Hospitality management consultancy: managed, franchised, leased or self-run?
Before you choose a brand, choose how your hotel will be run. Amit Parmar compares every operating model for your property and helps you pick the one that fits.
- Management, franchise, lease and self-run compared
- Returns, control and risk modelled for your hotel
- Help setting up the chosen model
- Owner-side only
- Paid by hotel owners, never by brands or vendors
- 100+ hotel projects
- Advised across India
- 50+ hotel brands
- In Amit’s working network
- 40+ cities
- From metros to tier 2 and 3 markets
Four ways to run a hotel
Every hotel owner has to decide who will run the hotel and on what terms. In India there are four main options, with variations within each:
- Management contract. A brand or operator runs the hotel on the owner’s behalf, using the owner’s money and bearing little financial risk. The owner keeps the profit after fees and carries the losses.
- Franchise. The owner pays to use a brand’s name, standards, reservation system and loyalty programme, but runs the hotel with their own team or a third-party manager.
- Lease or revenue share. An operator rents the hotel, or shares its revenue with the owner, and runs it at its own risk. The owner gets a steadier income with less upside.
- Self-run independent. The owner runs the hotel under their own name, with full control and full responsibility.
Each model allocates control, risk and reward differently. Choosing between them is one of the most important decisions in a hotel project, and it should be made before brand negotiations begin, not as an afterthought.
Operating models compared
A simplified comparison. Real agreements vary widely.
| Management contract | Franchise | Lease / revenue share | Self-run | |
|---|---|---|---|---|
| Who runs the hotel | Operator | Owner or third party | Operator | Owner |
| Owner’s risk | High | High | Low to medium | High |
| Owner’s control | Low to medium | High | Low | Full |
| Fees to brand | Highest | Lower | Built into rent | None |
| Owner’s upside | High | Highest | Limited | Highest |
| Owner’s workload | Low | High | Lowest | Highest |
Matching the model to the owner
There is no universally best model. The right choice depends on the owner as much as on the hotel.
An owner with no hotel experience who wants a hands-off investment will usually be best served by a management contract with a capable brand, accepting the fees in return for the expertise. An owner who already runs hotels successfully, or who can hire an experienced general manager, may earn more under a franchise, paying lower fees and keeping control. An owner who values predictability, or who wants to limit risk while the market matures, may prefer a lease or revenue share. And an owner with a distinctive product and strong local reputation may do well independently, especially in leisure or wedding markets.
Hybrids are increasingly common: a franchise with a separate management company, a management contract with an owner-run banquet operation, or a lease that converts to management after a few years. Amit helps owners understand these options and what each would mean for their hotel in practice.
How Amit compares the models
Amit’s hospitality management consultancy builds a financial model for your hotel under each relevant operating model, using realistic assumptions about revenue, costs and fees for your market. The comparison shows, year by year, what the owner would receive under each model, how sensitive that is to weaker performance, and how much management time and capability each model demands.
Alongside the numbers, he sets out the non-financial factors: control over pricing and staffing, brand visibility, ease of exit, and what happens if the relationship goes wrong. With the model chosen, the next step is usually a competitive brand tie-up process for that model, or setting up an independent operation with pre-opening support.
Hotels Amit has advised
Every tag is a real hotel. Sarovar, Clarks, Lemon Tree and more, across six states.
What is hospitality management consultancy?
Advice to owners on how their hotel or hospitality business should be managed: which operating model, which operator and on what terms, and how to oversee the result.
Is a franchise cheaper than a management contract?
Franchise fees are usually lower, but the owner takes on the cost and responsibility of running the hotel. The total cost depends on the quality of the owner’s team.
Can a hotel move from franchise to management later?
Sometimes, depending on the agreement. Amit can include flexibility in the original contract.
Is leasing my hotel to an operator a good idea?
It suits owners who value predictable income over upside, but lease terms vary widely. Amit compares lease offers with management and franchise options.
Can I run my hotel independently and still get online bookings?
Yes. Independent hotels sell through their own websites, online travel agencies and corporate relationships. Some join soft brands or marketing networks for extra reach.
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Tell Amit about your hotel project
Amit reads every enquiry himself and replies within one working day.
- Owner-side only: no fees from brands or vendors
- First conversation is free and confidential
- Your details are never shared with brands without your consent