Terms

We also offer a fee structure that is heavily weighted toward "pay for performance", "friendly" owner termination rights, and most importantly, we treat our property owners as partners to be "served" rather than "tolerated" – the bias often found in large hotel management companies.

Management Agreement:

  • Five-ten year terms, but most of our hotels stay with us longer!
  • Base fee 2.5% of gross operating revenue
  • Incentive fee is negotiable and is tied to performance against either pro-formas (new hotels) or operating annual budgets for stabilized hotels. Our traditional model is 20% of annual GOP in excess of the highest annual GOP booked in any of the previous five years.

Consulting Agreement:

  • Treadway, Simkins and Pujalet bill at $280/hr.
  • Other managers at $125/hr.
  • Administrative support at $40/hr.
  • Agreement is terminable by either party on short notice.

Pre-opening and technical services agreement:

  • $20k monthly retainer (excludes travel-related expenses)
  • Agreement is generally negotiated with an expectation that the relationship will migrate to a management agreement once the hotel is open.