Hotel Managment

What is Hotel Management?

Did you know that large hotel chains such as Hilton and Marriott don't often operate their own properties? It is not a problem if you did not.  The structure of hotel management firms and the hospitality sector as a whole is drastically different from that of most other industries, and the majority of individuals working within the industry do not have a complete understanding of how everything operates.  Have no fear, because once you've finished reading this essay, you'll have all the knowledge you need.

What exactly do we mean when we state that 'businesses in the hospitality industry are structured differently than most other sectors'? It's possible that one party owns a certain property, another party manages that property, and a third company's brand flag is displayed on that site; however, these connections are typically kept under wraps. Because the purpose of this post is not to provide new information, we are going to exclude other stakeholders such as debt holders, asset managers, and special servicers (you're welcome!).

The vast majority of travellers will never have any reason to suspect that the front desk agent at the Hilton Garden Inn where they are staying is not truly employed by Hilton Worldwide. How is that even possible?

Because the world of hotel administration is so complicated, we will use this article to analyse the fundamental aspects of this sector of the hospitality business. We will delve into the specific functions that hotel management businesses do, as well as the ways in which they generate revenue and the key participants in the industry. You will finish this essay with a good understanding of the landscape of hotel management, which is useful whether you want to start your own hotel management firm, collaborate with an existing organisation, or begin a career working for an existing hotel management company.

What is Hotel Management?

The term "hotel management" refers to the management of all aspects of a hotel's operation, including its financial performance, guest services, housekeeping, food and beverage services, maintenance, and human resources. In addition, hotel management may also refer to the management of a hotel's physical property. Coordinating the different departments that make up a hotel in order to guarantee that everything operates smoothly and efficiently while also maintaining high levels of quality and customer satisfaction is a necessary component of the job.

The day-to-day operations of a hotel fall under the purview of the hotel manager, who is also tasked with devising and putting into action various plans designed to boost the hotel's overall performance and financial success. They must also be able to anticipate and adapt to the ever-evolving demands and preferences of their guests, as well as guarantee that the hotel continues to retain a positive reputation within the industry.

What are the main hotel management jobs?

The hospitality industry offers a diverse range of career opportunities, including the following:

• The General Manager is the overall head of the hotel and is responsible for the performance of the hotel, the administration of the hotel's finances, and ensuring that a high level of customer satisfaction is maintained.
  
• The Front Office Manager is in charge of overseeing the front desk, as well as the reservations and guest services departments.
  
• The Food and Beverage Manager is responsible for overseeing all aspects of the hotel's food and beverage operations, including banquets, banquet rooms, restaurants, and bars.
  
• The Executive Chef is the person in charge of the kitchen and is responsible for the design of the menu, the preparation of the food, and the quality control of the cuisine.
  
• The Housekeeping Manager is accountable for ensuring that all parts of the hotel, including the guest rooms and public areas, are kept clean and in order at all times.
  
• The Sales and Marketing Manager is in charge of creating business for the hotel through various advertising, sales, and marketing tactics. They are also responsible for presenting the hotel to potential guests.
  
• The Human Resources Manager is responsible for the hiring, training, and management of the workers at the hotel.
  
• The Event Coordinator is responsible for the planning and coordination of all events that take place at the hotel, including but not limited to conferences, weddings, and other social events.
  
• The Revenue Manager is responsible for doing data analysis to optimise pricing and occupancy rates in order to achieve maximum revenue.
• Maintaining the hotel's physical infrastructure and ensuring that all of the hotel's systems and equipment are operating correctly are the primary responsibilities of the Maintenance Manager.

Owners, Franchisors, and Management Companies

The operation of a hotel is not a simple job, and in order to perform it well, one needs a wide range of different abilities and resources. Many hotels use a variety of separate companies to manage the many operational components of the hotel in order to maximise performance, profitability, and the preferences of the owner. In general, hotels are classified as belonging to one of these four types of ownership:

Privately owned and operated: This business structure demands the owner to be actively involved in the day-to-day operations of the hotel. When a hotel is privately owned and controlled, the owner is often in charge of overseeing all operational parts of the business, including personnel hiring and management, asset upkeep, and the execution of various hotel marketing strategies. It's possible that the owner is a single person or a group of people.

