Sky Hotel Management
Independent Hotel Management
SHM offers Independent Hotel and Resort management services.
TPO Structure easily explained:
The Owning company engages in a Franchise / License agreement with an international hotel Brand at a franchise fee, which includes :
- License agreement
- Marketing and reservation fee, plus a distribution and reservation system and marketing platform of the brand.
- Alternatively the owning company has it’s own private brand.
The Owning company engages with SHM in a hotel management agreement for managing the property for a management fee.
The Owning company employs the team and all employees by contract and the team is consequently managed by SHM, with the General Manager jointly appointed by the owning company and SHM.
All revenues, expenses and profits remain with the owning company.
Why TPO ?
- Lower cost than Hotel Management Agreement (HMA) with more attractive terms
- Still benefit from International brand marketing & distribution and loyalty programs
- Leaner and more flexible property management
- Outsourcing of key departments : Sales, Marketing, Finance – all optional
- Market driven revenue management
- Owner has option to maintain and or grow it’s own brand
- TPO tends to have owner’s interest more in mind than Brand Operator
Benefits of TPO?
- SHM offers international hotel management skills
- Flexible brand standards
- Owner retains control
- Owner is not involved in day to day operations
- Commercial Terms are more attractive & less binding
- Owner has direct interaction with hotel management company as required
FAQs
What is a white label hotel management company?
A white label hotel management company provides independent hotel management services without operating under its own consumer brand. Beacon Sky Hospitality’s Sky Hotel Management operates as a Third Party Operator, managing branded, unbranded, or owner branded hotels and resorts.
What is the difference between a franchise and a Third Party Operator?
A franchise gives the hotel access to an international brand’s name, marketing, reservation systems, and loyalty programs. A Third Party Operator manages the property’s day to day operations on behalf of the owner. The two arrangements can work together, with the owner retaining ownership and greater operational control.
How does a TPO differ from a full brand management contract?
A Third Party Operator can provide greater flexibility and owner control than a traditional full brand management contract. The owner can benefit from an international brand while using an independent management company to operate the property, often with more flexible commercial terms.
Why should a hotel owner choose a Third Party Operator?
A Third Party Operator gives owners access to professional hotel management expertise while maintaining greater control over their property. It can also provide flexible management, revenue management, and optional support for sales, marketing, and finance.