What is the meaning / definition of Hotel Management Company?

A company that runs a hotel on behalf of the owner for a fee. This is done when a hotel´s owner has no interest in running a hotel due to the lack of experience or time. Hotel management companies can either be small and independent or large mega-corporations that run multiple hotels across the country or world.

The fee for may be either a percentage of the gross profit or a monthly or yearly fixed fee depending on the contract. The most common practice for a hotel management company is to charge 3% of the gross revenue, but can very between different management companies.

The services provided by a hotel management company will depend on the type of contract with a hotel and how hands-off a hotel owner wants to be. A hotel management company can run a few departments or run the entire establishment of a hotel. Most likely, the hotel management company will run most, if not all, of a hotel.

See also:

Hotel Services

  • Hotel Management Services