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:

  • Ten year term with second ten year term upon mutual agreement
  • Base fee 2.5% of gross operating revenue
  • Incentive fee is negotiable for start ups. Generally tied to performance against the proformas utilized for financing. For stabilized hotels, the incentive fee 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 contingent upon a management agreement effective opening day