Establishing and Growing Strong Business Partnerships for Your Hotel
By Richard Takach, Jr. President & CEO, Vesta Hospitality | February 09, 2014
Some of relationships are, by their nature, short-lived. Others can last a lifetime. More importantly, some evolve into something more formal, a partnership, characterized above all by a written, legally enforceable contractual agreement. These partnerships in many ways define our organizations and are a key factor in our overall success and profitability. Thus, the ability to form successful partnerships, similar to how we build an internal team of executives and staff, is an essential function and distinguishing skill of all hotel executives.
In this article, we will consider methods and strategies in selecting business partnerships for a hotel. We will consider partnerships at the corporate level, specifically investors and other financial partners as well those at the operational level. The latter includes the many vendors, suppliers and strategic partners, including franchise affiliations and management agreements, upon which any hotel depends.
On Common Ground
Partnerships begin with knowing ourselves. What we need and are looking for in a partner. The style of relationship and, thus, partnership, that works best for us. The specific skills, experience, resources or assets that we require and what we are willing to "pay" for them. We must also develop or know what we expect from a partner in terms of returns on investment and/or performance and how these will be measured.
It is best to meet prospective partners in-person to better gauge compatibility and other intangibles that can make or break any relationship. Next comes the courtship period. For any partnership this is akin to a marriage, right down to the vows we call contracts. This prenuptial period is the time to get to know your potential partner better and ask any questions about the prospective relationship. It is also helpful-and a good sign-when our potential partner has questions that they ask of us. We invite such scrutiny.
All these preliminaries make for smoother, less stressful negotiations when it's time to conclude a formal agreement. Moreover, they help build a reserve of understanding and commitment to shared success for the future.
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