Hotels that are leased operate differently than hotels that are privately owned and run in that the owners of leased hotels lease the physical asset of the hotel to a different firm, which is then responsible for running the hotel. The building's proprietor is just responsible for collecting rent and has no other involvement with the operation of the hotel.

Franchised: Owners that want a more hands-on approach and don't want to turn over their physical asset to someone else to operate could choose the franchise model as their business structure of choice. In exchange for access to perks (or constraints, depending on how you look at them), franchisors sign agreements with hotel brands in order to gain access to brand standards, marketing power, reservation systems, and design requirements. Typically, franchisors are responsible for the day-to-day operations, such as employing personnel and processing payroll, and they are required to pay a franchise fee to the associated brand. The Hampton brand, the Holiday Inn Express brand, and the Red Roof Inn brand are all examples of popular hotel brand franchises.

In a hotel that is managed, the owner of the hotel enters into a contract with a management company to have the company take over the day-to-day business operations of the hotel. The management company, in contrast to the franchise model, is responsible for all that is associated with the day-to-day operations of the business, including hiring, payroll, and marketing. Some of the hotels that are managed are branded, and in those cases, it is the responsibility of the management business to uphold the standards of the brand. In most cases, the contract between the brand and the owner is signed by the owner; nonetheless, owners frequently involve their management business in conversations regarding rebranding. Because they are paid a percentage of revenue and frequently receive bonuses based on the hotel's profitability, these management businesses place a strong emphasis on increasing RevPAR, NOI, and EBITDA.  'Corporate' hoteliers have a tendency to place a greater emphasis on analytical duties such as doing a SWOT Analysis and creating SMART Goals, whilst 'on property' personnel place a greater emphasis on strategies, day-to-day management, and service delivery.

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What Benefits Does a Hotel Management Company Provide?

We know that management corporations are responsible for the day-to-day operations of hotels on behalf of the owner, but what precisely does that entail? What exactly are hotel management companies responsible for? Depending on the particulars of the hotel, a hotel management business can do the following tasks:

Utilising a portal such as Hcareers, one may recruit potential employees and manage payroll.

Manage all of the operational areas, including the front desk, housekeeping, sales, and food and beverage.

Take care of billing and maintain ties with suppliers.

Make adjustments to the room pricing and hold contests.

Carry out preventative upkeep on the property, and make suggestions regarding any necessary capital expenditures.

Create spending plans, as well as annual and quarterly financial reports, for the owners.

Manage the hotel's online presence (including reviews and social media) and put marketing ideas into action.

In certain circumstances, renovations or extensions should be coordinated.

If the hotel is part of a chain, the brand may be responsible for taking care of some of these duties on its own. Typically, brands offer support in terms of marketing, onsite technology for both employees and guests, and guidelines for the furnishings and decor of a property. 

In most cases, the management business is not involved in significant decisions about the physical asset, and this is true regardless of the affiliation of the brand. When it comes to buying or selling properties, the decision is made by the hotel owner or ownership group, which is frequently an investment group in real estate.

Even though owners have to pay hotel management businesses for their services, it can end up saving them money in the long run to work with hotel management companies. Because hotel management corporations are professionals in hotel operations, they are frequently able to operate everyday operations more efficiently than private owner/managers - this is especially true in situations when the owner has limited experience working in the hotel industry.

How Do Hotel Management Companies Make Money?

The fee structure is one of the most essential topics that should be discussed between a hotel's owner and the management business when negotiating a contract for the management of the hotel. There are a number different methods that hotel management businesses might generate income for themselves, including charging an incentive charge, a base fee, and/or a portion of the hotel's gross revenue.

The cost structure for management companies can be very different from one property to the next. This is because the type of hotel, the services that are offered by the management firm, and the objectives of the owner all play a role. When hotel management businesses earn remuneration that is directly proportional to the success of the property, they have a financial incentive to ensure that the establishment is managed in the most effective manner possible.

