This article reports an experimental Delphi study of expert attitudes to management contracts in the Dutch hotel industry. The study was prompted by appreciation of the apparent trend towards the divesting of property by international hotel companies, which is also explored here. The purpose of the research reported was to ascertain expert views of the implications of such a trend for the Dutch hotel industry, which has a history of risk aversion and aversion to management contracts as a model for hotel operations. The Delphi approach allowed access to a variety of experts regarding different groups and stakeholder perceptions. The findings of the study, which is the first of its kind to address this question in the Dutch hotel industry context, suggest that there is an expectation of greater diversity in the financial arrangements for managing hotel operations, but no inclination to radically change the business practices that have hitherto characterised the Dutch hotel sector.
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The hotel management agreement is a common, but arguably at times misunderstood, hotel operating structure. This study has sought to explore how both owners and hotel management companies (“operators”) perceive aspects of ownership in managed hotels. In-depth interviews were held with both operator and owner executives and it was found that, even though interviewees appeared to be aware of the nature of the relationship established by a hotel management agreement, in practice operators in particular use a working definition of the model that is more akin to a lease. Misunderstandings of the hotel management agreement can cause confusion as to where risks and responsibilities lie. Based on these findings, we argue that ownership of the operating business, in addition to that of the hotel’s real estate, deserves to be more explicitly acknowledged and addressed.
