Who are the owners suitable for hotel rental operation?

In the hotel mode of entrusted management, the owner provides the hotel land use right, buildings, furniture, equipment and facilities, operating funds, etc. And bear legal and economic responsibilities, and the obligations and responsibilities of the hotel management company will be clearly stipulated in the contract. Hotel entrusted management mode is suitable for investors who have no hotel management experience and requires owners to have a certain resource base. The development level of hotels in China is lower than that in developed countries. In the early stage of hotel industry development, many owners were not familiar with the modern hotel management mode, and entrusted foreign companies with advanced hotel management experience to help manage the hotel, which achieved good results.

The entrusted management mode of hotels also has two shortcomings: 1. Investors transfer the management right to the management company, which greatly reduces the control right of hotel operation. 2. Entrust management costs a lot, which will reduce profits.