Finding the right hotel management company is one of the most important decisions that a hotel owner can make. You don’t always want to jump the gun on the first deal you come across. Like most things in life, there are a lot of variables to consider.
Not all management companies are equal
Know your options. Get to know multiple management companies and compare contract terms by negotiating the best deal possible. Ask yourself if they can provide the necessary services while considering the location and the other hotels under their management. Looking through their portfolio, you’ll get a better grasp of their brand.
Understand your property and have clear objectives
A developer building a full-service hotel in an urban market might not be the best match for a management company operating select-service markets in the Midwest. Before you can even get to the comparison stage, you need to have a vision.
This also extends to the corporate identity of the company. While you want the best deal for your asset, you should make sure that they’re a good fit. It’s the same as recruiting talent with the hopes of finding a culture fit. You want your management to align with the environment. If you are a more hands-on owner, then you’ll want to avoid a company that wants full reign over hiring personnel.
Look at their case studies
Even if the management company is in a perfect location, operates similar properties and has a seemingly fitting corporate identity, don’t forget to look at their case studies and references. These should back up your expectations. References provide insight that management may not showcase.
Get help
Hiring an experienced hotel asset manager can help new owners through the process. Along with that, a practice area that is in demand is our owner-advisory services. At JDI, we match hotel owners to the right hotel management company. For nearly two decades we’ve developed intimate intellect and relationships with the top 250 hotel companies. The only companies we are not able to refer are the handful we chose not to represent.
If you’d like to explore the optimal companies to run your assets, we would like to schedule a consultation. Our fee is paid by the management company if they are selected as your operator. Feel free to find more information here.