Brick and Brains
Management contracts have become increasingly popular in the hotel industry over the past few years, with many of the leading hotel brands embracing the new culture. Peak Leisure Management can offer such an opportunity for the smaller, independent owner, previously limited to the multi-national operators. The financial synergy created by a partnership which separates the ownership and development of property assets from the management of the operation is now frequently reported by leading industry commentators.
The principle advantages of establishing this form of relationship are:
- Separates the ownership of the property from the operational management of the hotel (to use current jargon - a separation of bricks and brains)
- Provides a better balance of risks and rewards to each partner
- Promotes efficiencies in the use of the expertise within each partner organisation
- Allows a clear path for focused and profitable growth in each partner business