.svg){kind=icon}
Hotel owners play a pivotal role in the hospitality industry, influencing everything from service standards to hotel operations. Whether they oversee a luxury hotel chain, boutique inn, or budget-friendly lodging, their decisions shape guest experiences and drive the overall success of the property. From managing hotel prices and room availability to optimizing hotel reservations, hotel owners are key in maintaining high standards that impact both guest satisfaction and the competitive position of their hotels.
In this blog, we’ll explore how hotel owners shape the hospitality experience through strategic decisions in hotel management, staffing, and technology investments. We'll also examine their role in setting service standards, managing online reputations, and ensuring that every aspect of hotel operations—from booking systems to room quality—meets guest expectations.
What is the owner of a hotel called?
The owner of a hotel is often referred to as a hotelier, a term used broadly in the hotel industry to describe those who manage or operate hotels. Whether they own independent hotels, franchises under brands like Hilton, Marriott, or Hyatt, or are part of large hotel chains, hoteliers play a critical role in ensuring that hotel operations—from hotel booking to catering—run smoothly. They are involved in decisions related to hotel prices, loyalty programs, and acquisitions that shape the guest experience across their hotel portfolios.
Hoteliers may work closely with a hotel management company or operate their properties directly, overseeing everything from hotel reservations to room quality. In the case of franchises, hotel brands like Hyatt or Marriott provide the overarching framework, while the hotel owner manages the day-to-day aspects of the business. Owners of independent hotels or inns have more autonomy, often shaping unique hospitality experiences tailored to their specific lodging.
What are the three types of hotel ownership?
Hotel ownership plays a critical role in shaping the operations, branding, and guest experience across the hospitality industry.
a. Independent ownership
Independent hotels are properties that are not affiliated with major hotel chains or franchises. In this type of ownership, the hotel owner has complete control over hotel booking, pricing, and overall operations. Independent hoteliers like Hersha and David operate their hotels without the constraints of a larger brand, allowing for unique hospitality experiences that reflect their personal vision. These hotels often rely on online travel agencies like Expedia Group, Orbitz, and Travelocity to drive bookings and maintain visibility in the competitive hotel industry.
With greater autonomy, independent hotels can customize their loyalty programs, catering services, and guest experiences based on their specific location, clientele, and market trends.
b. Franchise ownership
Franchise hotel ownership allows individual owners to manage their hotel properties under the umbrella of major hotel brands like Hilton, Marriott, or Hyatt. These owners benefit from the brand recognition and marketing power of established names, attracting guests who prefer the consistency of well-known hotel chains. While franchise owners retain control of their hotel business, they must operate under the guidelines and standards set by the hotel brand. This includes maintaining specific hotel prices, and room quality, and adhering to brand loyalty programs like Hilton Honors or Marriott Bonvoy.
Franchise ownership offers a blend of autonomy and support, enabling owners to leverage the resources of global brands while running day-to-day operations. In our blog, How to Optimize Google My Business for Franchises: 7 Important Steps we've discussed how you can optimize the online reputation of your franchise.
c. Chain ownership
Chain ownership refers to hotels owned by large corporations like Marriott International, Hilton Hotel Corporation, or Accor, which operate multiple hotels around the world. These hotel chains manage vast portfolios, with some companies owning hundreds or even thousands of hotels across various segments, from budget inns to luxury lodging. In a chain ownership model, the parent company oversees the operations of all properties within its portfolio, setting consistent standards across the board. Hotel prices, room designs, and loyalty programs are typically standardized to ensure a unified brand experience.
Major hotel chains often work with travel booking platforms like Expedia Group and Orbitz to streamline hotel bookings, catering to a global audience through both direct and third-party booking sites.
What are the responsibilities of a hotel owner?
