Operator Selection Process

Operator selection and the negotiation of management contracts

Operator selection and the negotiation of management contracts can be long and difficult processes and can differ from project to project. Based on our operator selection experience in Africa, hotel operators tend to be more experienced in terms of the operator selection process than the owners, so they 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 the negotiation of management contracts in Africa. We have a wide range of operator selection experience, and we have successfully worked with a number of international operators and hotel owners to conduct the operator selection process, as well as negotiate 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, the financial impact of the key terms on the project, and negotiating the commercial terms.

If the operator selection and the negotiation process of the management contract are completed successfully, the outcome can make a great difference to the overall financial performance of a hotel investment. The greater the performance of the hotel 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.

HTI Consulting’s operator selection and management contract negotiation goal is to work closely with hotel owners to assess their business requirements, in order to select the most appropriate operator that will in turn maximize the performance of the hotel development and its overall asset value.

HTI Consulting has completed 12 operator selection projects and management agreement negotiations over the past year and a half in Africa. The operators that we have worked with include: Marriott International, AccorHotels, Wyndham Hotels and Resorts, Radisson Hotel Group, Hilton, Hyatt, Minor Hotel Group, Dusit International, and PMR Hospitality Partners.

Overall, our experience in operator selection and management contract negotiation, our relationship with the operators, and our broad experience across the Africa combine to contribute to our success in providing mutually beneficial returns to both the operator and the owner of hotel assets.