The choice depends entirely on the owner's risk tolerance, operational capability, and desired level of control. A Management Agreement (MA) is full-service but grants the brand more operational control. A Franchise Agreement (FA) grants the owner more control but requires robust internal expertise. We use a quantitative approach to model the financial outcome of both hospitality partnerships based on your specific asset.

We provide end-to-end support for hotel mergers and acquisitions in hospitality industry. This includes target identification, valuation modeling, financial and operational due diligence, and deal structuring. Our expertise helps clients accurately assess the inherent value and risk of the acquisition, ensuring a profitable transaction that aligns with their portfolio expansion strategy.

We focus heavily on the Performance Termination Clause, ensuring the operator can be removed if specific, measurable financial targets (like RevPAR Index or GOP) are not met over a defined period. We also scrutinize non-compete clauses, approval rights for budgets, and the operator's contribution to working capital to minimize owner exposure and preserve the asset’s performance potential.

The quality of the hotel brand partnerships directly impacts valuation. A strong brand with a robust distribution system typically commands a higher revenue premium, increasing EBITDA and, consequently, the asset's valuation. Furthermore, a favorable, owner-friendly contract negotiated by experts like Consult Folio is viewed positively by institutional buyers and hotel investment advisors, significantly boosting the exit multiple.

Yes, we specialize in asset repositioning and strategic contract termination. We first audit the current agreement to determine the necessary conditions for termination (often a failure to meet the Performance Test). We then execute the strategy for a timely, cost-effective exit from the current brand and facilitate the transition to a new, higher-performing hospitality partnership.

No. Our expertise covers the full spectrum of hospitality partnerships, including negotiating with global mega-brands, regional chains, and high-performing independent management companies. Our objective is always to find the partner that offers the highest net return and best operational fit for the asset's specific market and strategic goals, regardless of the brand’s size or geographic reach.

The Feasibility Study provides the foundational data—market demand, competitor pricing, and projected RevPAR—that determines which brand is financially best suited for the site. We use the study's projections as the baseline for negotiating the Management Agreement's performance clause, ensuring the brand is contractually required to achieve the performance levels identified in our expert analysis.

Key money (or financial incentives) offered by a brand is a critical element of the deal. We advise clients on the appropriate level of incentive based on the brand's projected fee generation and its need to secure the deal. Our negotiation focuses not just on the amount, but the structure, ensuring the incentive money is non-refundable and disbursed upon specific performance milestones, maximizing the immediate benefit to the client.

We advise on the legal and organizational setup, recommending structures that minimize tax exposure and maximize liability protection for the owner. We clarify the delineation of responsibilities between the owner's asset management team and the brand's operating team, ensuring clear lines of communication and control for effective hotel ownership and management oversight.