What is hotel management agreement?
A structure where the owner retains the hotel’s economic upside and downside but pays a third-party operator a management fee to run day-to-day operations, rather than leasing the hotel for rent.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.