From The Perspective Of The Owners, Analysis And Research, Commissioned By The Hotel Management Mode

Ever since China's open and reform,the hotel industry,as one of the earliest industries opened to foreign investors,has attracted many international hotel management groups to enter china market in the way of franchise or directly investment.From mid of 1990's,"entrusted management" has become a dominating method of the cooperation between international hotel brands and local developer(the owner).This way of cooperation,so called "international brands+China investor",has motivated the Chinese hotel industry especially top class luxury hotel industry to become prosperous.At the same time,when the entrusted hotel management is applied,because of the split up of ownership and management,asymmetric information situations,dual consignation of hotel and different target oriented---the owner focuses on return of investment and the assignee focuses on royalty fee and premium on brand value,two problems have been created.One is how the owner motivates and restricts the brands and the other is how to maintain and increase the value of the owner's assets.Based on the review of the development history of high class hotels & international hotel management groups and on the analysis of status in quo,in order to maximize the cash flow,maintain and increase the owner's assets,I will use both academic and Empirical Study methods,factor and comparison analysis approach,from the interest of the owner,to primarily explain how to negotiate and make specific terms in the entrusted management contract and how to supervise the operation after the hotel opens.