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May 31, 2024
9 Free Financial Modeling Lessons
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The owner of the hotel (in this case GS/Colony) pays a fee to be under the Hilton (or any other) brand flag. They also a pay a fee to a management compnay to run the hotel (usually a thrid party management company), but it coudl also be managed by the owners of the hotel or the management company of the brand.
Those are the only connections.
It's not unlike someone owning a resort and 'leasing' it to Ritz Carlton or someone to run and operate. Ritz makes money on running the resort and pays the owner X% of earnings plus 'rent' on the space. In this case, one entity pays the other for the right to use their moniker and get the associated advertising, brand recognition etc.
^ Not really. The Ritz doesnt lease any properties. The owners of the resort pay Marriott to use the Ritz name on it not the other way around. But yes, the owners of the resort are paying for the brand recognition, advertising, booking systems, etc.
Huh? That's really odd. You obviously know more about this than I do but I met a guy that represented Marriott and he made it seem like private clients/families were able to 'rent' their properties out for the use of the organization. Thanks for clearing that up.
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