International Operator or Brand Search and Selection

The presence of an international brand on a hotel’s façade automatically boosts its market value, guest confidence, and average daily rate (ADR). However, signing a contract with a global chain is always a long-term commitment, where a mistake at the outset can prove extremely costly for the owner.

ArtBuild Hospitality supports investors throughout the negotiation process with international operators (Hilton, Hyatt, Best Western, Radisson, Marriott, Accor, and others).

We know the inner workings of these brands and help secure a deal on terms that benefit the owner, not just the chain.

Why do you need a consultant?

The standard contract sent by the brand (Letter of Intent / Term Sheet) always protects the chain’s interests. Our role is to act as a professional negotiator. Since 2006, we have been working with the world’s leading hotel chains, so we understand where the brand might be willing to compromise.

What we optimize:

• Base Fee & Incentive Fee: reducing the operator’s commission rates.
• Termination Clause: terms for terminating the contract without onerous penalties.
• Technical Services Fee: optimizing the cost of technical support.

No matter how prestigious a hotel chain’s name may be, a standard contract is just the beginning of the conversation. With the right approach, we negotiate terms that save the investor hundreds of thousands of dollars over the life of the agreement.

Three partnership models: which one is right for you?

There is no one-size-fits-all solution; we will select the model that aligns with your ambitions regarding control over the business and your willingness to invest.

1. Direct Management (Management Agreement)

The owner is a passive investor. The hotel comes under the brand’s full control.

Advantages: high standards, minimal hassle for the owner.

Disadvantages: high fees, the owner has almost no influence over operating costs.

2. Franchising (Franchise Agreement)

The owner purchases the right to use the brand, reservation system, and marketing, but manages the hotel independently.

Advantages: lower royalties, full control over cash flow.

Disadvantages: the owner must have a strong professional team to meet the brand’s standards.

3. Management Agreement / Third-Party Management

The most flexible and popular model today, where the owner purchases a franchise from a well-known brand (such as Best Western) and delegates management to a professional third-party management company (such as ArtBuild Hospitality).

Advantages: You gain a well-known name and professional management, which costs less than a direct contract with the brand.

Disadvantages: The most complex contract structure, high costs for the operator’s services in the first years of operation.

Our Experience: More Than Just Consultants

ArtBuild Hospitality holds a unique position in the Ukrainian market – we are active partners and operators of international brands:

• For a long time, we were the only partner and official representative in Ukraine of Best Western International (USA), one of the world’s largest hotel chains;
• in 2022 (during the war), ArtBuild Hospitality opened and took over management of Ukraine’s first Best Western Plus Market Square Lviv hotel, demonstrating our ability to meet the highest international standards even in crisis conditions.

We have gone through the entire process – from negotiations, renovation, and construction to the day-to-day operational management of a global brand hotel. That is why we know exactly how this business works from the inside.