The role of hotel owners across different management and agency structures

This study examines the degree to which hotel owners influence the operation of their hotels in both single- and multiple-agency scenarios. Key findings from a survey of 499 general managers are that: (1) owners influence financial property-level decisions to a greater extent than operational property-level decisions; (2) owners of independently operated hotels are more involved in such decisions than are owners of hotels operated by a management company; and (3) asset managers assist owners in achieving greater involvement. The findings provide empirical evidence about how principals can mitigate the agency problem in multiple-principal scenarios through client and behavior-based methods.