By Hala Matar Choufany
In the discussion with Bani Haddad, Hala Matar Choufany discusses the change in traveler behaviour and experiences as the new trend. Hala Matar Choufany also reviews the maturity levels of Middle East countries. The discussion leads to the topic of rising third-party hotel management contracts, where Bani Haddad explains the value proposition of third-party management companies. Some of the benefits of working with a third-party management company are the avoidance of corporate expense structures, which leads to lower costs and a better bottom line, and simple and flexible contractual terms. Although, the most important factor is the priority given to the owner’s interest. Traditional management agreements from brands are complicated with hidden fees that only appear after the start of the hotel operation.
Hala Matar Choufany finishes the discussion by distinguishing three types of investors and their interest in third-party management companies and points out the rising acceptance of such operations. While operating under two agreements is complicated for many due to lacking knowledge and high-risk aversion, there is an increasing acceptance in the Middle East region, which will lead to a rising number of such operation type.
For the full video discussion, please press here!