Management Agreement System
Formula for Success The Management Agreement System
Hotel management methods vary widely. Success or failure often depends on which method is chosen. Drawing on three decades of experience and success, Chang Hsien proposes the best choice. Generally speaking there are three categories of hotel management:
In which the owner of the land and building operates and manages the hotel.
Herewith the owner of the property leases it to a hotel operator who manages the hotel.
||Management Agreement System:
Whereby the property owner establishes a company for hotel ownership but designates a hotel management company to operate the hotel.
Chang Hsien proposes the management agreement system because it believes this to be the most efficient method.
Under this method, Chang Hsien assumes responsibility for daily hotel operation through a general manger and other key management staffs that Chang Hsien assigns and who act on behalf of the owner.
For the Owner, Support at Every Stage
Under the management agreement, the owner owns and controls the hotel in its entirely, which is defined not only as the hardware (such as the hotel building, furnishings and equipment) but also includes the personnel employed by the hotel and all the revenue and costs/expenses derived from the hotel operation.
The management agreement covers all activities, even from the pre-opening stage. It usually begins with market research by Chang Hsien, and followed by a feasibility study, site evaluation and product definition. Chang Hsien also assists the owner in working out a conceptual design. Then the owner builds and purchases the hardware (hotel building, furnishings and equipment), and employs the personnel, based on Chang Hsien proposals.
Through the hotels pre-opening office, Chang Hsien supports the owner in all aspects of pre-opening activities, which include training of personnel, drawing-up of operational manuals, marketing plans and sales promotion, etc. After the opening all aspects of hotel operation, including accounting are performed by Chang Hsien on behalf of and for the account of the owner. As a consequence, the profit derived from the hotel operation belongs to the owner.
Chang Hsien acts for the owner in performing efficient day-to-day hotel operations and assisting the hotel by providing support and advice on all phases of operation such as employment of personnel, marketing and sales policy strategy, etc. These services are what the management agreement calls for and re performed to perfection by Chang Hsien, highly qualified as one of the most experienced hotel operators.