1, third-party hotel management meaning

The third-party hotel management model is a hotel management model that has gradually emerged in the domestic hospitality industry in recent years. It involves three different entities: hotel owners, selected international or local hotel brands, and independent third-party hotel management companies. The owner obtains the concession of a hotel brand, and then the owner signs a hotel management contract with a third party hotel management company. The hotel owner pays the brand owner the brand fee, and the third-party hotel management company charges the management fee in accordance with the management contract.

2, "third-party management" is the best combination of hotel internationalization and localization

The biggest advantage of third-party management is to separate the brand and management, give owners a lot of autonomy, according to the operation of the selection and replacement of brands, more flexibility, the international and local integration, the comprehensive utilization of various resource combinations, Accelerate the internationalization of China's hotel industry.

3, "third-party management" to help owners set up wine management team

Many domestic hotels are actually part of the real estate, but the hotel is not the real estate developer's strengths, for which third-party hotel management can provide more professional management and management services, third-party management intervention in the benign operation At the same time, the hotel left a valuable operating mechanism and a solid management team, a few years later, such as the owner-owned hotel, the mature system and teamwork is the core strength of the operation.

4, "third-party management" development in line with the needs of the development of the domestic market

Due to the conflict of interest between the owner and the brand, it is also disadvantageous to entrust the operation of the hotel solely to the brand. In the opinion of the owner, the third-party hotel management company has become an intermediary and a negotiation platform to alleviate these conflicts of interest.

5, "third-party management" Hotel Group, an important brand management mode of output

In accordance with the development of international hotel group experience, the hotel brand growth and development to a certain extent large and large, with the help of third-party hotel management companies continue to expand. Domestic hotel brands are at a stage of growth. Cooperating with third-party management companies can strengthen their brand output and management and help boost the international brand of local hotel brands.

6, a more rational phenomenon of hotel investment, and promote "third-party management" development

Future hotel investors will pay more attention to the hotel's own investment income issues. At this time, the advantages of third-party hotel management that pay more attention to the investment returns of the owners are revealed. The hotel owners need a management team that is consistent with the ultimate goal instead of an international management team that only focuses on the development and reputation of the hotel brand.

7, high international hotel brand human resource costs, is the heart of hotel investors

International hotel brand labor costs will account for about 35% of hotel revenue, rather than the international hotel brand labor costs only account for 27% -30% of hotel revenue.

8, brand franchising have been opening up, "third-party management," broad prospects for development

More and more hotel owners understand that hanging up the brand of international hotel brands and hiring international hotel management teams to operate and manage are mostly based on the principle of "doing wedding clothes for others". They have all started to choose "brand franchising third party management "Mode.

Business Model

Eadry Hotel Management Group

Eadry Hotel Management Group

Eadry Hotel Management Group

Disadvantages on Brand Full Management

Eadry Hotel Management Group

> Brand’s primary goal is to increase brand equity through marketing and distribution where as owner’s primary goal is to increase bottom line and drive asset value

> Brand priorities not always consistent with owner objective

> Brand often requests Owner to spend $$ to meet new Brand standards

Third Party Management Advantage

Eadry Hotel Management Group

> Permits greater owner involvement in decision making

> Management company monitors brand fees and costs

> Shorter management agreement term compared to brands

> Negotiating leverage with brands for PIP’s, brand standards, etc

> On future projects Owner can continue to work through Manager’s common platform to source new brands