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Caterer & Hotelkeeper Magazine

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Better management and owner working partnerships likely

Chris Druce
Thursday 14 October 2004 17:43
Hotel management companies and owners will forge stronger working partnerships in the future, according to Christopher Eddis, director of Mornington Capital.

Eddis told the summit that over the last 30 years owners had had a rough ride, taking the full brunt of the capital risk while being fleeced by operators and a multitude of onerous management charges.

But following a number of recent high-profile court cases in the USA ruled in favour of owners, Eddis said the balance of power was now shifting in Europe.

As a result, the owner and operator relationship is being clarified to benefit both parties and the industry, and more stringent agreements are being drawn up.

"We're moving into a situation where the operator is now a partner, not a parasite," said Eddis. "More specialised hotel owners are entering the European market, which is good, and the industry is attracting a broader range of investors, who demand greater balance."

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