Hotel Management Contract ( HMC)?

Why should an independent owner seriously think about it? 

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The separation of land ownership and hotel operations must benefit owners first and foremost: they have the opportunity to invest in hotel real estate while accessing professional expertise of hotel management companies, who run their asset on their behalf.

Owners may well prefer to develop other business streams and decide not to devote thousands of hours to managing their assets, while still generating substantial profits... hence the choice of a professional structure which is tasked to generate these profits.

If you choose PJD-Consult, how will we take concrete action?

We will first establish a due-diligence, enabling to get the most accurate  picture of the asset situation. we will review the operation, and competitive environment, through audits, picture sales analyses and follow-ups.

We will define the needs and we will propose the strategics approach (pricing, distribution, marketing, etc.) 

We will develop management tools and will execute contracts with tour operators and OTAs. 

We will be responsible for designing marketing elements (newsletter, brochures, advertising, Public Relations, Press Relations, etc.). But also improving the SEO of the site and managing responses on review platforms.

We will manage Human Resources from recruitment to training. 

Purchasing process will be handled in compliance with regulations and standards.

Owners will appoint a management company to operate the hotel business on behalf of the owner subject to improvement of the bottom line.  In all cases, owners remain the owner of the building and the business and retains the majority of the risks and profits of the operation. In return for its management on his behalf, we will be rewarded through fees, directly related to the performance. 

We are of course a small management company, but with great experience, and with the bests...

We guaranty:

In all cases, we can guarantee a growing net profit from the first year! through great flexibility and relatively short contract durations.

We can also work very short term in scenarios such as recovery, renovation, vacation, life difficulties, etc.

Our management contracts, of course, contain exit right for the owner, subject to performance with option to terminate under mutually agreed terms, without prejudice to the owner.  

Our remuneration will be based on:

A “base fee ” calculated as a percentage of turnover (which will never exceed 1% of Revenue);

An “incentive fee" calculated as a percentage of operating profit, always adjusted.

A lot of emphasis will be placed on the "Incentive" to secure our commitment, with minimum levels of operating profits.

In addition to the commission fees defined above, we will charge in a clear and justified manner for the services of the centralized system covering marketing and possibly reservations generated by our Systems.

Working capital

The owner will be required to provide the working capital necessary to continue operating the hotel as and when required. We will manage the hotel's bank accounts on behalf of the owner, collecting revenue and paying operating expenses. At the end of each month, the owner transparently receives adequate reports on the operation. 

Owner Control:

We provide daily management of the hotel, however under the strict control of the owner. The management contract will require detailed reports and regular asset management meetings between the management company and the owner. The owner will have approval rights for:

• Appointment of key personnel;
• Annual budget;
• High value and/or long term contracts;
• High value litigation.

Capital expenditure:

The owner is responsible for funding hotel's furniture, fixtures and fittings . A percentage of income (usually 1-3% maximum) will be placed in a separate reserve each month to ensure that funding for these expenses is available when needed. All expenses related will be always subject to Owner full approval.