Experience Eclipse : Owners Facts

Facts for Owners and Developers of Hotels

• 7 out of 10 Hotels in Asia and the MENA operate with no association with an international Hotel Group
• 6 out of 10 Hotels in Asia and the MENA operate below their profit potential
• 80% of "branded" Hotels pay operators more than 6% of Revenue in fees, if the Hotel is profitable or not
• 7 out of 10 "unbranded" Hotels in Asia are not distributed via GDS systems worldwide
• only 28% of Hotel Management Agreements in Asia include an Operator guarantee
• only 42% of Management Agreements in Asia include a Performance guarantee
  • out of this over 90% of the Agreements use 80% of achieved budget as guarantee
  • less than 2% use achievement of Budget or better as guarantee
• 80% of Management contracts use royalty, marketing and reservations fees to the Operator
• 60% of Management Agreements forbid the Owner of any involvement in the Operation

NO International Hotel Management Agreement includes a Money Back Guarantee?

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