JAGRUTI PANWALA
AAHOA Chairwoman (2019-2020)
Bringing on management companies to help us run our hotels is nothing new in our industry. In my own experience, the partnerships we have with these companies are just as important to the success of our businesses as our connections to brand and vendor representatives, if not more so. Management companies provide long-term value to our businesses by helping us streamline our day to day operations and implement the best business practices we can.
Having a good management company on board can truly be the difference between a successful business and one that struggles. Each company comes with its own unique process for making your hotel function with efficiency and sustainability. They can handle as much or as little as you want, depending on the role you want them to play. For new hoteliers, this is an especially important tool. Management companies typically have years of experience running hotels and can offer great assistance to hoteliers who are just starting out. Meaning if you want them to have a hand in everything from staffing, bookkeeping, and implementing property protocol, they can navigate these steps alongside you.
But not all third-party management companies offer the same value and not all of them will be the right fit. Doing your research is key to finding the company that will best fit the needs of your business as well as the environment you want to create. It’s important to find out if there are hotels similar to yours in the company’s portfolio and how those properties are doing both financially and reputationally. Getting an understanding of their past and current performances can give you an idea what your business might look like under their management.
Regardless of experience, it’s important for all hoteliers to never underestimate the importance of having expert advice on hand when you’re making a deal with one of these companies. Having a lawyer review final contracts before signing can ensure you’re getting the best deal possible and won’t be running into any trouble down the line.
I encourage all AAHOA Members who are in the market for a management company to not shy away from shopping around for a while. As American small businesses across all sectors continue to grow and expand, third-party management companies are becoming even more common, meaning we all have more options at our disposal. Look for companies that are actively implementing the newest technology, staff training methods, and proven management strategies that have led businesses to success. Our industry is rapidly evolving and it’s important that our management companies evolve with it so our properties can stay ahead of the competition.
