Project Scope

Horwath HTL was engaged to conduct a comprehensive Management Contract Review for Ascott, one of the world’s leading serviced residence and hospitality operators. The review aimed to evaluate the terms of an existing management contract to ensure it aligned with the client’s strategic goals, operational needs, and financial interests, while maintaining a balanced relationship with the property owner.

Our approach involved a detailed analysis of the contract’s key components, including fee structures, performance benchmarks, branding obligations, and termination clauses. Particular attention was given to the management fees and incentive structures to ensure they reflected fair market practices and incentivised strong operational performance.

We assessed compliance with industry best practices and benchmarks, identifying any provisions that could present potential risks or limitations for Ascott in managing the property effectively. This included evaluating the allocation of operational responsibilities, owner and operator obligations, and provisions for dispute resolution.

To provide actionable recommendations, Horwath HTL benchmarked the existing contract against similar agreements within Ascott’s portfolio and the broader serviced residence sector. This helped identify areas for negotiation or adjustment, such as improving financial terms, refining key performance indicators (KPIs), or clarifying ambiguities that could lead to future disputes.

The outcome was a detailed report outlining the strengths and weaknesses of the current agreement, alongside practical recommendations for renegotiating terms to enhance operational flexibility, protect Ascott’s brand integrity, and ensure mutually beneficial outcomes.

Through this engagement, Horwath HTL empowered Ascott with the insights and strategies needed to optimise their management contract, aligning it with their long-term business objectives while maintaining strong relationships with property stakeholders.

Project Location

Kuala Lumpur, Malaysia