Manchise Contracts have been adopted by Citymax Hotels as a new management concept for hotel owner/developers in the Middle East, offering flexible solutions as an alternative to traditional long term management agreements.
Citymax Hotels chief operating officer Russel Sharpe explained: “As owner-operators ourselves, we understand both sides of the management agreement equation, and have developed a new Management Franchising model to appeal to owners and developers of hotel projects in the region who do not necessarily wish to tie themselves to a management company for the next decade or longer, and who wish to have some involvement with the running of the hotel.”
HE added: “Within this business model, Citymax Hotels will fully manage the new property for three years, establishing the brand concept, operating procedures, marketing mix, training procedures and run the hotel.
“After the three year period, once the hotel is established and successful, the owner will be able to resume management under a franchise type of arrangement.
“Manchise Contracts offer the owners the best of both worlds – a reputable hotel brand with a proven business model to launch and establish the hotel, without the long term ongoing costs and limitations of a fully-fledged management contract.”
The Manchise Contract is a hybrid between the management contract and a franchise agreement, and ideal for budget and mid-market hotels where owners may be more closely involved with the day-to-day running of the hotel.
Currently it is used as a business model in China, India and Europe, but is not yet common in the Middle East.
Sharpe continued: “This is not a new concept for the Middle East, but one which we expect to appeal to regional owners.
“It gives new entrants into the industry the opportunity to learn the business without jeopardizing their investment, and once the hotel operation is beginning to stabilise and mature, the owner will also be ready to run it as he wishes.”
Citymax Hotels is part of the hospitality division of Landmark Group, with three hotels located in prime locations in Al Barsha, Bur Dubai, and Sharjah.
The mid-market group of hotels is a much favoured and popular business model offering a quality experience at an affordable price.
As the largest of the three properties, Citymax Hotel Bur Dubai is located in the heart of Dubai’s historical district and offers 691 contemporary and comfortable rooms.