Topic - Management Fees

Management Fees

For Hotel Owners Incentive Management Fees Return with Recovery - By Robert Mandelbaum and Tim Dick

Given the depressed performance of hotels during the 2020 industry downturn, unsurprisingly almost no hotel owners paid an incentive fee to their managers that year. Fortunately for U.S. hotel operators, incentive fees have risen concurrent with the recovery of hotel profits. In 2022 incentive payment levels began to return to pre-COVID levels.

2023-05-01

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Management Fees

Management Fees - A Growing Expense - By Robert Mandelbaum

An expense that has consistently grown at pace greater than the average of all other costs from 2010 through 2015 has been management fees. When growth of an expense item exceeds the overall average, owners typically become concerned. However, since management fees are designed to reward operators for positive performance, excessive growth in management fees is not necessarily unwelcome.

2017-07-13

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Management Fees

Baker & McKenzie's Views on Why the Manager's Fee is Based on a Hotel's Revenue and Profit

It is difficult to identify another service provider who calculates its fees this way. Many service providers traditionally charge on a time cost basis but these days, fixed fees, retainers and incentivised arrangements are increasingly the norm.

2015-07-28

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Miguel Rivera On Hotel Management Fees

If one starts with the basic premise that hotel managers should be paid for managing, the incentive management fee structures that are prevalent today largely miss the mark. They actually compensate managers based primarily on overall market performance, rather than their individual merits as managers.

2011-09-19

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FelCor Agrees to Acquire Two New York Hotels

FelCor Lodging Trust Incorporated (NYSE: FCH) announces it has entered into a binding purchase and sale agreement to acquire the fee-simple interests in two midtown Manhattan hotels, The Royalton and Morgans, for $140.0 million from Morgans Hotel Group Co.

2011-04-05

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Morgans Hotel Group Announces Hard Rock Joint Venture Settlement Agreement

Company eliminates approximately $160 million from its adjusted debt

2011-03-02

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Marriott International Announces Plan to Spin Off Timeshare Business and Reports Fourth Quarter 2010 Results

Marriott International, Inc. (NYSE: MAR), in addition to reporting its fourth quarter and full year 2010 results today, announced a plan to split the company’s businesses into two separate, publicly traded companies. Marriott International expects to spin off its timeshare operations and development business as a new independent company through a special tax-free dividend to Marriott International shareholders in late 2011.

2011-02-15

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Starwood Reports Fourth Quarter 2010 Results

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 10.1% (10.9% in constant dollars) compared to 2009. REVPAR for Starwood branded Same-Store Owned Hotels in North America increased 9.1% (8.1% in constant dollars).

2011-02-03

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Great Wolf Resorts Announces License and Management Agreement for New Great Wolf Lodge in Garden Grove, CA

Great Wolf Resorts, Inc.® (NASDAQ: WOLF) announced that it has signed License and Management Agreements related to the development of a new 600-suite Great Wolf Lodge® resort in Garden Grove, California’s world famous International West Resort.

2010-06-28

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Morgans Hotel Group Reports First Quarter 2010 Results

Revenue per available room (RevPAR) for System-Wide Comparable Hotels increased by 11.6%, or 10.1% in constant dollars, in the first quarter of 2010 from the comparable period in 2009.

2010-05-06

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