Top 10 Hotel Management Companies

There’s no “typical” hotel management company; you can find management companies that specialize in certain brands, certain types of hotels, and certain geographic areas. Some management companies operate a handful of hotels; some operate hundreds. Let’s explore the top ten management companies in the United States in terms of number of guestrooms managed (guestroom and property counts in the US, source):

The largest hotel management company in the US is Plano, TX-based Aimbridge Hospitality, with a whopping 182,000+ guestrooms and 1,400+ hotels in their portfolio. Aimbridge merged with the former second-largest hotel management company, Interstate Hotels & Resorts, in 2019. This merger brought around 80,000 rooms and 500 properties into Aimbridge’s portfolio. Aimbridge’s hotels are mostly Marriott, Hilton, and Hyatt branded properties in US and Caribbean markets. Aimbridge is the largest operator of these brands in the world. Aimbridge recently launched the AIMClean program to ensure hotel staff are sufficiently trained in health and safety protocols. Aimbridge also provides renovation management, asset management, and consulting services.

Coming in at #2 is Hyatt Hotels. You may be thinking, “wait, how can Hyatt be on this list if other companies manage Hyatt properties too?” Hyatt actually manages about ? of all Hyatt properties, with 61,217 guestrooms and 372 hotels under corporate management. Hyatt is based in Chicago, IL, and their managed portfolio includes Hyatt brands in 65 countries worldwide, including boutique hotels in the Unbound Collection and Destination Hotels portfolios.

Like Hyatt, InterContinental Hotels Group (IHG) manages some of their own hotels - 301 properties and 57,804 guestrooms, to be exact. However, IHG takes an asset-light approach and only manages a small percentage of their 5,800+ hotels worldwide, which include brands like Crowne Plaza and Holiday Inn. IHG’s headquarters are in Denham, United Kingdom.

The fourth-largest hotel management company in the US is Highgate, which is the largest hotel management company in New York City. Highgate manages 10% of the hotel inventory in the Big Apple, and that’s also where their headquarters are. Highgate’s portfolio is made up of independent and branded hotels in major US markets like New York City, Miami, and San Francisco, with a total of 142 properties and 37,307 rooms.

Crescent Hotels & Resorts takes the #5 spot, with 28,137 guestrooms and 103 hotels. Crescent is based in Fairfax, VA, and they manage Marriott, Hyatt, IHG, and Hilton brands in upscale to luxury categories, plus independent hotels affiliated with soft brands, in the US and Canada. Crescent’s portfolio includes notable independent properties like the Mayfair Hotel in Los Angeles and the PGA National Resort in Palm Beach.

Similar to Crescent, HEI Hotels & Resorts also manages Marriott, Hilton, IHG, and independent properties in urban markets and vacation destinations across the US, with 23,900 rooms and 79 hotels in total. Norwalk, CT-based HEI manages a wide range of properties from select-service hotels to luxury resorts.

Headquartered in Boston, Pyramid Hotel Group, #7 on our list, has quite an international footprint. Pyramid operates full-service, select-service, and independent hotels in the US, the Caribbean, Ireland, and the UK. The company’s portfolio includes Marriott, Hilton, IHG, and Wyndham brands, with a total of 91 hotels and 23,493 guestrooms. Pyramid has expertise in brand transitions and conversions.

While some management companies work with a full spectrum of hotels, Island Hospitality Management’s portfolio of 177 hotels and 22,811 rooms include mostly select-service brands, such as Residence Inn and Homewood Suites. Island operates Hilton, Hyatt, IHG, and Marriott properties across the US, and the company is based in West Palm Beach, FL.

Crescent’s Fairfax, VA-based neighbor, Crestline Hotels & Resorts, takes the #9 position, with 118 hotels and 17,250 guestrooms in its portfolio. Crestline manages Hilton, Hyatt, IHG, and Marriott properties across the US that range from select-service hotels to high-end boutiques. Crestline has won numerous awards, including Marriott’s “Renovation of the Year” 3 times!

