What are the main differences between the different types of hotel management agreements (management, ownership, franchising, etc)?
A management agreement is where an owner of a hotel business appoints a management company to manage the hotel on behalf of the owner. A lease is where the real estate owner of a hotel leases the building to a hotel operator and receives rent from the operator. Onwer/operator is the phrase used to describe an owner who usually owns the real estate and business and manages his own hotel business. A franchise agreement is where an owner/operator wants to manage his own hotel business, but under an international brand. He licenses the brand name and access to the reservations system from an international hotel brand owner. Many of these can be done in combination – for example an hotel operator can lease a building from the real estate owner, but operate the business under a franchise agreement. Sometimes an owner can appoint a manager to manage the business under a management agreement, but the manager does not own a brand and so the owner also enters into a frnachise agreement with a br
