Our Business Model

First Hotels AB is a leading Scandinavian hotel chain that for over 30 years has delivered unique and memorable hotel experiences to guests in Norway, Sweden and Denmark. Our sound business model makes First Hotels an attractive investment in the hotel sector.

Our business model creates diversified revenue streams

First Hotels operates across three business areas: Franchise, Operations and Property, with each area playing a crucial role in ensuring the success and sustainability of the company’s hotel portfolio.

First Franchise: With a strong hotel brand and an attractive concept, we offer hotel owners a unique platform to grow their business. Underpinning this is a sound business model based on royalty fees. For hotel owners seeking economies of scale without marketing themselves under the First Hotel brand, we have developed the First Partner Collection, with its flexible business model where we take a portion of the revenue that First Hotels generates. This approach lowers both the entry threshold and the risk for a hotel owner who wants to enter into a partnership. 

First Operations: Our extensive experience makes us experts in running hotels with high efficiency and customer satisfaction. Through First Operations, we operate hotels where satisfied and returning hotel guests are the single most important factor for success.

Property: Through robust property investments, we create new business opportunities for First Hotels and a solid foundation for profitable growth. Developing and leasing properties for hotel operations has seen us further diversify our portfolio and establish new types of revenue streams. Our three-pronged business model enables First Hotels to thrive in the competitive hotel industry and deliver memorable experiences, while at the same time ensuring operational flexibility and strategic property management.

 

First Hotels Business Model

Our strategic hotel portfolio

First Hotels focuses on medium-sized hotels with strong local roots. We have hotels the length and breadth of Sweden, as well as key strategic locations in Norway and Denmark. The First Hotels® brand is positioned in the mid-range segment of the Nordic market, targeting the following categories:

  1. Local town-centre hotels: Mid-range hotels with 50–100 rooms and a strong local identity, located largely in provincial towns.
  2. Branded city hotels: Mid-range hotels with 100–150 rooms in larger towns and cities, offering competitive prices and services that meet the market’s needs.
  3. Independent hotels with potential: Unbranded mid-range hotels with< 100–150 rooms that wish to remain independent. In this case, First Hotels offers services such as distribution, digital platform and system management that help to optimise the business.

Our strategic benefits

With our extensive experience, First Hotels AB has created a range of strategic benefits that are available to our partners. Efficient operation and use of technology: Through a slimmed-down organisation and a focus on technological innovation, we are able to offer high-quality solutions to our franchise partners at an attractive price.

  1. Flexibility: We offer custom solutions adapted to the unique needs and wishes of each customer, without the need for major investment.
  2. Local connection: Our slogan “Your Local Hotel” sums up our strategy of drawing on each hotel’s unique strengths and tailoring the marketing and partnership to local conditions.
  3. Services: We provide distribution services, revenue management, purchasing, IT support and social media strategies to optimise the business of our franchisees.
  4. Value for franchisees: Our franchisees can expect strong distribution, strategic sales agreements, a loyalty programme, lower purchasing costs, harmonised guidelines and extensive marketing.
  5. IT platform: We offer a competitive advantage through our IT platform and support, delivering simplicity and efficiency for our franchisees.