Consulting

Operator / Brand Appointment

The identification of the appropriate brand and operator can be a daunting task and can invariably become a long term financial commitment for an owner.

In many cases, hotel companies have attempted to adjust their branding to accommodate a variety of different geographical locations, tailoring their product and service deliveries at specific target markets and demographic influences. 

Notwithstanding the fact that there are many hotel brands on the market, choosing the right one for a specific hotel should be based on the best fit for the location, type and size of the hotel, as well as the brand’s distribution network and representation in the hotels predominant feeder-markets. 

Depending on the project finance (in cases of new developments) or funding requirements (in cases of acquisitions) of an owner, coupled with the specific risk profile of the transaction, it is always advisable to try and introduce some form of debt funding from a financial institution or investment partner.  In our experience, any funder would want to be assured that the hotel’s business plan is based on sound principles and has been thoroughly researched (click on MARKET & FINANCIAL FEASIBILITIES), but also that it is properly developed (click on DEVELOPMENT MANAGEMENT) and run by competent and reputable operators (click on MANAGEMENT).

In view of the aforementioned and based on the assumption that an owner prefers to go the brand and operator options, we are amply qualified in achieving the objectives for both, the financial institutions as well as the owners.

In this report we will provide an overview of the different types of agreements and their impact on the hotel. The structure of the report is as follows:

• Current Overview
• Definition of Basis for Fees
• Hotel Franchise Agreement
• Hotel Management Agreement
• Hotel Lease Agreement
• Hotel Consortia Agreement
• Selection Process
• Selection Criteria
• Summary

Please click here to view this report in PDF version.