The operating model determines who runs a hotel, who carries the economic risk and who keeps the profit: owner operation, lease, management contract or franchise — plus hybrids such as hybrid leases and "manchise" agreements. For owners the choice decides return and influence, for operators risk and scalability. No model is "the best" — only the one matching capital, competence and risk appetite.
Three inputs from the owner's perspective — the recommendation appears instantly.
| Model | Who carries operating risk? | Owner's return | Typical catch |
|---|---|---|---|
| Owner-operated | The owner | Full profit (and loss) | Needs real operating competence — real estate and hotel operations are two professions |
| Lease | Tenant | Fixed/hybrid lease | Tenant creditworthiness; insolvency leaves the house empty (see lease agreement) |
| Management contract | Owner (operator runs for a fee) | Result after fees (base ~2–4% of revenue + incentive ~8–12% of GOP) | Result risk stays with the owner; performance clauses needed |
| Franchise | Owner/operator | Full profit minus franchise fees | Brand standards cost (PIPs!); you still must operate — see franchising |
Market-standard: a base fee of roughly 2–4% of revenue plus an incentive fee of about 8–12% of GOP — details (fee basis, owner's priority, performance test) are negotiable and belong with a hotel-specialised lawyer.
A fixed lease maximises predictability but shifts all risk to the tenant — who prices it in. Hybrid leases (base + revenue share) often deliver the higher total return at bearable risk and keep the tenant economically healthy.
Only at contract end or via agreed exit clauses — so think through terms, extension options and performance termination rights BEFORE signing. A model switch is practically a new project (staff! § 613a).
If distribution and corporate business are missing: often yes (soft brands as a middle way). With strong location, concept and direct sales: do the maths — combined brand fees of 8–12% of rooms revenue must be earned first.