Emaar Hospitality to focus on alternative model for hotel management agreements – Incentive fee based on profits
Dubai, UAE – 1 May 2017 –
Emaar Hospitality Group has introduced an industry-defining model for hotel management agreements. The alternative model offered by Emaar Hospitality Group is based only on an incentive fee, which is driven by the operator’s ability to generate profits rather than revenues.
This is a marked departure from the prevalent fee structure in the hospitality sector, where hotel operators receive a base fee as a percentage of gross revenue and an incentive fee based on the gross operating profit.
In an industry where the majority of global fees earned are linked to … Read More