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Who Owns Hotels? โ€“ Hotel Owners and Hotel Management Companies

The way hotels are owned, managed and structured is complicated and unique to the hospitality industry.


The management structure of a hotel plays an important role in your employment, legally speaking. But it is also important to understand because you need to understand who your ultimate boss is.


This article breaks down for you the three different stakeholders involved in the ownership and management of a hotel, how they work together, and a real-life example puts it all into perspective.


The 3 stakeholders in hotel ownership and management

  1. Owner

  2. Brand manager

  3. Management company


These are the three key stakeholders in the ownership and management of a hotel, however, the divide is not always between three of them. Letโ€™s look into each one of these and see how they work together.


Owner

This would be someone that literally owns the physical building of the hotel. They own the physical asset and are fully responsible for maintaining it. The owner is the one that collects the profit from the hotel.


This is the ultimate boss and the one that reaps most of the financial rewards, but also bears the most amount of risk.


Brand manager

The brand manager is the company that owns the brand that is the face of the hotel. They provide standards for the hotel team and the owner to follow. Standards vary from th