 450 Hotel
Santa Clara, California
Express Inn Thomson
Thomson, Georgia
Magnuson Hotel Ironwood
Ironwood, Michigan
Indianhead Ironwood Hotel
Ironwood, Michigan
The year 2023 will be another critical turn for the hospitality industry: We expect economic stress to be a dominant factor for the foreseeable future, as it has been for the last two decades beginning with 9/11, 2008, 2020 and into today’s post-Covid era. We believe that the best strategy in uncertain times is to be certain of yourself and your operation. And to drive certainty in terms of revenue growth and operational cost reduction for you, we are investing more than ever in new technology, marketing, and OTA-alternative distribution.
Coping with labor shortages: You can now offer online check-in, as well as an automated front desk, reducing your labor costs significantly via the Magnuson Cloud PMS. You can also reduce housekeeping labor costs with our automated housekeeping management system.
Reducing OTA costs: If you want to reduce your OTA costs and dependency, we now offer a new OTA-Alternative Distribution network, which targets business from local companies and segments such as construction, industrial, government, schools, and medical. We encourage you to also embrace the use of GDS channels as a lower cost and more sustainable source of business than OTAs.
Magnuson Hotels started with a question: is there a better way to run the hotel franchise business? A better way that is based on authenticity, profitability, and our purpose within our communities. In a few months, this endeavour of ours will turn 20 years old. Few companies have made it to this point operating on the values that we do. We have always strived to make decisions that help you keep your profits and your independence and individuality, and we are not changing that now, or ever. It is our mission to see that your business accelerates the way you want it to.
Despite the changes we all face, we believe there has never been a better time to be in the hospitality industry. And that is because unlike other highly controlled hotel franchises, each of us at Magnuson Hotels can control our future with individual leadership within our companies and communities. Our industry is based on the core precepts of offering a secure place to stay, with kindness and compassion. And our hearts and independent style are what will make us and our businesses stand apart from all others. There has never been a more important time than now to go big on kindness. And with the certainty of heart, our businesses will grow vibrantly by welcoming new guests and by being of greater service to each of our communities.
When Melissa and I started Magnuson Hotels 20 years ago, we made a commitment to each of our partners. “We will always do what we say we are going to do.” We can’t guarantee what the next year or the future will bring, but please know this: when a hotel owner comes to us for assistance, we will stop at nothing to help.
This journey of the past 20 years has made us who we are. To our franchisees and partners who have been with us for years and also the partners who have just joined us in 2022, we thank you for believing in us.
Our journey as a group of hotels charting a course based on independence is just getting started. And from Melissa and me, we wish you, your families, employees and loved ones Happy Holidays and a very Happy New Year.
Thomas Magnuson – CEO, Magnuson Hotels Worldwide
