Operator Selection

Operator selection and management contract negotiations can be long and difficult processes, and can differ from project to project. Based on our experience of operator selection in Africa, we have found that hotel operators tend to be more experienced in terms of the operator selection process than the owners, and thus have a distinct advantage when it comes to the negotiation of management contracts.

HTI Consulting is a leading consultation company with a focus on operator selection and management contract negotiation in Africa. We have many years of experience, and have successfully worked with a number of international operators and hotel owners during their operator selection processes, as well as negotiated mutually beneficial management agreements.

The operator selection process involves setting criteria based on the owner’s objectives with regards to the project, finding a good brand match for the specific development, assessing the operator’s industry performance, measuring the financial impact of the key terms on the project, and negotiating the commercial terms.

If the operator selection and management contract negotiation processes are completed successfully, the outcomes can make a great difference to the overall financial performance of a hotel. The greater the performance of the hotel’s investment, the greater the returns to both the owner and operator. This is why, at HTI Consulting, our focus is on creating a mutually beneficial agreement that will positively affect both the operator and the owner after the operator selection process.

Our goal is to work closely with hotel owners to assess their business requirements, in order to select the most appropriate operator that will maximise the performance of the hotel development and its overall asset value.

HTI Consulting has completed 12 operator selection projects and management agreement negotiations in Africa over the past year and a half. The operators that we have worked with include: Marriott, Accor, Wyndham, Carlson Rezidor, Hilton, Hyatt, Minor, Dusit, and PMR.

The combination of our experience in operator selection and management contract negotiation, our relationship with the operators, and our broad experience across the African market contributes to our success in providing results for both the operators and the owners of hotels.