A hotel owner's responsibilities extend across multiple facets of the hotel business, ensuring the property operates efficiently and meets the evolving needs of the hospitality industry.
a. Financial oversight
Hotel owners are responsible for the financial health of their properties. This includes budgeting, setting competitive hotel prices, managing expenses, and maximizing profitability. Owners must also oversee revenue management strategies, working with hotel management companies to optimize room rates and ensure a steady flow of hotel bookings through online travel agencies like Expedia Group, Orbitz, and Travelocity.
Discover the top 7 revenue management solutions for hotels to enhance profitability in our article: 7 Best Hotel Revenue Management Systems: An In-Depth Comparison
b. Strategic planning
Setting long-term goals is a critical aspect of hotel ownership. Owners establish visions for the hotel’s future, including potential expansions or renovations. Strategic planning also includes developing partnerships, exploring new market opportunities, and anticipating industry trends. David Litman and Robert Diener, co-founders of Hotel ReservationsNetwork (previously HRN now known as hotels.com) and Getaroom.com, exemplify the power of strategic planning in the hotel industry. In 2008, they launched Getaroom after HRN, a hotel booking website that focused on offering hand-picked hotel deals in major cities, reshaping the way hotel owners approach competitive pricing and market differentiation.
Whether operating large hotel brands like Marriott International or independent hotels, owners must continuously innovate and adapt their strategies, incorporating loyalty programs and utilizing booking platforms like Expedia Group and Travelocity to drive hotel bookings and maintain relevance in the ever-evolving hotel industry.
Optimize your hotel’s financial success with actionable insights and adaptive approaches in our article: Best Hotel Pricing Strategies to Maximize Margins & Revenues
c. Property maintenance and investment
Regular property upkeep and investment in upgrades are crucial responsibilities for hotel owners. They must ensure that facilities are always in top condition to remain competitive with major hotel brands like Hilton and Hersha. Proper maintenance not only enhances guest satisfaction but also protects the long-term value of the property. Typically, hotel staffing models allocate one maintenance employee per 60 rooms, requiring owners to strategically manage resources while maintaining high standards.
d. Branding and marketing
Whether overseeing a global hotel chain like Hyatt or a boutique property, hotel owners play a pivotal role in shaping the brand’s identity and market positioning. They collaborate with marketing teams to boost visibility on booking sites like Litnam and increase hotel reservations. Developing loyalty programs, similar to Marriott’s Bonvoy and Hilton’s Honors, helps build long-term guest relationships and attract frequent travelers.
In the global economy-class hotel market, only 54% of hotel rooms are branded. Branding in the hotel and hospitality industry is crucial for fostering brand loyalty and securing a competitive edge.
Read our article Winning Hotel Marketing Strategies for 2024 to learn how you can enhance your hotel's visibility, guest satisfaction, and bookings with expert tips tailored for different hotel types.
{{blog-cta-video="/features/product-updates"}}
e. Legal and regulatory compliance
Finally, hotel owners must ensure that their operations comply with legal and regulatory standards. From safety regulations to labor laws, adherence is key to avoiding fines and maintaining the hotel's reputation in the competitive hotel industry. Whether the hotel is part of a large franchise or an independent establishment, owners are responsible for upholding the standards of the hospitality sector.
How does a hotel owner influence guest experiences?
Hotel owners play a crucial role in shaping the overall guest experience, from the moment a guest books a room to the completion of their stay. Whether managing independent hotels or overseeing a large hotel chain like Marriott or Hyatt Hotels Corporation, owners are deeply involved in ensuring that service quality, hospitality, and technology align to create exceptional experiences. The decisions they make regarding hotel pricing, loyalty programs, and marketing strategies impact guest satisfaction and long-term loyalty, which are key factors in a highly competitive hotel industry.
How do hotel owners shape service standards and culture?
Hotel owners set the tone for service quality and establish a customer-centric culture across their properties. In both independent hotels and major brands like Hilton and Accor, owners collaborate with hotel management companies to ensure that their team operates with the highest standards of hospitality. By focusing on staff training, consistent service, and personalized interactions, owners can significantly enhance guest satisfaction.
