Custom management agreements leave room for development
Author: Petr Chitipakhovyan, James Kirk (yBC.tv)Categories: Deal-making, Investment
Tags: CH Group, custom management agreement, Marriott
Custom management agreements for hospitality dealsI like to say that first of all never be so conservative and never stay on the same position, life is changing, and even agreements which has been done 20 years ago or 10 years ago or 20 years ahead, they can be changed as well. And we are doing that with our partners, this custom management agreement, after that we create a special enterprise lease agreement which is something in between. And now we agreed with Marriott to flip our managed hotel to franchising, because of that we create our own company. And because we have enough experience to work with Marriott we have now ability to manage our hotels and the franchising. I think that it’s necessary to have a certain period of time because it’s a question of proper calculation, brand as well invest money to get these hotels running. And 15/20 years, it’s okay. But it has to be good connection with brand that if you would like to discuss something later you have to have your partner who are willing to do that as well if circumstances really changed.
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