Either the owner or a third-party hotel management company can be the hotel operator,

responsible for a hotel's management and operational performance. A hotel management

company manages and operates the hotel on the owner's behalf, ensuring it is properly
staffed, provides good service, and is profitable.

Owner-operators directly control the hotels they own and are responsible for the
management and day-to-day operations – personnel, financial and procurement management
– and financial performance of their hotels. The hotel properties are operated under the
owner's name or through affiliation to a marketing consortium.

An independent hotel is operated by the property owner or an independent

operator. Independent operators are unaffiliated third-party management companies that run
hotel properties either unbranded or under some other brand on behalf of the hotel owners.

A brand management company is a hotel company that operates hotels under its brand,
commonly under different "flags", for which it collects a brand fee. The properties are
operated under a management contract by a brand manager or franchise agreement by local
partners or the hotel owners.

A managed hotel is a property that is fully managed and operated by a brand management
company for the hotel owner under one of its brands. The brand manager is responsible for
the management and operation of the hotel, while the hotel owner only has the right to
monitor its performance.

The owners of franchised hotels (franchisees) sign a franchise agreement with a hotel brand
(franchisor) to operate the property under a franchise agreement in exchange for a franchise
fee. For this operating model, hotel owners set up their own team or engage an independent
operator to run the hotel.

Sustainability in Hotel Operations

Sustainable hospitality is the application of sustainable practices in hospitality and hotel
operations and compliance with environmental, social and governance (ESG) principles.
Hotel operators have a direct interest in promoting sustainable hospitality principles and
practices throughout hotel operations to keep operational costs low, meet guest demand,
protect brand reputation, and further business continuity.