Hotel Management Contract at a Glance
A Hotel Management Agreement is a form of cooperation between an owner/investor and a hotel operating company. The hotel owner pays a management fee to the hotel operator for management services and, in return, the owner transfers full responsibility of the daily operations of the property to the operator. The operator offers a range of hotel management capabilities which include branding the properties, expertise in sales and marketing and cost efficiencies. A contract term is usually stipulated in the agreement and a fee structure is agreed upon by both parties.
Mamaison Hotel Management offers a non-standardised brand with diverse properties united under the umbrella of one brand. Our hotels cater to individual and niche interests. Mamaison delivers financial efficiency, strong and expert sales and marketing and offers the opportunity to cross-sell its various properties. The brand is a market leader in the local CEE region, as is evidenced by the various industry awards received such as The Conde Nast Traveller Award and the Trip Advisor Traveller’s Choice Award.
Advantages of a Management Agreement:
- The management company offers operational expertise and a recognised brand
- The owner benefits from the operator’s marketing and revenue management capabilities
- The operator ensures increased cost efficiencies
- The hotel profits due to quality management, professional experience and reliable management
- There is increased purchasing power and economies of scale
- This is advantageous for financing; banks lend money more easily to branded hotels
- The operator provides more specialised technical services and preopening expertise
- This structure drives additional value for the business
- Added market value of real estate
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