School of Hospitality Administration , “ It ’ s not the brand against the TPMC — each has a clear role to play and it is a symbiotic relationship .”
There is no right or wrong answer to choosing a brand or TPMC , said Greg Mount , founder of Victory Hotel Partners ( parent company of Hay Creek Hotels and Restaurants ), adding that the decision will be impacted by many factors , ranging from an owner ’ s personal preference for access to the specific market and segment .
TPMC v . BRAND While nimbleness continues to be a central argument for an owner to contract a TPMC , the larger they become the more leverage they have as being better custodians for owners . Keith Oltchick , chief development officer for Remington Hospitality , said his company brings multiple disciplines that might have been the province of a brand in the past , such as a competitive business intelligence tool that has actually won the company some deals .
There is debate about capabilities , said Mount , with brand managers and thirdparty operators each possessing their own kinds of talent . Typically , a third-party manager ’ s brand knowledge will be much more diversified , since they likely manage a variety of flags , and they know the strengths and weaknesses of the other brands in the marketplace .
The Hotel Hartness in Greenville , S . C ., managed by Hay Creek Hotels .
Chris Green , president of Remington Hospitality , said that operations are a tough business and the ultimate goal of a brand is to grow as long as standards are upheld , while operating hotels is not a historic path to rapid growth .
Of course , the industry is changing with growing emphasis on issues like sustainability and technology . While brands might have more resources when it comes to some of these responsibilities , TPMCs , said David Hart , CEO of RBH Hospitality Management , a U . K . -based management company , can be more agile here , too . “ Certainly , our teams are focused on ESG because that ’ s what our clients are focused
AN OWNER MENTALITY IN THE THIRD-PARTY MANAGEMENT SPACE MUST INCLUDE THE ABILITY TO CHALLENGE SOME COSTS ASSOCIATED WITH OR PRESCRIBED BY THE BRAND
– ERIC DANZIGER , CEO , RESOLUTE ROAD HOSPITALITY
on ,” he said . Maybe the biggest reason owners choose a TPMC is flexibility , according to Richard Jones , COO for Atlantabased HVMG . Although the company ’ s managed properties have to maintain brand standards , that flexibility , he argued , “ brings a lot of value .”
As an example , at the beginning of the pandemic , HVMG was positioned to move quickly based on the individual needs of each hotel .
Still , said Jones , over the last couple of years , his company ’ s relationships with brand partners have become tighter . “ We are not here to compete with the brand ,” he said . “ We want to be seen by brands as one of their best operators . If we have a problem to solve , we have that relationship capital , so the owner gets the best of both worlds .”
Eric Danziger , who has grown multiple brands in his long career with Wyndham , Starwood and others , recently became CEO of Resolute Road Hospitality , a TPMC . He said the key difference between brand and third-party management is the balance between managing for the owner and managing for the brand . “ An owner mentality in the third-party management space must include the ability to challenge
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