How Inflection Points in the Hotel Business Change Where You Lay Your Head
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In 1977, James Eyster, then a Ph.D. student at Cornell, published a book that would completely change the nature of the hotel business worldwide. His idea could not sound more boring—unless you saw the impact it would have. It involved the negotiation and administration of hotel management contracts. Eyster’s groundbreaking insight was that by using a management contract—essentially an agreement for a hotel management company to act as the agent of a property owner—one could readily separate out the real estate part of the hotel business from the management part. In a textbook example of an inflection point, this insight had the effect of changing all the key metrics formerly used in much of the hotel business. My friend and colleague Ted Teng, the CEO of the Leading Hotels of the World, chatted about this with me as part of some research I was doing for my new book,
How Inflection Points in the Hotel Business Change Where You Lay Your Head
How Inflection Points in the Hotel Business…
How Inflection Points in the Hotel Business Change Where You Lay Your Head
In 1977, James Eyster, then a Ph.D. student at Cornell, published a book that would completely change the nature of the hotel business worldwide. His idea could not sound more boring—unless you saw the impact it would have. It involved the negotiation and administration of hotel management contracts. Eyster’s groundbreaking insight was that by using a management contract—essentially an agreement for a hotel management company to act as the agent of a property owner—one could readily separate out the real estate part of the hotel business from the management part. In a textbook example of an inflection point, this insight had the effect of changing all the key metrics formerly used in much of the hotel business. My friend and colleague Ted Teng, the CEO of the Leading Hotels of the World, chatted about this with me as part of some research I was doing for my new book,