Some investors wish to build and manage the hotel(s) themselves, whilst others wish to outsource management to a professional local or international hotel management company.
JAKARTA – As wealth spreads to all corners of the Indonesian archipelago, increasing numbers of entrepreneurs are considering the burgeoning hotel industry as a place to deploy capital with long term cash flow in mind. Some investors wish to build and manage the hotel(s) themselves, whilst others wish to outsource management to a professional local or international hotel management company.
For first time hotel owners that wish to outsource management, there is a lack of information, particularly in Bahasa Indonesia, that helps demystify the peculiarities of the hotel management agreement. ‘Unlocking the Mystery of Hotel Management Agreements’, released by leading hospitality consulting firm Horwath HTL, addresses some of the key commercial terms that form the backbone of a typical hotel management agreement.
Commenting on the release, Horwath HTL’s Matt Gebbie said “we are frequently asked by clients to assist them in their negotiations with both domestic and international hotel management companies. Hotel management agreements are complex and regulate a long term relationship between hotel or resort owner and manager. It is hoped that this article will serve as an introductory guide to Indonesian investors interested in engaging a management company to operate their prized hotel asset.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