Owners also influence the creation of loyalty programs, like Marriott Bonvoy, which encourage repeat business by fostering deeper connections with guests. Ultimately, their leadership defines the service culture that guests experience during their stay.
How do hotel owners invest in technology to improve guest satisfaction?
In today’s digital age, hotel owners are increasingly investing in advanced technologies to improve guest experiences. By adopting CRM systems, hotel booking software, and mobile check-in solutions, owners streamline operations and enhance the convenience factor for travelers. Brands such as Hyatt Hotels Corporation and independent properties alike have integrated smart room features, enabling guests to control lighting, temperature, and entertainment systems via mobile devices. To learn more about them, read our article: The Future of Hotel Technology: Must-Have Tools and Solutions for Modern Hotels
Owners also leverage booking sites like Litnam and Diener's HRN Hotels.com and online travel agencies such as Expedia Group to optimize room reservations and boost visibility in the market. These investments in technology not only elevate guest satisfaction but also ensure that hotels stay competitive within the dynamic hospitality industry.
{{blog-cta="/features/product-updates"}}
How does a hotel owner impact staffing and management?
Hotel owners have a profound impact on staffing and management, shaping everything from leadership selection to employee training and operational efficiency.
a. Hiring and leadership
Hotel owners play a pivotal role in shaping the staffing and leadership structure of their properties. They set criteria for leadership roles, ensuring that individuals in these positions align with the hotel’s brand values and operational goals.
For instance, in major hotel chains like Hyatt or Marriott International, owners collaborate with hotel management companies to establish rigorous hiring standards and recruit experienced leaders who can drive the hotel’s success. Their influence extends to defining the qualities and expertise required for key positions, which directly impacts the overall effectiveness of the hotel’s management team.
b. Streamlining operations and collaborations
Owners significantly impact the efficiency of hotel operations through their relationship with management teams. This collaborative dynamic is crucial for seamless decision-making and effective problem-solving. By fostering a relationship built on trust and open communication, owners and management teams can work together to streamline operations, address challenges, and implement strategies that enhance hotel performance.
For example, an owner’s decision to work closely with management on optimizing hotel prices and improving booking processes can directly affect guest satisfaction and profitability.
c. Staff training and development
The influence of hotel owners on staff training and development is substantial. Owners often set the direction for training programs, ensuring that staff members are equipped with the skills and knowledge necessary to deliver exceptional hospitality. This includes creating development opportunities that align with the hotel’s brand standards and operational needs.
In the case of large hotel brands like Hilton or Accor, owners might support initiatives that enhance staff competencies in areas such as customer service, technology use, and cultural sensitivity. By investing in staff growth, owners contribute to a positive work environment, which in turn enhances guest experiences and drives the hotel’s success.
How does a hotel owner manage an online reputation?
Managing a hotel's online reputation is crucial for maintaining a positive image and driving bookings.
a. Responding to guest reviews
Proactively engaging with guest reviews is essential for managing a hotel’s online reputation. Hotel owners must address both positive and negative feedback on platforms such as Expedia Group and Marriott’s booking site. This engagement demonstrates a commitment to guest satisfaction, enhancing public perception, and fostering customer loyalty.
For instance, responding thoughtfully to a review can turn a negative experience into a positive one, showing potential guests that the hotel values feedback and is dedicated to improving their experience. This practice not only builds trust but also encourages more guests to book hotel rooms, knowing their concerns will be heard.
b. Maintaining a strong online reputation
A hotel’s online reputation significantly impacts its bookings and revenue. A strong presence on travel booking sites, like Hyatt Hotels Corporation’s or Hilton’s platforms, can attract more travelers and increase reservations. Conversely, a weak or negative online reputation can deter potential guests and diminish revenue.
