What are the advantages and disadvantages of hotel leasing and entrusted management?

The advantages and disadvantages of hotel leasing operation and entrusted management are as follows:

First of all, the leasing business model has the following advantages:

1. Save money: you don't need to pay high management fees to the hotel management group, and you don't need to pay a lot of staff salaries and benefits to the management team. On the surface, it can save a lot of money.

2. I have the final say. Freedom and hotel management are still in my own hands.

3. Enhance the image and popularity of the hotel to a certain extent.

Disadvantages of leasing business model:

For hotel operation and management, this model has no substantial help, can not bring tourists, can not bring obvious help to hotel marketing management, technical support, personnel training, service standard supervision and so on.

Second, the hotel entrusted management mode

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.

However, there are two major defects in the hotel entrustment management model:

1. The investor transferred the management right to the management company, which greatly reduced the control over the hotel operation.

2. Entrust management costs a lot, which will reduce profits.