Future-Proofing Hotel Deals: Myth or Must-Have? This evening I had the pleasure of attending a panel hosted by Keystone Law on a topic at the heart of hospitality investment: are “future-proof” hotel deals a myth, or a must-have?
The discussion brought together perspectives from across the ecosystem – Timothy Walton (Marriott International), Winston Zahra (Troo Hospitality), Alyona Antonenko of Keystone and Jens Blomdahl (KSL Capital Partners) – offering an honest look at the tensions and opportunities in today’s hotel agreements.
A few key takeaways stood out:
🔑 Alignment is everything. Owners want ROI. Brands want investment that delivers an experience. Operators want flexibility. Striking the right balance – matching the right brand to the right building, with the right mindset – remains the cornerstone of a successful partnership.
📜 Management, franchise… or “manchise”? The traditional lines are blurring. Marriott highlighted the growing use of hybrid agreements that begin as management contracts with a pathway to franchise, depending on triggers like a sale. Owners welcome the flexibility, while brands seek the comfort of at least five years’ management.
💰 Fees and transparency. Fee structures are often contentious. Marriott has started moving toward bundled fixed fees – easier for owners to understand, but still complex to negotiate. As Winston Zahra pointed out, the more transparent the model, the better.
📊 Performance clauses – more than just RevPAR? Performance testing is increasingly demanded by owners, though brands are cautious. Interestingly, we heard of cases where guest satisfaction scores – not financial metrics – were the benchmark. Alyona raised the point that future tests may also need to capture ESG performance, not just revenues.
⚖️ Future-proofing through flexibility.
From pandemics to regulatory shifts to AI, unpredictability is here to stay. The consensus? It’s less about drafting contracts that anticipate every scenario, and more about building mechanisms for dialogue, adaptation, and trust. As Jens Blomdahl put it: agreements need mindset shifts, not just more clauses.
One closing remark that stuck with me: “You can have all the clauses in the world, but at the end of the day, it’s about finding solutions.”
Thank you to Alyona and the team at Keystone for the invitation and for bringing together such an insightful discussion.
