Hotel owners and operators tell Louise Oakley why it is essential that their relationships are based upon mutual trust.

The relationship between a hotel owner and a hotel operator is one of the most complicated partnerships in the world of business. The relationship has many layers and management contracts can take years to define before the two parties actually sign.

The contracts themselves are complex too and Hotelier does not profess to be able to explain the ins and outs of them in one article (we’ll leave that to your lawyers).

Story continues below
Advertisement

What all these contracts are underpinned by, however, is the mutual trust that exists between the owner and the operator — and it is the establishment and maintenance of that trust that Hotelier will explore here.

According to the senior vice president of development for Corinthia Hotels, Paul Pisani, building this trust is vital to achieving success.

“The common denominator is that, notwithstanding the type of relationship (e.g. management; JV etc.), and where it is domiciled, all relationships are ultimately driven by the human element and mutual trust or confidence can help offset most differences,” says Pisani.

“I focus on structuring relationships which work long-term, building trust and understanding, and tailor-making them by giving individual owners the time, dedication and attention each requires on a day-to-day basis,” he adds.

Rotana chairman Nasser Al Nowais agrees that this “human element” is critical.

“If I look back at Rotana’s history, to its modest success, I would say it is based on genuine friendships, which have been built solidly over the years and have led to strong business partnerships.

We pledge to understand and meet the individual needs of all who we deal with, especially owners, who entrusted us with their investment,” he says.