Hotel Ownership Strategy

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Hotels ownership strategy changes in recent years with lower ownership and inceasingly higher management contracts and and franchise operations Lease agreements are arranged between hotel property owners or partners and another company paying rent to the ownereal estate investment trusts (REITs) and private equity (PE) funds have led to changes of ownership structure within the hotels and restaurants sector. 6 These investments are able to facilitate development of real estate by improving buildings and surrounding land. In the HCT sector, the separation between ownership and management has increased the rate of mergers and acquisitions impact of ownership changes in the sector varies from country to country and is linked to diverse corporate…show more content…
15 As an example, Starwood Hotels & Resorts (Sheraton, Westin, Méridien, Four Points) has hotels in 23 EU Member States. However, EFFAT reports that only seven of the 23 countries are represented in the EWC. Hiltons‘ renegotiated EWC agreement would further exclude managed and franchised hotels from the scope of the agreement, which would represent a decrease in EWC coverage from 22 to ten…show more content…
This can result from frequent and rapid ownership changes mainly focused on short-term performance- driven demands. Maximum flexibility may be required due to rapidly changing ownership, leading to restructuring, outsourcing or casualization to cut costs. This can make it difficult to ensure continuity of employment terms and conditions. Workers also fear that values and mission statements articulated by global chains are often not transferred into practical application in hotel workplaces. As transnational hotel chains are using more and more ―asset light‖ strategies, a substantial proportion of staff working in international brands are often excluded from information and consultation rights beyond the local level. Among these strategies for example are moving from ownership and leasing of hotels to management and franchise contracts, outsourcing or subcontracting major parts of the enterprise. In response, employers are encouraged to reiterate the importance of social dialogue within the sector, enhance training programmes and skills development, promote 14 Personal communication from an EFFAT member to the ILO, 30 June 2010. 15 See: European Union: Directive 2009/38/EC of the European Parliament and of the Council of 6 May 2009 on the establishment of a European Works Council, http://eur- 25 May

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