A hotel management agreement should not only define who operates the property. It should also explain how the manager is paid, how reimbursement expenses are controlled, how guest satisfaction is protected, and how the owner avoids structural risks that can reduce control over the asset. In Part 3 of this hotel management agreement series, Randy…
A smart hotel management agreement should do more than appoint a manager. It should create accountability, require useful reporting, establish performance standards, and give the owner practical termination rights when the manager does not meet agreed expectations. In Part 2 of this hotel management agreement series, Randy Efron of Skylatus Property Capital explains how hotel…
A hotel management agreement is one of the most important documents a hotel owner will negotiate. The manager may run the property day to day, but the owner still needs the right approval rights and safeguards to protect the value of the real estate. In Part 1 of this hotel management agreement series, Randy Efron…
Key money is a unique form of capital in hospitality real estate — funds a hotel franchisor or management company provides directly to a hotel owner to help facilitate a project. Randy Efron of Skylatus Property Capital explains how key money fits into the capital stack, why franchisors and managers offer it, and what terms…
Hotel asset management is the ownership-level oversight function that helps protect investor capital, monitor hotel performance, and hold the hotel management company accountable to the business plan. In hospitality real estate, the hotel owner, hotel management company, franchisor, and asset manager may all play important but different roles. The hotel manager runs the day-to-day operation.…
Hotel management is one of the most important decisions a hotel owner makes. Because hotels are operationally intensive businesses, the party responsible for day-to-day operations can directly influence revenue, guest experience, lender confidence, and property value. Randy Efron of Skylatus Property Capital explains that when a hotel owner purchases a hotel, they cannot simply walk…
A hotel franchise allows an independent hotel owner to operate under a recognized brand name. For hospitality real estate investors, the franchisor can play a major role in demand generation, reservations, loyalty programs, marketing, and overall property performance. Randy Efron of Skylatus Property Capital explains that one of the most surprising facts in hospitality real…
Hotels are commercial real estate assets, but they are also active operating businesses. That makes them fundamentally different from many multifamily, office, retail, and industrial properties where contractual leases drive income. Randy Efron of Skylatus Property Capital identifies this as one of the key differences between hotels and other types of real estate. A hotel’s…
Hotels are often grouped with other commercial real estate asset classes, but they behave very differently from multifamily, office, retail, and industrial properties. One of the biggest reasons is simple: hotels operate on nightly leases. According to Randy Efron of Skylatus Property Capital, this is one of the key differences that sets hospitality apart from…