Evolution of Hotel Management Agreements and Rise of Alternative Agreements

Hala Matar Choufany | September 29, 2020

By Hala Matar Choufany and Ersin Yildirim Hotels are complicated investments and therefore selecting an appropriate hotel agreement for a property requires exhaustive research and investigation by an investor. The choice of an operator as well as the hotel operating agreement has a significant impact on the cashflow and the potential value of the property. Hotels and the hospitality market are constantly evolving as a result of brands consolidating, owner profiles changing, technology disruption, changing traveler behavior as well as hotel investment trends altering. The 2019 HVS Middle East Valuation Index highlighted declining hote...