The Asset Management Conversation Every Hotel Owner Should Have

Most hotel owners think about management fees. They evaluate management companies on their fee structure — the base management fee, the incentive fee, the marketing levy. This is the wrong conversation.

The right question is: what is my total cost of underperformance? A hotel managed at 68% occupancy and £95 ADR, when the competitive set is running at 72% and £102, is leaving approximately £800 per room per year on the table.

A management fee of 3% on revenues looks very different once you have sized the upside. A management company that costs you 3% but closes a 15% RevPAR gap is delivering 12% net.

The asset management conversation starts here. Before discussing fees, we ask every prospective owner to share their STR report and model what closing the gap would mean for their P&L.

The conversation changes at that point. Fees become a detail. Performance becomes the subject.