For example, consistent positive reviews and a proactive approach to addressing issues can enhance a hotel’s image and boost its position in search results. As highlighted by industry leaders like David Litnam and Robert Diener, managing this reputation effectively is crucial for sustaining competitive advantage in the hotel business.
How MARA AI’s online reputation management helps hotel owners build a strong reputation
Responding to online reviews is an essential part of online reputation. It can truly be a daunting task, but it doesn't have to be with our AI Review Assistant of MARA. This intuitive tool is designed to ease your Online Reputation Management process, making it more efficient, personalized, and time-saving. It offers the best and most personalized AI for responding to and analyzing your guest reviews.
Streamlined Review Inbox
One of the key features of this tool is the Review Inbox. Your review inbox makes responding to reviews as simple as hitting "Generate reply" and clicking "Send". The Review Inbox connects to multiple review sources, including Google, Booking.com, and Tripadvisor, giving you a panoramic view of all your reviews. And you can even configure review response automation: Why not allow MARA to automatically respond to simple reviews, like 5-star Google reviews with no text, ensuring you never miss a review? Daily notifications about new reviews keep you updated and in control.
Advanced Review Analytics
To help you understand and analyze the multitude of reviews, the Review Assistant also incorporates Review Analytics. This provides actionable, easy-to-understand insights that are tailored exclusively to your business. With MARA, you can quickly get the gist of all your reviews without needing to read each one. The analysis is so detailed that you can find out about specific issues like "water in the pool is too cold" or "lack of vegan breakfast option”. These insights help optimize guest experience without requiring you to be a data expert.
The most personal response AI
MARA's AI isn't just about efficiency; it's about personalization too. The Brand Voice feature allows the AI to adapt to your tone, making sure your responses sound authentically you. Plus, with Smart Snippets, you can "teach" the AI how to respond to recurring praises or complaints. Your AI then incorporates this information into its responses, but always with different words, providing more personalized, relevant replies.
This review response assistant has quickly become a game-changer for over 2000 customers. Its promising capacity to elevate your overall rating, amplify response rates, glean insights from customer feedback and economize both time and money, is the reason behind its growing popularity.
Managing online reviews need not be an overwhelming task. With the appropriate software, not only can you streamline the process, but you can also personalize your responses, and derive valuable insights from the reviews. So, why hesitate to give our AI Review Assistant, MARA, a try? It's completely free for testing, doesn't require a credit card, and can be fully operational in less than five minutes.
Final Thought
In the competitive landscape of the hotel industry, hotel owners play a crucial role in shaping both the operational and experiential aspects of hospitality. From setting high service standards and investing in technology to managing an online reputation and strategic staffing, their influence extends across every facet of the business. By leveraging online travel agencies like Expedia Group, adopting robust loyalty programs, and continuously adapting to industry trends, hotel owners can enhance guest satisfaction, optimize hotel bookings, and drive business performance. As they navigate the complexities of independent hotels and major brands, their strategic decisions ultimately define the success of their properties in the ever-evolving travel market.
This post is part of our hero content series on "The Complete Hotel Management Guide: From Operations to Guest Experience”
Frequently Asked Questions:
A hotel owner is responsible for overseeing the financial performance, strategic direction, and operational standards of their property. They set policies, manage investments, and ensure the hotel aligns with brand standards and guest expectations.
Hotels can be owned by individuals, investment groups, or large hospitality corporations. Examples include independent owners, franchisees, and chains like Marriott and Hilton, as well as investment firms such as White Lodging.
While individual hotels may not have a CEO, hotel chains and large hotel management companies do. For example, Marriott International and Hilton Hotel chains have CEOs who oversee multiple properties within their brands.
The head of a hotel is typically the General Manager (GM), who is responsible for daily operations, staff management, and guest satisfaction. In larger hotel chains, the GM reports to higher executives within the corporate structure.
The highest position in a hotel is often the General Manager (GM) for individual properties. For hotel chains and large groups, senior executives such as CEOs or Presidents of the company hold the top leadership roles.
