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Jll Global Hotel Management Agreement Trends

JLL Global Hotel Management Agreement Trends: What You Need to Know

As the hospitality industry continues to evolve, so does the role of hotel management agreements. In recent years, there has been a shift towards more flexible agreements that cater to both owners and operators. JLL`s recent global hotel management agreement trends report sheds light on some of the key changes in this area.

Here are some key takeaways from JLL`s report on global hotel management agreements:

1. Shorter contract lengths: According to the report, there has been a trend towards shorter contract lengths in recent years. This allows owners to have more flexibility and control over their assets. However, it also means that operators need to be more nimble and adaptable in order to secure longer-term agreements.

2. Performance-based incentives: Another trend identified in the report is the use of performance-based incentives. This means that operators are incentivized to achieve specific performance targets, such as revenue or profit goals. This can be beneficial for both owners and operators, as it aligns their interests and helps to drive better results.

3. Revenue-sharing models: Revenue-sharing models are becoming more popular in hotel management agreements, particularly in the luxury segment. This allows owners to have a greater share of the revenue generated by the hotel, while operators can earn additional income through performance incentives.

4. Greater transparency: The report also notes that owners are demanding greater transparency in management agreements, particularly around fees and expenses. This can help to build trust between owners and operators, and ensure that both parties are getting a fair deal.

5. Increased use of technology: Finally, there is a growing focus on the use of technology in hotel management agreements. This includes the use of data analytics to optimize performance, as well as the integration of new technologies like artificial intelligence and automation.

Overall, these trends suggest that hotel management agreements are becoming more flexible and focused on driving results. As the industry continues to evolve, it will be interesting to see how owners and operators adapt to these changes and work together to create successful partnerships.

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