The duration of our management agreements varies, but they are typically long-term, normally between 15 and 20 years.
Management Agreement
Under our management agreements, we provide management services for third-party hotel proprietors. We derive revenue primarily from base fees determined as a percentage of total hotel revenue and incentive management fees defined as a percentage of the gross operating profit or adjusted gross operating profit of the hotel operations. In addition, we collect marketing fees based on total room revenue, while for Regent and Missoni branded hotels, marketing fees are based on total revenue, and reservation fees based on the number of reservations made.