A Review On Hotel Operation Engagements In Turkey

Due to the increase of brand loyalty by consumers, the leading trend amongst global and big chain hotel business owners has been to turn over the running of their hotel operations. Rather than acquiring property and operating the hotel, global and big chain hotel owners prefer entering into (i) franchise/management, (ii) the build, operate and transfer (the "BOT") or (iii) lease agreements to carry out their hotel operations.

The choice of model depends on the scale of investment by the hotel chain (the "Hotel Chain"). Most of the big chains do not prefer making long-term investments such as purchasing properties and operating the same in foreign countries; they prefer to enter into engagements such as lease, management or franchise agreements in order to operate a hotel business. The main reason for not operating a hotel as an owner is to minimize the exit risks from the relevant country.