Another Texas-based management company, Remington operates primarily Hilton and Marriott properties, all located in the US, with their headquarters in Dallas. Remington’s portfolio includes 16,918 guestrooms and 86 hotels - all of which use contactless key systems. As you can see from this list, no two management companies are the same. Each one has their own strengths and advantages, which means owners can choose a management company that closely fits their needs.

How to Choose a Hotel Management Company

There is a wide range of variety among hotel management businesses in terms of the services they provide, the partnerships they maintain with brands, and the specific areas of competence they specialise in. You, as the owner, will want to form a partnership with a management business that possesses knowledge in relation to your particular hotel asset and the objectives you wish to achieve. Are you thinking about doing some work to the house? If this is the case, you should look for a management business that has previous expertise with renovations. Do you own a luxury resort that is completely independent? If this is the case, you probably do not want to collaborate with a management business whose sole properties in their portfolio are Residence Inns and Hamptons.

When evaluating hotel management companies, we advise paying attention to a few key areas, including the following:

Relationships with brands: Check to see if the management business is a favoured partner of the brand with which you wish to collaborate. Management organisations that have developed strong alliances with brands are in a position to assist new owners in navigating the branding process because they are familiar with the ins and outs of the brand standards, have a good working relationship with the key members of the brand's staff, and know the brand through and out.

The provision of services and expertise: Do you want the management business to take on more responsibilities, or do you only want them to handle the day-to-day operations? Additionally, certain management businesses provide services such as asset management, refurbishment management, and construction management. 

Composition of the Portfolio: Can you tell me about the different types of hotels that are represented in the management company's portfolio? If the hotels in a management business's portfolio are comparable to the hotel that you own (and are producing positive results! ), then you can feel confident that the management company will do a good job managing your hotel as well. Examine not only the hotel brands but also the geographic locations (urban versus rural, coastal versus midwestern), the ages of the properties (historic versus brand new), the target guest categories (business versus group versus leisure), and the property facilities (pools, golf courses, spas, restaurants, and so on).

The question of performance concerns whether or not the management organisation genuinely delivers results. Case studies and testimonials from past tenants of the buildings under a management company's care ought to be readily available upon request. You will have a better idea, based on these documents, of whether or not the management company is an appropriate fit for the objectives of your organisation.

When evaluating hotel management companies, we advise paying attention to a few key areas, including the following:

Relationships with brands: Check to see if the management business is a favoured partner of the brand with which you wish to collaborate. Management organisations that have developed strong alliances with brands are in a position to assist new owners in navigating the branding process because they are familiar with the ins and outs of the brand standards, have a good working relationship with the key members of the brand's staff, and know the brand through and out.

The provision of services and expertise: Do you want the management business to take on more responsibilities, or do you only want them to handle the day-to-day operations? Additionally, certain management businesses provide services such as asset management, refurbishment management, and construction management. 

Composition of the Portfolio: Can you tell me about the different types of hotels that are represented in the management company's portfolio? If the hotels in a management business's portfolio are comparable to the hotel that you own (and are producing positive results! ), then you can feel confident that the management company will do a good job managing your hotel as well. Examine not only the hotel brands but also the geographic locations (urban versus rural, coastal versus midwestern), the ages of the properties (historic versus brand new), the target guest categories (business versus group versus leisure), and the property facilities (pools, golf courses, spas, restaurants, and so on).

The question of performance concerns whether or not the management organisation genuinely delivers results. Case studies and testimonials from past tenants of the buildings under a management company's care ought to be readily available upon request. You will have a better idea, based on these documents, of whether or not the management company is an appropriate fit for the objectives of your organisation.

An Overview of Hotel Management Careers

Are you interested in pursuing a career in the hospitality industry? You might have recently graduated from a prestigious hotel school with a bachelor's degree and be wanting to reverse-engineer your way into well-paying management employment. On the other hand, you might be an industry veteran looking for professional development opportunities to help you break into corporate America and get off property. There are numerous enticing career paths available for professionals who wish to pursue a range of objectives, and one option is to work for a management company rather than for one of the major hotel chains such as Hilton or Marriott. Hotel management firms engage staff members to work on-property in all of the hotel's departments. In addition, hotel management companies hire corporate staff members who often work at their corporate headquarters.

