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Should You Use Hotel Management Companies for Your Hotel?

Yes, using a good hotel management company has proven to be more beneficial than not using one at all. However, you also have to understand that choosing the right hotel management company is more crucial because it can make or break your hotel.

A good hotel management company will indeed make your hotel one of the best places to stay in the area, while a poor one ensures negative reviews and might actively drive guests away. Whether you already have a hotel or you are just considering acquiring or building one, a hotel management company can ensure your success.

The hotel industry deals with all types of guest accommodation. In fact, the hotel industry not only relates to luxury hotels and resorts, but it also includes overnight accommodation in guesthouses, motels, inns, and hostels as short-term types of accommodation.

The main purpose of hotels is to provide guest travellers with food, drinks, services, and shelter whilst they are away from home.

To be able to provide the above services exceptionally, it is advisable you consider a hotel management company that typically deals with a wide range of hotels whether independent or branded, in diverse locations and within various markets.

When seeking to work with a hotel management company, it is imperative you deal with experts in the industry by choosing a company that will take the time to understand the ins and outs of your hotel. This way, they can identify sources of revenue and how to diversify them.

Things to Look for in a Hotel Management Company

In order to manage a hotel successfully, you will need a certain set of skills as well as managerial knowledge. If you feel you don’t have these skills or would want to run your Hotel expressly, and then seek the expertise of a hotel management company that will ensure your success. But how do you make sure that you’re getting a company you can rely on? Here’s what you need to look for.

  1. What Kinds of Hotels Does the Company Manage?

Although many hotel management companies tend to manage a wide variety of hotels, some will specialize in a certain type or types. When deciding to employ their services, you will want to make sure that the firm you are looking at actually manages the type of hotel you own or want to own.

Is your hotel a high class urban establishment? Is it branded? Is it Independent? Does it offer only limited services or is it full-service? Is it in the city or in a rural area? How a small hotel in a rural location is managed will be very different from how a huge hotel in the centre of a city is managed.

  1. Do they Provide the Services that You Need?

Have it in mind that not every management company will provide the same services, so you have to ensure that you are working with one that does provide the specific services you are after, whether that is managing renovations, taking over maintenance, providing consulting services, managing the assets, providing staff, etc.

It’s also a imperative to look at what the companies you are considering don’t offer, so you know whether or not you’ll have access to services that you might not need right now but might want in the future.

  1. Do They Respond in a Timely Manner?

Note that choosing a management company can be a daunting task that can involve examination of a wide range of key factors. One of the most important is responsiveness.  The hospitality industry is an industry extensively dependent on customer service and you’ll want a company that not only understands this, but practices what they preach.

This is a wonderful way to easily weed out the companies that don’t have what it takes to solve your larger challenges and take your business to the next level. When contacting prospective hotel management firms, expect prompt replies and seek discovery meetings that accommodate your schedule.

  1. Do They Let You See Case Studies?

Can they offer you case studies to prove that they are capable of improving the profits at your hotel? They should be able to show you how they have improved the workload at other hotels before claiming that they can help you reach your goals.

  1. How Much Input Do They Let You Have?

Also note that some owners will want the management company to handle anything without asking the owner for any approval. Others will still want to have a hand in who gets hired, fired, and what other big changes are made.

  1. Do They Have Other Happy Customers?

Before choosing any hotel management company, you have to make sure that the people who are currently working with them are happy. If they’re not happy and potentially trying to find other firms to work with, it might be in your best interest to look elsewhere.

  1. Do they Feel like a Good Fit? Do you Like their Corporate Personality?

Does the hotel management company seem like they would be a good fit with your corporate personality? While this is, at the end of the day, a business deal, you still want to be working closely with people that you like and can rely on.

It is very bad to just assume that even if you don’t really trust the people in the firm, that you will be able to rely on the firm as a whole. Always learn to follow your instincts. If a hotel management company provides all of the services you need but doesn’t feel quite right, it’s probably best to look elsewhere.

  1. How do They Staff Their Other Properties?

Have it in mind that Labour is going to be one of your biggest costs, so you have to make sure that their staffing tendencies align with what you think is appropriate for your hotel. Note that some management firms will over-staff the hotel in order to make more money off of you, while others will provide not enough staffing and your hotel will always be undermanned.

You want to look for a management firm that knows how to match up the staffing with the amount of business your hotel gets. It simply means you’ll never have extra people at the front desk or extra maids that you have to pay.

  1. What are Their Margins Like for the Hotels they Currently Manage?

When you investigate the accounts they current have, are they providing those clients with good margins? Do they appear to be making money for their other clients? Are the hotels being run efficiently? Or are there too many managers on site?

  1. How Much Attention Do They Given Their Team?

Do they staff your hotel? Or essentially let it run itself Note that this might work well for some hotels, but is not advisable for others that need a lot of hands-on guidance. You want to consider what is right for your hotel and whether or not the management firm is capable of giving you personalized attention if you need it.


The expertise and tools provided by the right hotel management company can be priceless to hotels. Picking the right hotel management company can be a daunting task as there are several factors to take into consideration. By leveraging a hotel management company to help plan and strategize, you will be able to take advantage of invaluable benefits and ensure great results for your hotel.