Our philosophy regarding our compensation is fundamentally that we make every attempt to create a situation where our clients never question our motivations. We try to align our fee structure to the owner's financial goals.
Management Contracts
We prefer to divide Management Fees into two parts. The Base Management Fee is intended to cover our basic costs of providing our services. An Incentive Management Fee ties our profitability to the results of our efforts as shown in the profitability of the hotels we manage.
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Base Fee
This is usually a percentage of Total Revenues, or a minimum monthly amount, whichever is greater. The percentage ranges from two to four percent.
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Incentive Fee
Once the owner’s financial goals for the hotel are understood and achievable results are agreed to, an Incentive Management Fee is negotiated which relates to those goals.
Asset Management
Fees are also divided into two parts. The Base Asset Management Fee is intended to cover our basic costs of providing our services. An Incentive Asset Management Fee ties our profitability to the results of our efforts as shown in the profitability of the hotels we manage.
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Base Fee
This is usually a flat monthly amount based on the services provided.
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Incentive Fee
Once the owner’s financial goals for the hotel are understood and achievable results are agreed upon, an Incentive Asset Management Fee is negotiated which relates to those goals and our level of influence over management.
Consulting and Oversight Management Services
Consulting fees are negotiated on an individual basis depending on the services provided and the time involved. On certain projects, fixed fees are applied while others are on an hourly basis. Hourly fees vary with the level of staff experience necessary and the complexity of the assignment.
