As much as people ‘do business’ with like-minded people, businesses ‘do business’ with like-minded businesses. There certainly needs to be some sort of a match.
Whether buying or building a hotel, the decision to involve a hotel management company is a big one. In fact, if the project is funded by a major financial institution, this requirement is obligatory. But finding this ‘match’ is where things can go wrong, as legacy relationships between financial institutions and the big management companies can interfere with making the right choice. Hotel consultants performing operator selection could be biased to management companies who are rewarding them handsomely, and because of this bias, don’t always act in the best interest of the business. The result? A mis-match between hotel and management company.