Some undertakings are commonplace in U.S. management contracts
but don't always translate effectively to hotels operated in
other markets.
Who should assess the value of a brand operator? Guests,
shareholders, owners or some other constituency?
More commentary and analysis need to focus on the value to hotel
owners, especially owners of international hotels entering into
long-term management contracts with U.S.-based brand operators.
Once they get past the well-crafted puffery during the romance
phase, it is imperative for owners to evaluate how their contracts
actually align interests during what they anticipate will be a long
and happy marriage. What international owners believe they are
getting from their brand operators may not actually have been
translated correctly in the language of their agreements.
