- The hotel management market is undergoing
a structural shift from "ownership" to "management."
More than 65% of small and medium-sized hotels, resorts, and pool villas are abandoning direct operations and opting for
management agency or consignment models . - As of 2025, the domestic market size is expected to be approximately KRW 1.6 trillion , with an average annual growth rate of 11.8%
expected over the next three years (based on data from the Ministry of Land, Infrastructure and Transport and the Korea Tourism Organization). - Overseas, Marriott Bonvoy / Hilton Garden Inn / Wyndham Group have already
completed the transition to the 'Franchise Management Agreement' system. - In Korea, UrbanStay / H Avenue / Silla Stay
are leading the consignment management market, and demand
for new franchise-type consignment management brands is rapidly increasing.
division | Subject | Key needs |
|---|---|---|
| Hotel owner (individual/corporation) | Real estate holding type | Stable consignment income and minimal vacancy rate |
| Franchise headquarters | Brand management type | Rapid expansion, fee-based sustainable revenue |
| Operating agency (management company) | Practical operation type | Professional staff, cleaning, and reservation management services |
| Investors and REITs | Asset management type | Maximize returns and diversify risks |
| Local governments and tourism organizations | Public consignment | Efficient management of local tourism assets |
step | detail | explanation |
|---|---|---|
| 1️⃣ Brand Consignment Agreement (Franchise Agreement) | Owner ↔ Headquarters | Brand Usage/Operation Manual/Commission Agreement |
| 2️⃣ Management Contract | Headquarters ↔ Professional Operation Company | Human Resources, Reservations, Housekeeping, and Accounting Management |
| 3️⃣ Revenue Share Structure | 5:3:2 between owner, headquarters, and operating company | Affiliate Management Revenue Loop Configuration |
field | Key Partners | role |
|---|---|---|
| PMS/Reservation Management | ONDA, D-Edge, Agoda Cloud | Integrated reservation and revenue management |
| Housekeeping | Beautification specialist company, local contractor | Cleaning, Laundry, and Consumables Management |
| OTA/Distribution | Booking, Expedia, Naver Travel | Global sales network connection |
| IT·AI | Yes. K-Hotel AI Loop | Automatic analysis of yield and OCC |
| Interior and Maintenance | Hotel specialist SI, eco-friendly facility company | Standardized facility renewal |
| Finance/REITs | NH Investment & Securities, REIT AMC | Asset securitization and investment model support |
division | Components | Revenue items | note |
|---|---|---|---|
| Headquarters (Franchise HQ) | Brand usage fee + management fee | 3-5% of sales | Branding, Training, and QA |
| Operator | Consignment operation fee + performance bonus | 10-12% of sales | Field management/sales management |
| Owner | Net profit (50-65%) | Rent/equity income | Asset value maintenance type |
| Supply Chain (Partner) | Cleaning, Laundry, and F&B Delivery | Delivery fee | Cooperative revenue structure |
- AI RevPAR Engine: Real-time adjustments to room unit price, occupancy, and seasonal data.
- OCC Forecast Loop: Automatic forecasting based on past reservation patterns, weather, and event data.
- Automated Settlement System: Automated profit distribution between headquarters, operators, and owners.
- IoT Maintenance: Managing Energy, Cleaning, and Housekeeping IoT Sensors.
- Dynamic Pricing + OTA Sync: A system that reflects the same real-time optimal price.
- AI Claims Management: Automatically analyzes customer reviews and provides a risk sentiment index.
item | unit | black eye | note |
|---|---|---|---|
| Initial contract deposit | Per room | ₩1,000,000~₩1,500,000 | Average size of 50 to 100 rooms |
| Monthly entrustment yield | Annual average | 15~25% | OCC 65-85% standard |
| Average profit distribution | Owner:HQ:Operator | 5:3:2 | Basic structure |
| Payback period | 24~36 months | Stable contract type | |
| Operating cost reduction effect | Annual | 12~18% | When applying AI and automation |
field | detail |
|---|---|
| Energy saving | IoT-based automatic heating, cooling, and lighting control |
| Regional coexistence | Local workforce employment and local food supply contracts |
| Waste Management | Carbon Reduction Solutions for Guestroom Detergent and Laundry |
| transparent management | Operational Data and Customer Review Disclosure System |
characteristic | Δ(prediction) | analysis |
|---|---|---|
| Number of consignment management contracts | +32% | Expansion centered on small and medium-sized hotels |
| Number of consignment franchise brands | +25% | Surge in new entrants |
| Improving RevPAR | +18% | AI and data-based management |
| vacancy rate | ▼12% | Automation and OCC prediction effects |
| Reduce operating costs | +14% | Efficient management structure |
1️⃣ The hotel consignment management franchise industry is a key growth driver for the lodging industry, which is shifting from ownership to operation.
2️⃣ Combining AI and automated operational technologies with brand reliability can increase profitability by 1.3-1.5 times
in the small and medium-sized hotel market . 3️⃣ The consignment structure is a risk-distributed business model that can also be applied to asset REITs , investment-type accommodations, and local government tourism facilities. 4️⃣ The number of new franchise operators is expected to increase over the next three years, necessitating market standardization and certification systems.
One-line summary:
“Hotel consignment management franchise” is a BizHub industry with a three-party revenue sharing system among the owner, operator, and headquarters . It is a key market that will simultaneously innovate the efficiency and profitability of the Korean accommodation industry through an AI and data-based consignment operation system .
