The hotel industry in the Middle East is growing rapidly, with new hotels popping up all over the region. However, there has been a recent trend of hotels introducing third-party hotel management companies. In this blog post, we will discuss some of the benefits of hiring a third-party management company.
What is Third-Party Hotel Management?
Third-party hotel management is when an owner franchises or creates a hotel brand and outsources the operation of said property to a third-party company. The advantages of this are that it can allow the owners to tap into the expertise of the third-party management company and ensure that the operation of this property is in line with their goals and vision.
The benefits of third-party hotel management
The benefits of third-party hotel management have been widely discussed and debated in the hospitality industry. However, there are a number of compelling reasons why this type of management can be advantageous for hotels in the Middle East. One of the key benefits of third-party hotel management is the ability to tap into a wealth of experience and expertise. Hotel management companies have teams of experienced professionals who can provide valuable insight and support to hotel owners and operators. This can be particularly beneficial for new or inexperienced hoteliers as well as owners looking to improve and grow their operations while maximizing the resources required to effectively manage a property. Another benefit of third-party hotel management is the increased efficiency and productivity that can be achieved. Hotel management companies often have systems and processes in place that allow them to manage properties more efficiently. This can lead to reduced operating costs and improved guest satisfaction levels. Lastly, third-party hotel management can provide greater flexibility when it comes to marketing and branding initiatives. Hotel operators and owners working with a management company will often have access to a wider range of marketing tools and resources. This can help hotels to better promote themselves and reach a wider audience.
The challenges of third-party hotel management
The third-party hotel management system is a relatively new concept in the Middle East and has been met with some challenges. One of the main challenges is that there is a lack of understanding of the system from both hoteliers and investors. This lack of understanding can lead to unrealistic expectations and misunderstandings about the role of the third-party manager. Another challenge facing third-party managers in the Middle East is the issue of culture. There is a wide range of cultures and customs in the region, which can make it difficult to find a management company that is a good fit for a particular hotel. In addition, language barriers can also be an issue, as many third-party managers are not native Arabic speakers.
The future of third-party hotel management in the Middle East
The future of third-party hotel management in the Middle East will be very exciting. The region is primed for rapid growth and there is a great demand for quality hotels. The introduction of third-party hotel management will help to meet this demand and bring more international brands to the region as well as promoting the growth of home-grown brands. There are many challenges that need to be addressed in order to make this happen, but the potential rewards are great. The Middle East is an amazing place with so much to offer visitors from all over the world. With the right approach, it can become a leading destination for tourism and business travel.
Dex Squared Third-Party Hotel Management
Dex Squared Third-Party Hotel Management exclusively focuses on the owner’s key objectives and will run the property with the owner's best interest in mind. Simply our team becomes an extension of the owner's team which is very different when compared to the brand-operator-owner relationship.​
The Dex Squared Management team is well-experienced within the MEA hospitality landscape and has a full understanding of the standards of almost all the brands that are currently present in the region. ​
This would secure that Dex Squared will be able to deliver the number one concern of the brand owner, being the consistency of both quality and service.
Learn more about Dex Squared’s hospitality management services: