Dubai-based hotel group Citymax Hotels has adopted the ‘Manchise Contracts’ system to offer a flexible alternative to traditional long term management agreements for Middle East hotel owners/developers.
According to Citymax, ‘Manchise Contracts’ will allow it to fully manage a new property for three years, establishing brand concepts, operating procedures, marketing mix and training procedures within the property. After that three year period, the hotel owner will then be able to resume management of the property under a franchise style arrangement.
Citymax Hotels COO Russel Sharpe explains: “As owner-operators ourselves, we understand both sides of the management agreement equation, and have developed a new management franchising model to appeal to owners and developers of hotel projects in the region who do not necessarily wish to tie themselves to a management company for the next decade or longer, and who wish to have some involvement with the running of the hotel.”
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“This is not a new concept for the Middle East, but one which we expect to appeal to regional owners. It gives new entrants into the industry the opportunity to learn the business without jeopardizing their investment, and once the hotel operation is beginning to stabilise and mature, the owner will also be ready to run it as he wishes,” he added.
Citymax Hotels is part of the hospitality division of Landmark Group, and currently operates three hotels in Dubai’s Al Barsha and Bur Dubai, as well as the UAE emirate of Sharjah.
Last year Citymax announced that it was planning to extend its mid-market three-star hotel brand, Citymax, with a new premium, four-star brand.
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