Addressing the balance
In a weakening market, ensuring the interests of the hotel owner and operator are aligned is essential for the successful financial performance, say Richard Bursby and Paul Smith.
There has been a trend in recent years for hotels to be operated on behalf of the owner by a third party operator under a management agreement. One of the vital requirements for a successful relationship between a hotel owner and operator is the alignment of interests between the parties and the main tool the parties have used to realise this is through linking the income each party receives to the revenue and profits generated by the hotel.
Lawyers Richard Bursby
This article first appeared in Hotelier India in May 2009 and is reproduced with the permission of the publisher.
