Ownership perceptions in European hotel management agreements

Research output: Contribution to journalArticleScientificpeer-review

Abstract

The hotel management agreement is a common, but arguably at times misunderstood, hotel operating structure. This study has sought to explore how both owners and hotel management companies (“operators”) perceive aspects of ownership in managed hotels. In-depth interviews were held with both operator and owner executives and it was found that, even though interviewees appeared to be aware of the nature of the relationship established by a hotel management agreement, in practice operators in particular use a working definition of the model that is more akin to a lease. Misunderstandings of the hotel management agreement can cause confusion as to where risks and responsibilities lie. Based on these findings, we argue that ownership of the operating business, in addition to that of the hotel’s real estate, deserves to be more explicitly acknowledged and addressed.

Keywords

  • Hotel management agreement
  • hotel investment
  • hotel management contract
  • lease
  • real estate

Cite this

@article{51cc864b0bcc4443973eccd086ba3235,
title = "Ownership perceptions in European hotel management agreements",
abstract = "The hotel management agreement is a common, but arguably at times misunderstood, hotel operating structure. This study has sought to explore how both owners and hotel management companies (“operators”) perceive aspects of ownership in managed hotels. In-depth interviews were held with both operator and owner executives and it was found that, even though interviewees appeared to be aware of the nature of the relationship established by a hotel management agreement, in practice operators in particular use a working definition of the model that is more akin to a lease. Misunderstandings of the hotel management agreement can cause confusion as to where risks and responsibilities lie. Based on these findings, we argue that ownership of the operating business, in addition to that of the hotel’s real estate, deserves to be more explicitly acknowledged and addressed.",
keywords = "Hotel management agreement, hotel investment, hotel management contract, lease, real estate",
author = "{Van Ginneken}, RJ and K Koens and J Fricke",
year = "2017",
doi = "10.1080/15256480.2017.1397586",
language = "English",
journal = "International Journal of Hospitality & Tourism Administration",
issn = "1525-6480",
publisher = "Taylor & Francis",

}

TY - JOUR

T1 - Ownership perceptions in European hotel management agreements

AU - Van Ginneken, RJ

AU - Koens, K

AU - Fricke, J

PY - 2017

Y1 - 2017

N2 - The hotel management agreement is a common, but arguably at times misunderstood, hotel operating structure. This study has sought to explore how both owners and hotel management companies (“operators”) perceive aspects of ownership in managed hotels. In-depth interviews were held with both operator and owner executives and it was found that, even though interviewees appeared to be aware of the nature of the relationship established by a hotel management agreement, in practice operators in particular use a working definition of the model that is more akin to a lease. Misunderstandings of the hotel management agreement can cause confusion as to where risks and responsibilities lie. Based on these findings, we argue that ownership of the operating business, in addition to that of the hotel’s real estate, deserves to be more explicitly acknowledged and addressed.

AB - The hotel management agreement is a common, but arguably at times misunderstood, hotel operating structure. This study has sought to explore how both owners and hotel management companies (“operators”) perceive aspects of ownership in managed hotels. In-depth interviews were held with both operator and owner executives and it was found that, even though interviewees appeared to be aware of the nature of the relationship established by a hotel management agreement, in practice operators in particular use a working definition of the model that is more akin to a lease. Misunderstandings of the hotel management agreement can cause confusion as to where risks and responsibilities lie. Based on these findings, we argue that ownership of the operating business, in addition to that of the hotel’s real estate, deserves to be more explicitly acknowledged and addressed.

KW - Hotel management agreement

KW - hotel investment

KW - hotel management contract

KW - lease

KW - real estate

U2 - 10.1080/15256480.2017.1397586

DO - 10.1080/15256480.2017.1397586

M3 - Article

JO - International Journal of Hospitality & Tourism Administration

JF - International Journal of Hospitality & Tourism Administration

SN - 1525-6480

ER -