a woman smiling for the camera

By Brittney Jones, VP of Strategic Partnerships at Raines

The industry of third-party hotel management has consistently been on an upward trajectory over recent years. For many hotel owners, the perks of choosing third-party management have always been clear. In today's uncertain times, this approach is an even more enticing option.  

As the market dynamics evolve rapidly, you often face the challenging tasks of resource allocation and initiative prioritization to amplify your return on investment (ROI). Considering the intense competition within our industry, all types of hotels can significantly benefit by considering third-party management companies' engagement to leverage profit potential fully.  

There are several reasons why you should consider third-party management operators to maximize your ROI. 

A Focus On Strategic Decision-Making  

By partnering with a third-party management company, owners can shift their focus from day-to-day operations to strategic planning and growing other aspects of their business. This allows the owner to concentrate on long-term growth strategies, investment opportunities, and hotel portfolio expansion. Third-party operators handle the operational intricacies, allowing owners to leverage their expertise and maximize their assets’ overall value.  

At Raines, we combine the advantages of third-party management with the unique perspective of being owners ourselves. We know firsthand the challenges and opportunities faced by the owners we work with. This understanding enables us to provide an empathetic approach and ensure that the goals and aspirations of the owners we work with are central to every strategy and decision made.  

Economies of Scale and Cost-Effective Operations  

Third-party management companies hold considerable purchasing power, which can lead to economies of scale and discounts that might not be accessible to individual hotel owners or those with smaller portfolios. They can secure excellent deals on uniforms, supplies, linen, equipment, and energy investments while ensuring the delivery of high-quality goods and services. This purchasing power can have a positive impact on your financial results.  

Access to High-Caliber Workforce  

The large scale of a management company attracts top-level personnel. Third-party operators can tap into high-caliber talent often out of reach for many hotel ownership groups. By offering fair compensation and benefits, they maintain low turnover rates. Their extensive recruitment networks and industry connections enable them to identify and attract experienced employees, significantly improving the quality of your hotel's workforce.  

Proactive Risk Management and Mitigation  

With the constant changes in the hospitality industry landscape, especially in the wake of the global pandemic, significant risk is involved. It's important to realize that the third-party management company assumes the risks linked to the everyday operations of your hotel. Their teams, backed by expertise and a comprehensive understanding of market fluctuations, economic uncertainties, and escalating costs, are well-equipped to make informed decisions to mitigate risks.   

Moreover, the management company handles employee responsibilities, considerably reducing HR burdens for you as the hotel owner. From hiring to compliance, they take care of various employment-related issues, providing proactive and compliant solutions. This setup frees you to focus on your core responsibilities — ensuring the profitable operation of your hotel.  

Boosting Brand Image and Recognition  

Engaging with a third-party management company allows your hotel to align with industry standards and best practices, positioning it as an industry leader. The management company's branding and marketing expertise helps elevate your hotel as an attractive destination for guests, local authorities, and potential investors.  

The hospitality industry is demanding, and as a hotel owner, you are continually pressed to outshine the competition. However, with a proficient third-party management company, you can have the reassurance that your investment is being maximized. The benefits of third-party management extend beyond just financial returns, encompassing enhancements to brand reputation, personnel management, and guest experience.