Hotel Management Company Selection
The wrong management company can undo years of good ownership decisions. The right one can transform an underperforming asset.
Selecting a hotel management company is one of the most consequential decisions a hotel owner makes — and one of the hardest to evaluate objectively, since management companies are naturally skilled at presenting themselves well. Boutique Hotel Advisors (BHA) provides independent management company selection services for owners choosing a new operator, replacing an underperforming one, or opening a new hotel for the first time.
BHA’s staff are experienced hoteliers who understand management companies from the inside — operations, sales, marketing, and contract structure. On behalf of ownership, we objectively evaluate qualifications, references, capabilities, fee structures, and performance track records so the decision is based on evidence, not presentation quality.
Our Services
- Development of a management company RFP (request for proposal) tailored to the property and ownership objectives
- Identification and outreach to qualified candidate management companies
- Evaluation of candidate qualifications, references, and comparable property performance
- Comparison of proposed management fee structures, incentive fees, and contract terms across candidates
- Facilitation of management company presentations and interviews
- Negotiation support for the final management agreement
- Final recommendation with supporting rationale for ownership decision-making
Our Process
- Define selection criteria. We work with ownership to establish what matters most — brand affiliation compatibility, boutique or independent hotel expertise, geographic presence, fee structure, or specific operational capabilities.
- Develop the RFP. We prepare a detailed request for proposal outlining the property, ownership objectives, and information required from candidates.
- Identify and solicit candidates. We identify management companies with relevant experience and track records for the property type and market, and manage the RFP process.
- Evaluate proposals. We objectively compare candidates on qualifications, references, comparable property performance, proposed fee structures, and contract terms.
- Facilitate interviews. We coordinate and participate in management company presentations, asking the questions ownership needs answered but may not know to ask.
- Support negotiation. Once a preferred candidate is selected, we support ownership through management agreement negotiation to secure favorable terms and performance protections.
Why BHA
- Staff with direct hotel operations, sales, and marketing experience — not just contract review
- 500+ hotel projects across 100+ countries, including management company selection and negotiation
- Independent — BHA has no financial relationship with any management company, so recommendations are unbiased
- Systematic, RFP-based approach rather than relying on existing relationships or reputation alone
- Experience across boutique, lifestyle, luxury, independent, and commercial hotel management structures
FAQ
How do I choose a hotel management company?
Choosing a hotel management company should be based on documented evidence: verified references, comparable property performance data, fee structure analysis, and contract terms — not solely on brand reputation or a compelling presentation. An RFP-based selection process, run by an independent advisor, produces a more defensible and better-informed decision.
What is a hotel management RFP?
A hotel management RFP (request for proposal) is a structured document sent to candidate management companies outlining the property, ownership objectives, and the information required to evaluate each candidate on a consistent basis — typically including proposed fees, staffing plans, sales and marketing approach, and references.
What should I look for in a management company's track record?
Look beyond total portfolio size to comparable property performance: how has the company performed at properties similar in size, market, and positioning to yours? Reference checks with current and former clients, not just the references the company provides, are essential.
How are hotel management fees structured?
Hotel management agreements typically include a base management fee (a percentage of gross revenue) and an incentive management fee (a percentage of gross operating profit or net operating income above a threshold). Fee structures, definitions, and calculation methods vary significantly between companies and should be compared carefully.
How long does the management company selection process take?
A thorough RFP-based selection process, from defining criteria through final negotiation, typically takes six to twelve weeks depending on the number of candidates considered and the complexity of contract negotiations.