When you think about hotel management you are likely thinking about the General Manager, Hotel Manager, Director of Sales, and other leaders within a hotel that run it daily. You are right, they are running the hotel, but who do they work for?
Today, I will tell you about hotel management companies. I will answer two main questions:
What is a hotel management company?
What do the hotel management companies do?
Hotel management companies
The concept of hotel management started in the 1950s when big-name brands like Hilton and InterContinental have started to expand internationally. Hilton and InterContinental would buy a building, make a hotel out of it and hire a local company to run the daily operations. The brands would play the role of the hotel owner that collects the profits.
This created hotel management companies that today specialise in running branded hotels under brands across all levels. Almost every branded hotel today has this or similar management structure.
The practice of hiring a hotel management company became so popular because it divided the responsibilities of running a hotel. It splits the risks between several companies.