How much would you pay for a boutique hotel manager (%)?
If you had a property, say a multi-family apartment building that you were converting to an all-suite hotel, what % would you pay a property manager? I've got a deal where they were proposing 13% of revenue to manage the property. I know airbnb managers take like 25% (which is what theyve done a ton of in the past) and boutique hotel operators take like 5-7% and you can get a marketing firm for another $1500 a month, which is probably another 1% of revenue. So I'm not sure how to handicap this. It's a fairly automated business. You use bookerville, airgms, or liverez and it handles most of the dirty work. So potentially $130K a year to manage a 10 unit boutique hotel with no day-to-day staff, seems high to me. They also want a 10 year or until-sale contract to manage the property which seems nutty to me.