In the dynamic world of our great hotel industry, two primary management models stand out: Branded Operator and Independent Management Company (IMC).
In the case of the Branded Operator, the branding company is also the management company, as exemplified by well-known names such as Hilton and Marriott. In this case, the hotel owner enters into an agreement with the Branded Operator, who conducts and supervises the day-to-day operations of the hotel and makes available its brand and distribution system. In some cases, the brand company will, under a franchise agreement, provide only its brand and system, leaving management to the owner or an Independent Management Company.
Independent Management Companies, as the name suggests, manage the hotel on behalf of the owner and do not prescribe or even require a brand. However, if the owner wishes, the IMC can operate the hotel with the benefit of a brand and system under a franchise agreement. Initially prevalent among smaller hotels, this approach has evolved to include large-scale corporate and luxury hotel properties.
The surge in popularity of third-party/IMC agreements underscores owners’ increasing preference for flexibility and input into how their assets are operated. It has also shown that IMCs can yield higher profits, all while aligning seamlessly with brands as franchise partners and thus creating an ecosystem where everyone plays to their strengths.
Trilogy Hotels is an Independent Management Company. It is a privilege to apply our skills and experience for our current and future hotel partners.