Lake Delton Finance Committee Hopes Area Hotels Pay Royalties and Advertising Mandates

The Village of Lake Delton Finance Committee wants to increase the number of franchise hotels in the area. Franchise hotel systems require accepted locations to pay monthly royalties and mandates spending on  advertising.

Consider this simple example calculation:

- monthly royalty : 15 percent of monthly revenue

- advertising mandate : 7 percent of monthly revenue

In this example 22 percent of the hotels monthly revenue is required to be sent outside of the local area.  Royalties in this example means 15 percent of the monthly revenue must be sent to corporate headquarters.  Advertising mandate in this example means 7 percent of the monthly revenue must be sent for advertising the national hotel brand.  This removes money from a local economy.

As regulatory policy is being crafted through local political positions - it may seem reasonable to question the value of the hard push toward franchise hotels.