management contracts
Incentive Management Fees Return With Recovery
Robert Mandelbaum and Tim Dick, Ph.D. | May 4, 2023
By Robert Mandelbaum and Tim Dick, Ph.D. Most management contracts include an incentive management fee in addition to the base management fee. The incentive fees are designed to make management more conscious of the bottom line since owners achieve their returns and pay their debts from profits, not revenue. Incentive management fees are earned by the operator once a designated profit threshold is achieved. Given the depressed performance of hotels during the 2020 industry downturn, unsurprisingly almost no hotel owners paid an incentive fee to their managers that year. Fortunately for U.S. hotel operators, incentive fees have risen con...
Marshall Hotels & Resorts Signs Five New-Build Hotels to Construction Pipeline and Adds Two Management Contracts
Marshall Hotels & Resorts, Inc. | January 30, 2017
SALISBURY, Md., January 30, 2017—Marshall Hotels & Resorts, a leading hotel management and services company that operates properties nationwide, today announced that the company has enjoyed a record 2016, signing six new build hotels and a stand-alone spa to its construction pipeline, as well as adding two new management contracts, in the second half of the year alone. The hotels are scheduled to come on-line following construction completion, bringing the company's portfolio to 60 hotel contracts year-to-date. "With eight properties in the pipeline and 14 new third-party hotel management agreements signed in the first half of...
