Hotel management company
The effectiveness of hotel business results is achieved through the use of strategies, operating procedures and management experience by hotel companies. Engaging a third-party company to manage the hotel industry is a common practice all over the world and in Russia.
If an investor runs a hotel business on his own, without hiring a management company (MC), he needs to calculate in advance how much revenue he will receive and how much he will incur expenses. Since the owner himself participates in the management, he does not share with anyone the profit left after paying taxes and repairs.
UC Management
As a rule, a large hotel management company will only take over management if the hotel has at least 70 rooms, because the number of rooms is too small for the company to pay wages and make a profit on its own.
The responsibilities of the management company usually include
- management of all aspects of the hotel (room service, administration, catering)
- selection and training of personnel, control over their work
- setting prices and tariffs
- advertising, marketing, public relations
- planning and cost control
- preparation of financial statements for the owner
- purchase of equipment and conclusion of contracts with service providers
