Franchise

Advantages by becoming Franchisee in Zleep Hotels

Copenhagen, March 2010

As a franchisee in Zleep Hotels there are many advantages, which you can benefit from. There are several elements which will give your hotel an improved identity in the market and nonetheless a strong position in terms of distribution and marketing. We are looking for hotels all over Denmark, which have a management which believes in its hotels and its business but who also intent to move barriers and concept towards a new and more effective direction. Furthermore, it will be done through the implementation of a well considered and tested budget hotel concept.

The vision for Zleep Hotels is – to become the leading budget hotel in the market, a cheap price alternative to traditional hotels. We must offer a great quality – always a neat and clean hotel room.

The mission of each individual hotel is to assure the hotel lives up to the Zleep Hotels concept, take advantage of the effective operation to always assure an affordable price and assure the distribution of the hotel through effective sales channels.

In order to assure satisfied guests as well as their appreciation we must, the employees, together behave in a culture which it notable with the below values: We are proud of being affordable We must be effective We must be honest and decent We help each other We must have a great time

What can you expect from Zleep Hotels??

We have thought more about the price than about luxury. But we never compromise on quality. We are a budget hotel – and we are proud of that! What is Zleep Hotels? We are the market answer to the low-budget airlines – on the ground. This is what we dream of! The budget concept Zleep Hotels must be supported by unique locations and be developed through a mindset which aim is to create effective work flow and develop the brand – especially for our guests.

Your advantages by being a Franchisee:

• The hotel can make use of Zleep Hotel logo and other name tags in marketing and signs for the hotel.
• The name of the hotel will be sold and marketed as Zleep Hotel (city).
• Décor and signs can with benefits be purchased through Zleep Hotels suppliers.
• Zleep Hotels uses Micros Fidelio Opera as booking system and this must be used by all Zleep Hotels.
• Zleep Hotel (city) is assured its own profile on all Zleep Hotels websites and participates under same conditions as any other Zleep Hotel in terms of marketing campaigns and mail shots.
• Commercial material and individual visibility is created by Zleep Hotels creative company and it paid for by the individual hotel.
• Zleep Hotels has employed its own sales manager which assures nationwide and local company agreements are signed and implemented.
• Distribution is assured through our common server, which make sure that all hotels in the system are available and visible on the internet, through GDS and selected IDS bureaus.
• Central booking which assures optimized phone sale for everybody.
• I connection to our booking department all revenue management is implemented so that all hotels always have their prices set depending on the demand in the local market and depending on the expected amount occupancy in the area.
• Franchisee must have a direct phone number for booking and for the hotel, however which can be redirected to the central booking department in Ishøj. This is to be arranged by the franchisee.
• Contracts for different purchases are offered in the degree it covers most of the products which a Zleep Hotel is in need of. It covers areas such as linen, cleaning materials, disposable articles, beer, soda, food for the breakfast buffet, machines for the breakfast buffet, vending machines, hotel specific software, wireless internet connection, credit card acquirer, Horesta membership as concern, electricity agreement. These are just some of the contracts. All agreements are made, so that the commission and discount accrue to the specific hotel. There is no commission or other type of discount to Zleep Hotels directly
• An agreement with Zleep Hotels is for a minimum of 5 years.
• The price is 3% of the net turnover in royalty fee for the use of trademark and name. There is no so called franchise fee because all marketing costs are paid by the individual hotel compared to the use and profile thereof. Therefore, it is possible to control your own level of costs.
• Franchisee pays a fee per booking of DKK 12.50 which covers the costs for the maintenance of the central booking department and revenue management. This fee must be cost and revenue neutral, and therefore the booking fee will change and be adjusted.
• All costs for the development of the trademark and update of the website are paid by Zleep Hotels.
• Zleep Hotels also help in the startup and implantation of the concept. We can also help with the training of staff in relation to the opening of the hotel and implementation of the booking system.

As a franchisee in Zleep Hotels you will go through an introduction period for approximately a month where you visit and work on different Zleep Hotels. During this period you will go through our working concept and see how everyday life on a Zleep Hotel is unfolded.

If you are interested in becoming a franchisee or to hear more about the options, please contact the CEO Peter Haaber directly on phone: +45 51 57 87 00 or e-mail: ph@norhos.com

Best regards,
Zleep Hotels, Peter Haaber