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Vaibhav Aggarwal started Fab Hotels in 2014. This is built around the franchise business model. Although relatively young, Fab Hotels has had a phenomenal growth so far where the brand is now seen across the country of India. Aggarwal who’s also in the business of making furniture says that the franchise hotel was inspired by his parents’ business travels.
As a young kid, Aggarwal saw his parents go to Delhi every month and three-star hotels provided shelter while they were away from home. This gave him the idea of building hotels that will attract travelling SME owners. Such hotels will provide basic amenities and will provide the services at an affordable rate. He noticed that the local hotels lacked in the area of branding and had no consistency in their service, things that he wanted to address with his own group of hotels which he did by following the franchise model. What’s the secret formula to making it big?
For Fab Hotels, Aggarwal implemented three important rules. First, every hotel needed to adhere to standard operating procedures. Second, they relied on technology to make it easy to operate the business. And last, they drove awareness to their brand.
Fab Hotels also invested heavily in their people and provided staff training to ensure that guests will leave their establishments bringing with them a great experience. They also made it a point to track data within their own business and across brands that offered similar services so that they could implement changes as deemed necessary. Aggarwal hopes that in the near future, Fab Hotels would become the most sought after budget hotel brand in India.
Aggarwal built a brand is less than a decade, thanks to the franchise business model. He implied that it only worked because they saw the business from two perspectives – seeing it as a supplier and also seeing this as one of the guests in the establishment, a very valuable lesson if you are trying to build your own franchise business.