OPERATOR SELECTION
One contract. Ten years of returns.
Management agreements and franchise deals are written by operators and brands, for operators and brands. They negotiate these every week. You might do it once.
We level the field.
IN DETAIL
What we do
Define the strategy first. Brand or independent? Full-service, soft brand or lifestyle operator? We start from your asset, your market and your exit, not from who called you first.
Run a competitive RFP. We take your asset to the major brands and the operators that fit, compare proposals side by side, and make them compete.
Benchmark and negotiate the terms that matter: base and incentive fees, owner's priority return, performance tests, termination rights (including on sale), key money and its repayment terms, territorial protection and the PIP.
Underwrite the deal before you sign. PIP walk-through and budget, operator pro forma and business plan, stress-tested against your hold period and return targets.
Manage the transition. When an operator isn't delivering, we build the case, select the replacement and run the handover so the hotel doesn't lose a month.
Why it matters
A weak performance test means you can't remove an operator who misses budget.
A badly negotiated PIP can cost more than the key money you received.
Fees that look small on revenue can take a large share of your profit.
You only see these traps if you've sat on the operator's side. We have.
Results (client names withheld)
Ran a brand selection across the major hotel companies and negotiated a conversion term sheet including key money. PIP budget and conversion in progress.
Compared four extended-stay and lifestyle operators for a residential-to-hospitality conversion, negotiated the management agreement and opened on schedule.
Renegotiated operator and vendor contracts across a hotel portfolio. See the case study.
Questions owners ask
Should my hotel have a brand or stay independent? It depends on where your guests come from. A brand brings its booking system and loyalty members. Independence saves fees and keeps you flexible. We run the numbers for your asset before recommending either.
What is key money? Cash a brand or operator pays the owner up front to win the contract. It's negotiable, and it usually comes with repayment conditions you need to read carefully.
Can I get out of my current management agreement? Sometimes. It depends on the performance tests and termination rights in your contract. We'll review it and tell you plainly.