Paul Breslin and Julia Zhang of Horwath HTL Atlanta, GA, USA, have written our latest Industry Report, focusing on the nine elements you should consider when selecting a hotel management company.
“The alignment of goals between owners and operators has always been difficult, due to the different perspectives of both parties. Owners primarily care about increasing asset value and bottom line cash flow, while management tend to focus more on daily operations and top line revenue. To help align these efforts and achieve great results, it is important for owners to find professionals who have experience in operations and are able to add great value to the asset. In this case, the asset manager, owner’s representative, plays a key role in management selections, contract negotiations, monitoring performance, strategic planning, and balancing the priorities of both owners and management.
Overall, the owner, asset manager, and management company must synergize their expertise when working towards the ultimate goal of the successful business.”