Hotel Owners Journal
The Hotel Owners’ Journal (“HOJ”) is HOFTEL’s quarterly newsletter. It only contains material specifically written for the group and it doesn’t have advertising or other “fluff”.
Within HOJ are news stories, articles about the industry with a specific focus on issues affecting hotel property investors such as brand mergers, management contract disputes, distribution developments, funding trends; profiles of new members and sponsors; stories about our members and their activities; regular updates on the latest results from the Leading Indicator Profiler; and frequent input from our sponsors. Below are some sample articles from the Hotel Owners’ Journal, which may be of interest to owners of managed and leased hotels and to franchisees.
The leased of your problems
As hotel investors have grown more sophisticated, and as more institutional investors have entered the sector, so the tenure of agreements between owners and operators have grown more complicated but also, to some degree more owner-friendly. Instead of having to choose between a classic “three and ten” management contract or a fixed lease, hotel property owners now have a range of intermediate solutions such as a turnover lease with or without a minimum guarantee.
Are you being disenfranchised?
Simon Allison looks at how the individual clauses within an a franchise agreement can ultimately leave owners unable to escape their contract. Unlike the US hotel market, where it’s a dominant form of hotel branding arrangement, the franchise agreement is still a relatively under-used form of contract in Europe. Only a handful of HOFTEL’s hotels, for example, are operated under franchises, as against a far larger number that are leased or run under management contracts.