Our Business

Our contract types


	Management contracts Under a management contract, Rezidor provides management services for the hotel owner in exchange for a fee. The business belongs to the owner, who is responsible for all investments in and costs of the hotel.	Franchise contracts Under a franchise contract, Rezidor authorise a hotel owner to operate its hotel under one of our brands in exchange for a fee. The owner has access to our reservations system and is provided with marketing support and other know-how to operate the hotel. To maintain brand image and value, franchisees are required to meet specified brand standards.	Lease contracts Under a lease contract, Rezidor lease a hotel building from a property owner or other partner and are entitled to all the benefits of, and carry the risks associated with, operating the hotel.
Brand, marketing, distribution, reservation, purchasing	Rezidor	Rezidor	Rezidor
Employees	Hotel owner	Hotel owner	Rezidor
Financial commitment by Rezidor	In some cases, performance guarantees	None	Rent - fixed or variable
Maintenance investments by Rezidor	None	None	4–5% of leased revenue
Revenue for Rezidor	Base fee as % of total revenue Incentive fee as % of GOP Marketing fee based on total room revenue Reservation fee based on no. of reservations	Licensing fee as % of total room revenue Marketing fee based on total room revenue Reservation fee based on no. of reservations	All revenue (room sales and F&B sales)
EBITDA margin	70–80%	50%	8–15%