Why are hotel management companies booming in France ?
The hotel industry in France is undergoing a profound transformation. Among the emerging models, hotel management companies are emerging as a key solution for owners seeking to optimize their revenues while delegating the day-to-day management of their establishment. But why is this model so popular? What are the advantages? Find out all you need to know in this article.
What is a hotel management company ?
A hotel management company is a company that specializes in the complete management of a hotel or hybrid establishment (such as residences or rental apartments). Unlike the owner, it does not hold legal ownership of the establishment, but provides day-to-day management.
What this includes:
– Complete operational management: finances, teams, services, etc.
– Customer development and reputation optimization.
– Implementation of effective marketing and sales strategies.
This model enables owners to entrust their establishment to experts, while benefiting from increased profitability and performance.
6 advantages of hotel management companies
The success of this model is based on several strategic benefits:
💪 1. Shared expertise
Hotel management companies focus exclusively on property management. They master best practices in yield management, digital marketing and customer service. This expertise enables them to offer innovative, high-performance solutions to their partners. For example, a hotel managed by a company can quickly integrate digital tools or modern approaches to stand out in a competitive market.
🌟 2. Optimized management
By pooling resources and tools, these companies are able to reduce operating costs while improving service quality. They also negotiate advantageous rates with suppliers thanks to their network, generating substantial savings.
🤩 3. Customer satisfaction at the heart of the model
In the hotel business, the customer is king. Hotel management companies adopt an end-user-oriented approach, offering a top-notch experience.
Result:
→ Increased loyalty from existing customers. → Ability to attract new targets thanks to impeccable service.
⏱️ 4. Guaranteed time savings
Managing a hotel is a time-consuming and demanding task. By delegating these tasks to a specialized company, owners free up their time to concentrate on other projects or investments. The advantage: they can rely on experts, with the certainty that their establishment is in good hands.
⚖️ 5. An opportunity to reduce the IFI
By collaborating with a hotel management company via assistance or commercial management mandates, owners retain the commercial character of their establishment.
This prevents it from being reclassified as a property subject to the Impôt sur la Fortune Immobilière (IFI), which applies to assets in excess of 1.3 million euros.
A significant financial advantage.
📈 6. A performance-driven model
Hotel management companies often adopt a performance-based remuneration system. How?
A portion of their fees is directly linked to the establishment’s financial results and customer satisfaction.
Their mission: to maximize profitability while delivering quality service. This model ensures that the interests of the owners and the management company remain aligned.
Why is this model booming ?
The success of hotel management companies is based on growing needs in the sector: 1. Digitization: owners need to adopt modern tools to stay competitive, but often lack the time or expertise. 2. Increased competition: the hotel industry needs to reinvent itself to attract new customers in the face of players like Airbnb. 3. Focus on profitability: owners are looking for turnkey solutions to maximize their profits without getting involved in day-to-day management.
Conclusion: Is this the solution for your hybrid hotel or apartment ?
Whether you own a hotel, residence or hybrid apartment, opting for a hotel management company can be an ideal solution to: → Improve the overall performance of your establishment. → Offer an exceptional customer experience. → Maximize your profits while minimizing your constraints.
At Frenchospitality, we support owners in the complete management of their establishments to ensure optimum customer satisfaction and sustainable profitability.
Contact us today to discuss your plans and find out how we can turn your facility into a real success.
