Video:

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 are a great way for deals to be made that both sides are happy with. In this TV show Petr Chitipakhovyan of CH Group explains how they can be used.

Custom management agreements for hospitality deals

I 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.

More expert videos are added to The Hospitality Channel every month. Keep an eye out for more great TV shows on custom management agreements, deal-making and related subjects.

 
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