Mihran Kalaydjian Hospitality Advisors
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Fee Structure
 
Our philosophy regarding our compensation is fundamentally that we make every attempt to create a situation where our clients never question our motivations. We try to align our fee structure to the owner's financial goals.

Management Contracts

We prefer to divide Management Fees into two parts. The Base Management Fee is intended to cover our basic costs of providing our services. An Incentive Management Fee ties our profitability to the results of our efforts as shown in the profitability of the hotels we manage.

Base Fee

This is usually a percentage of Total Revenues, or a minimum monthly amount, whichever is greater. The percentage ranges from two to four percent

Incentive Fee
 

Once the owner’s financial goals for the hotel are understood and
achievable results are agreed to, an Incentive Management Fee is negotiated which relates to those goals.

Asset Management

Fees are also divided into two parts. The Base Asset Management Fee is intended to cover our basic costs of providing our services. An Incentive Asset Management Fee ties our profitability to the results of our efforts as shown in the profitability of the hotels we manage.

Base Fee

This is usually a flat monthly amount based on the services provided.

Incentive Fee

Once the owner’s financial goals for the hotel are understood and achievable results are agreed upon, an Incentive Asset Management Fee is negotiated which relates to those goals and our level of influence over management.