There is nothing more important to the value and financial success of your hotel than selecting the right operator, and getting a management agreement with reasonable terms.
At a recent meeting in Los Angeles, my partner and Hotel Lawyer Robert E. Braun of JMBM's Global Hospitality Group® moderated a panel of hotel industry leaders on some of the key issues owners should consider in selecting a new hotel operator.
The panelists included Patrick Bajdek of Carlson Rezidor Hotel Group, Craig Mance, from Hilton Hotels, Rich Musgrove from HotelAVE, Larry Somma of Hyatt Hotels, and Sam Winterbottom from Grubb & Ellis. Below, Bob gives his top 5 takeaways from the panel. . . Selecting the right hotel operator by Robert E. Braun | Hotel Lawyer 1. What financial assistance do brands provide? Larry Somma commented that banks aren't lending, especially on the construction side, and that since Hyatt manages and runs hotels, it has balance sheet strength that allows them to offer a variety of different financing solutions--senior and mezz lender, key money, and other options, each addressing the specific project needs.
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