Our Hospitality Brokers Give Advice on Outsourcing Hotel Management Part Two

In Part One of our two-part blog series on outsourcing management, our hospitality brokers discussed the benefits that could come of it. These benefits included getting the best talent, not having to be hands-on all the time, the ability to cut the contract if it isn’t working, and potential cost savings. While these are all huge benefits, we can’t discount the potential downsides of outsourcing your management. Today in the Southeast International Hotel Brokers blog, our hospitality brokers break down the downsides of outsourcing.

Cons of Outsourcing Management

Here are some of the biggest disadvantages that our hospitality brokers have noticed.

• Less Control – Although one of the benefits was being able to have a hands-off approach, this can be a downside as well. If you like to have particular control over the way your hotel is run, then outsourcing might not be the best option for you.
• Security – When you take on an outsourced management company, you have to trust them with certain aspects and data that has to do with your business. Not all owners feel comfortable doing this. Although it’s not really a problem if the company is well-rated, it can still be difficult handing this information over.
• It Isn’t Always an Option – One of the simplest disadvantages of outsourcing your management is it isn’t always possible. Obviously, if you run an independent hotel, you can do whatever you want for staffing. But if you’re a franchised property owner, corporate will probably have guidelines as to whether or not this is an option.
• Company Culture – It’s difficult to maintain a certain company culture if you’re not there to control it. Typically, this will be subject to the outsourcing company instead. If you’re looking to create a certain company culture, you may be better off hiring and managing in-house.

Although there aren’t a ton of disadvantages, they’re still worth considering. If any of the disadvantages seem like too big of an issue to overcome, you’re probably better off hiring management and doing everything in-house.

Hospitality Brokers You Can Trust

If you’re looking to buy or sell your hotel, choose the hospitality brokers you can trust. The team at Southeast International Hotel Brokers has extensive knowledge and experience, and our vast network will help connect you to quality buyers and sellers. Contact us today for more information and to speak with our hospitality brokers. We look forward to working with you.