Operator Search & Selection
This is all about getting the right people to partner with to manage the establishment that you have built and a lot of the contracts are long-term relationships from 5 to 25 years which for many people would be probably equated to a marriage as such one needs to make sure that they choose the right organisation or the right management company to partner with.
Operator search and selection has several stages including gaining an understanding of what the hotel owners want, development of terms of agreement or a term sheet where these are the criteria of the owners in order to present the same to the investors, developing the investor memorandum and using that to source the partners that have been defined from the discussion with the owners then shortlisting them and presenting them to the owners for the final decision making.
Once the final decision has been made as to which partner to go with, the final term sheet is created and then there’s support provided with a review of the management contract to make sure that it is favourable for both sides.
One of the key elements of our role in the operator search and select is to save the owners a lot of misery in the future where we look at negotiating terms from graduated incentive fees, the base management fees and a key area that we look at is the opt-out clauses that are there in order to allow easier terms or more suitable terms in the eventuality that the owner decides to end a contract