Hotel ownership can look considerably different from one owner to another. The perfect ownership model is one that best meets an owner’s needs and goals. Below are some of the most common ownership models.
Partnership
Owning a hotel requires capital. Combining resources with partners is one path to hotel ownership. Depending on the agreement, some partners may simply be an investment partner while others take a more active role in running the hotel.
Management Company
This type of ownership involves a hotel that is privately owned but run by a management company that charges royalties, based on the total revenues, to manage the daily operations of the hotel. This is a great option for someone that wants to own a hotel but has another career or priorities they need to focus on.
Owner-Operator
This is when an individual or family owns and operates a hotel. This type of ownership requires the most time and energy. Not only do you own the hotel but are responsible for the day-to-day activities such as revenue management, customer relations, human resources and more.
Regardless of the ownership model, one decision that every owner needs to make is if the hotel will be franchised or not. While an independent hotel has the ultimate freedom in running the hotel, signing an agreement with a franchise gives access to a proven business model including a plan in place to operate with professional support from the brand. This includes brand recognition, access to education, dedicated experts, technology, and marketing power.
When researching franchise partners, it is important to ask questions and choose a franchisor that will meet your needs as well as provide you the tools needed for success. Every company offers something different. If you are new to the hotel industry, make sure you find out what educational tools and resources the franchise has to guide you on your journey in hotel ownership.
