An operator’s past results can inform an owner’s assessment, but performance at another property does not transfer automatically. The owner should understand which conditions produced those results, what the operator controlled and whether the new asset has comparable demand, team, facilities and authority. For related ownership and operational context, see the hotel-owner perspective, hotel operations, and Feathers Hospitality’s management approach.
Use verified references and review proposed claims against the management agreement. For related context, see the hotel-owner perspective, hotel operations and Feathers Hospitality’s management approach.
At a glance
- Ask for comparable examples and consistent definitions.
- Separate operator influence from market and asset conditions.
- Translate references into a testable plan for the new property.
Select relevant comparison properties
Compare size, service model, location, seasonality, facilities, staffing and investment condition. A luxury resort and a small independent hotel may have little in common even if both are described as hospitality assets.
Ask why the operator selected each reference and what differs from the proposed property. Avoid comparing only the strongest example.
Verify measures and time periods
Request definitions, period, source and whether results are audited or self-reported. Occupancy, revenue, cost and guest feedback can be calculated differently. Use the same basis before drawing a conclusion.
Review the effect of room availability, renovation, market events and changes in ownership. Ask about adverse periods as well as improvements.
Understand the operator’s actual contribution
Identify decisions, staff, systems and investments the operator controlled. Results may depend on owner-funded renovation, brand, distribution or a strong local team. Determine which capability is proposed for the new hotel.
Ask who led the work and whether that team will join the new mandate. Confirm what processes were repeatable and which depended on a specific person or supplier.
Check transferability of systems and team
Review training, reporting, technology, procurement, revenue approach and local management. A shared system may require setup, contracts or data migration. Confirm who owns implementation and what support the property must provide.
Test the plan against the new property’s service hours, staffing, facilities and local supplier environment. Ask what the operator would change after an initial site assessment.
Use references and evidence responsibly
Speak to current or former owners where permitted and ask consistent questions about communication, delivery, cost control, disputes and transition. References are one source, not independent proof of every claim.
Request examples of targets missed and how the operator responded. Review contract terms, reporting, audit rights and exit arrangements with professional advisers.
Convert assessment into an implementation plan
Agree baseline measures, milestones, decision rights, risks and review cadence before appointment. Specify what evidence will show progress at the new property. Avoid copying another hotel’s targets without adapting them.
At each review, compare plan with actual conditions and update assumptions transparently. This preserves learning from past results while giving the owner evidence about performance at the asset being managed. Ask whether the operator can provide working examples, staff references and evidence for the claimed capability. Protect confidential information in the diligence process and obtain permission before contacting references. Record what remains unverified and resolve material gaps before agreeing performance expectations. Separate results achieved by the operator from results caused by a distinctive location, capital investment, market recovery or previous team. Request the period, property profile, opening status and owner support behind each example. Where comparable figures cannot be shared, ask for a structured explanation of the method and the limits of the evidence. Test the proposed approach against the new asset’s staffing, systems and renovation needs, then agree what can reasonably be measured during the first operating year. Set a review point and a route for addressing missing data before signing.
Frequently asked questions
Are references from similar hotels enough to prove performance?
No. Verify definitions, conditions, team involvement and outcomes, then assess the proposed plan for the specific asset.
Should the owner set the same targets as the reference property?
Only after checking capacity, market, investment and contract assumptions. Set targets that fit the new property and can be measured.