THIRD PARTY OPERATOR

We all are aware of three models of Operating hotels – Owned, Managed and Franchised. However, with franchising model gaining popularity, there is a need for GOOD third-party operator in India.

The question is why do you need a TPO or a Third-Party Operator.

1- TPO – acts more on owners’ behalf than brand. So, a shorter contract is made rather than having 20 years long contract.

2- Lower costs AND better usage of funds- The expert third party can wisely use the funds and can negotiate where it is not providing better ROI for the owners.

3- More efficient – TPO has small teams and can be more efficient than huge brands especially region wise.

4- Changes can be implemented quickly with TPO than Huge brands decision making process.

5- Better Asset management – TPOs have experts who can give better asset management benchmarking best practices even outside hotel companies.