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What hotel owners should expect -and demand- from an operator?

Updated: 3 days ago

Let’s not kid ourselves, brands need owners. This realisation has come to the market as ownership of hotels by the big flags has faded away as they have gone asset light, whilst the number of available brands has soared. With every sale and leaseback deal and every franchise signed, the global operators have pegged their fortunes not to the values of their assets, but the value of their brand and the management and license fees they generate.

As of January 2025, Marriott International, the largest company in the sector, has a market capitalisation of $81.63bn, despite only owning a tiny, vanishing fragment of the hotels in their portfolio of 1.5 million rooms (at an average of 164.8 rooms per hotel). Marriott is not alone in this, with most major groups adopting a similar policy.


The company forecasts net rooms growth at a solid three-year CAGR of 5 to 5.5% from year-end 2022 to year-end 2025. To put that into perspective, adding 5.5% to 1,500,000 rooms at an average of 164.8 rooms per hotels, means they would need to sign over 500 hotels per annum.



All that growth, on which its share price relies, comes from something beyond its control: hotel owners. The days of being in awe of the brands are long gone. As an owner, you have what they want and, as their success grows, so too do the number of brands competing for your property. A beauty parade for your new project could feature tens of possible brands, all of whom need you to make their business plans work.


You should expect uncompromising performance and accountability from an operator. If you engage a well-known, expensive brand, it is important to remember that you’re not just paying for a name over the door; you’re investing in expertise, brand strength, and operational excellence.



You should be thinking not only in terms of filling beds, but in the profitability and value enhancement of your asset. The hotel itself should be at the heart of each stakeholder’s priority.


Your demands:


  1. Financial Performance – You should be given clear, data-driven strategies to maximise revenue, control costs, and deliver strong GOP margins. The operator must be proactive in optimising asset value and, where needed, be willing to work with a strong independent asset manager.

  2. Brand Execution – There must be consistent delivery of the brand promise, ensuring that service, design, and guest experience align with the luxury positioning.

  3. Operational Transparency – There should be no ambiguity in how your asset is managed; insist on open-book reporting, detailed financial statements, and regular performance reviews.

  4. Sales & Marketing Excellence – A well-defined commercial strategy leveraging global distribution, loyalty programmes and digital marketing to drive ADR and occupancy.

  5. Asset Protection & Maintenance – A long-term approach to asset preservation, including capital expenditure planning and compliance with brand standards.

  6. Talent Management – Recruitment and retention of top-tier leadership, ensuring a strong service culture and operational efficiency.

  7. Adaptability & Market Responsiveness – Agility in responding to market shifts, economic downturns, and evolving guest expectations.

  8. Alignment of Interests – The operator must act in the owner’s best interest, not just the brand’ Performance incentives should be structured around clear KPIs that benefit ownership.


Fundamentally, owners must be curious; curious about the fees being paid; the quality of services provided in return for those fees; how performance will be achieved and monitored; and whether the brand is best placed to provide all operational services, or if a third-party operator will provide a better option?



When an operator is not meeting these expectations, it’s time to hold them accountable. Your hotel is a valuable business asset—not just a flagship for a brand. You may be one of tens, hundreds or thousands, but if you’re not receiving tailored, individual attention, it’s time for a new operator.


If you’d like more attention from your operator, or you’re wondering whether you need one at all, the team will be at this year’s IHIF. Please reach out to info@globalassetsolutions.com to schedule a meeting.

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