Deal-making through Common goals
Author: Alan O'Dea, James Kirk (yBC.tv)Categories: Deal-making
Tags: business development, commitment, common goals
Deal-making is like a marriageA good deal, number one is a good owner, that is an owner where we share exactly the same interest, that is a long term commitment. It’s almost like a marriage. We need to be aligned with the owners’ wishes. If somebody is in it for the short term and they want to turn the hotel around after five or six years, that is not necessarily something that we are interested in today, in general. Alignment with owners’ interests, alignment with owners’ debt commitments, so that we understand from the outset what the return needs to be. And we need to be very honest with the owners as well. Can we do it with the brand and the expertise that we have or should we leave it to somebody else to do it or should they go for a franchise agreement, which some of the other larger operators do. So alignment of interest is very important. If we are aligned, the hotel will operate, the quality will be there, the returns will be there for everybody and it will be a very balanced agreement in that respect. _________________________________________________________ If you found this video about deal-making interesting, why not watch more TV shows on The Hospitality Channel?