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Topic - Management Fees

Management Fees
3D pie chart - Unsplash+

U.S. Hotel Management Company Compensation Slows in 2023 - By Robert Mandelbaum and Tim Dick

As U.S. lodging industry performance decelerated in 2023, so did the amount of fees paid by owners to their management companies. Preliminary results from CBRE's annual Trends in the Hotel Industry survey find that total hotel revenue growth slowed to 6.9% in 2023, while GOP inched up by 3.5%. As a result, total management fee payments rose by just 1.2% during the year, well below the double and triple-digit growth rates seen in the previous two years.

Management Fees
Bundles of dollar bills - Unsplash+

HVS Report - A New Approach to Hotel Management Fees - By Marcus R. Lee

In the ever-evolving hospitality industry, the question of how to effectively compensate hotel operators remains crucial. While the basic premise of paying managers for their management skills holds true, the prevalent incentive fee structures may no longer adequately align with market realities, particularly for owners.

Management Fees

Management Fees - A Growing Expense - By Robert Mandelbaum

An expense that has consistently grown at pace greater than the average of all other costs from 2010 through 2015 has been management fees. When growth of an expense item exceeds the overall average, owners typically become concerned. However, since management fees are designed to reward operators for positive performance, excessive growth in management fees is not necessarily unwelcome.

Miguel Rivera On Hotel Management Fees

If one starts with the basic premise that hotel managers should be paid for managing, the incentive management fee structures that are prevalent today largely miss the mark. They actually compensate managers based primarily on overall market performance, rather than their individual merits as managers.

FelCor Agrees to Acquire Two New York Hotels

FelCor Lodging Trust Incorporated (NYSE: FCH) announces it has entered into a binding purchase and sale agreement to acquire the fee-simple interests in two midtown Manhattan hotels, The Royalton and Morgans, for $140.0 million from Morgans Hotel Group Co.

Marriott International Announces Plan to Spin Off Timeshare Business and Reports Fourth Quarter 2010 Results

Marriott International, Inc. (NYSE: MAR), in addition to reporting its fourth quarter and full year 2010 results today, announced a plan to split the company’s businesses into two separate, publicly traded companies. Marriott International expects to spin off its timeshare operations and development business as a new independent company through a special tax-free dividend to Marriott International shareholders in late 2011.

Starwood Reports Fourth Quarter 2010 Results

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 10.1% (10.9% in constant dollars) compared to 2009. REVPAR for Starwood branded Same-Store Owned Hotels in North America increased 9.1% (8.1% in constant dollars).