Should a new hotel owner hire a general manager or run it themselves?
The choice depends on what the seller did personally, whether the financial statements already carry a manager’s wage, and what the brand or lender expects. Learn the current setup first, consider keeping the existing manager through the handover, and decide what reporting you would need if you stay hands-off.
Buyers often picture themselves as the owner and assume a manager will handle the rest. Others plan to work the property themselves. Both can work, but the choice should rest on how the hotel runs today, not on a preference formed before you have seen the operation. Start by finding out who does what now.
What the seller does personally
Ask the seller to list their regular duties and the hours they put in. In some hotels the owner is the general manager in everything but title. In others a salaried manager runs the property and the owner reviews reports. If the seller is the manager, the statements may not show a wage for that work, so a manager you hire later is a cost to understand with your accountant.
What the brand and lender expect
Some brands set expectations about who manages a property or what training that person holds. A lender may also ask who will run the hotel, particularly when the buyer has no hotel experience. Ask the brand and the lender early, so their answers shape your plan rather than surprise you late in the process.
Keeping the manager you inherit
If there is a manager already, think carefully before changing anything. That person knows the staff, the suppliers and the regular guests. Many buyers ask the manager to stay through the handover and agree how long and on what terms. A clear conversation early, with your lawyer on any written arrangement, helps keep both sides comfortable.
Staying hands-off
An owner who is not on site still needs oversight. Decide what you would want to see each week or month, such as occupancy, rates, review scores, maintenance logs and cash position, and who prepares it. A manager who reports well is easier to trust than one you only hear from when something goes wrong. Compare the arrangement with how an absentee owner of a holiday lodge handles the same question.
Related reading
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Buying
- Expert answerWhat should a new hotel owner do in the first months?
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- GuideBuying a hotel in Canada
- Expert answerFranchised or independent hotel: what should a buyer weigh?
- Expert answerWhich contracts should I review when buying a hotel?
- Expert answerWhat happens to a hotel’s brand when the hotel is sold?
- Expert answerWhat should a boutique hotel owner weigh before joining a brand collection?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 02Business Development Bank of CanadaGovernmentHow to reduce employee turnover
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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