| Fee Structure
Our philosophy regarding our compensation is fundamentally that we
make every attempt to create a situation where our clients never
question our motivations. We try to align our fee structure to the
owner's financial goals.
Management Contracts
We prefer to divide Management Fees into two parts. The Base
Management Fee is intended to cover our basic costs of providing our
services. An Incentive Management Fee ties our profitability to the
results of our efforts as shown in the profitability of the hotels
we manage.
Base Fee
This is usually a percentage of Total Revenues, or a minimum
monthly amount, whichever is greater. The percentage ranges from
two to four percent.
Incentive Fee
Once the owner’s financial goals for the hotel are understood
and achievable results are agreed to, an Incentive Management
Fee is negotiated which relates to those goals.
Consulting and Oversight Management Services
Consulting fees are negotiated on an individual basis depending on
the services provided and the time involved. On certain projects,
fixed fees are applied while others are on an hourly basis. Hourly
fees vary with the level of staff experience necessary and the
complexity of the assignment.
Asset Management
Fees are also divided into two parts. The Base Asset Management Fee
is intended to cover our basic costs of providing our services. An
Incentive Asset Management Fee ties our profitability to the results
of our efforts as shown in the profitability of the hotels we
manage.
Base Fee
This is usually a flat monthly amount based on the services
provided.
Incentive Fee
Once the owner’s financial goals for the hotel are understood
and achievable results are agreed upon, an Incentive Asset
Management Fee is negotiated which relates to those goals and
our level of influence over management.
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