Included in the jobs available at the corporate level of hotel management companies are:

• Integrate analysts and managers into your revenue management teams (the ability to centralise yield management is a significant part of a management company's value proposition).
• Designers of interior spaces
• Administrators of contractual obligations
• Analysts of the financial management system
• Accountants
• manager of information technology
• Managers of the human resource department
• Directors of regional operations or general managers of clusters
• Hotel managers, also known as GMs
• Management of restaurants and food service (typically for multiple locations)
• Professionals in the event management and sales industries

In contrast to personnel who work directly on the property, corporate staff members often supervise or work with many properties all at once. It is not unusual for business positions such as revenue managers, sales managers, or IT managers to have oversight responsibility for dozens of properties, some of which may be located in different parts of the country.

Be aware that corporate roles at hotel management companies are frequently very different from positions at the hotels that they manage if you are interested in working in the hotel industry because you want to create relationships with guests and appreciate the camaraderie that exists on the property. The corporate roles are typically carried out in an office setting and are reflective of the culture prevalent in such settings. Corporate employees often work traditional business hours and are given time off on holidays, whereas on-property staff work less regular schedules and often on holidays. This is one of the advantages of working for a corporation rather than working directly for a resort or hotel.

From event planning to the culinary arts, the hospitality business, and more specifically the hotel sector, provide a wide array of fulfilling career opportunities for anyone interested in entering the field.  There is always something new to learn in this dynamic and fast expanding area, regardless of whether you are new to the industry, a hospitality student at Cornell University, or even a Marriott International veteran of 20 years. This is true regardless of your level of experience in the company.

It doesn't matter if you're looking for hotel management firms to find your next business partner or to find your next profession; you'll definitely be able to locate one that meets all of your requirements. Do you still have questions that we haven't answered in the previous section? We'd be really interested to hear them!

What is the minimum salary in hotel management?

Although the starting compensation for an entry-level hotel manager is approximately $30,000, the average salary for a hotel management is approximately $50,000. There is no standard salary for hotel general managers because pay is contingent on factors such as geographic area, hotel class, and years of experience; however, some hotel general managers make more than $100,000 annually. 

What is the work of hotel management?

You are responsible for guiding all of the hotel's departments in the direction of achieving the objectives set forth by the hotel owner when you are employed as a hotel manager. A hotel manager is responsible for the hiring and supervision of personnel, the management of budgets, the processing of guest complaints, the compliance of the hotel with local rules, and the facilitation of collaboration between all hotel departments.

How many years is the hotel management course?

The Hospitality Management Certificate programme offered by eCornell can be completed in three months with approximately five hours of study per week. In comparison, a Bachelor of Science in Hotel Management from a conventional university can be earned in four years.

What is meant by hotel management?

The management of hotels is a distinct field that focuses on the business elements of running a hotel. Hotel management involves a wide range of talents, such as general business and marketing skills, people management and leadership skills, financial acumen, customer service skills, and a solid grasp of each hotel function, such as the front desk and housekeeping. These are just some of the skills that are required.

How difficult is hotel management?

A job in hotel management can be tough since it requires a wide array of talents, as well as patience, a desire to work long hours, and a passion for hospitality. Despite these requirements, hotel management can be very rewarding. The administration of hotels, on the other hand, is considered by many to be a rewarding profession since it provides opportunities to interact with a diverse range of people, to work in a variety of locations, and to make the stays of visitors truly unforgettable.

How can I become a hotel manager?

Both working one's way up through the ranks of a hotel to eventually become a manager and earning a degree in hotel management are two of the most popular ways to work one's way into a management position in a hotel. Although the majority of hotel managers have years of experience in the hospitality industry, some of them came to their current roles from other sorts of managerial jobs, such as those in the retail or military sectors.