Chapter 2 Trends and issues in hotel ownership and control

Rob van Ginneken

Useful further reading (online)

  1. Stephen Collins and Sophie Perret (2015) ‘Decisions, decisions … Which hotel operating model is right for you?’ HVS Report April 2015

    https://hvs.com/StaticContent/3672.pdf

  2. Manav Thadani and Julie S. Mobar (2014) ‘Excerpts: HVS Hotel Management Contract Survey – USA, Europe, APAC’, HVS Report August 2014

    www.hvs.com/article/7025-excerpts-hvs-hotel-management-contract-survey-usa-europe-apac

Useful videos

‘The hotel industry – from the humble inn to a multi-billion dollar business’ Jones Lang LaSalle

‘All Change: The New Competitive Landscape of Multinational Hotel Companies.’ Video of Professor Angela Roper’s inaugural speech at the Institute of Directors, 20 May 2013

This very short video pulls together quite a few terms and concepts and explains in just a few minutes the important relationships owner-operator/manager-brand.

‘Word to the wise for hotel owners’ (Marks Paneth Accountants & Advisors, 2016)

Further discussion questions

  1. As mentioned in the ‘The current landscape’ section, a hotel operator can have a lease, a management and a franchise agreement in place for one and the same hotel. Discuss the potential benefits of such a construction, as well as the inherent risks.
  2. In the context of management agreements, Mr. Lawrence Cohen (see ‘Word to the wise for hotel owners’, number 3 in the ‘Useful videos’ section. i.e. www.youtube.com/watch?v=jRyBj5uITro) argues that hotel owners should aggressively manage the manager. The latter would generally prefer the kind of contract and relationship in which they can operate without any undue owner interference. What exactly constitutes ‘undue’ would probably be defined differently by each party. Discuss what an ‘ideal’ partnership might look like. Would this be different in case of an independent, as opposed to a branded manager?
  3. What effect could industry consolidation – as in Marriott taking over Starwood, and ACCOR acquiring FRHI Hotels and Resorts – have on owner-operator and brand relationships?
  4. How may industry disruptors such as OTAs and accommodation sharing platforms impact owner-operator partnerships and agreements?