The rise of third-party hotel operators in Europe

This business model, which emerged in the USA, has gained significant traction in Europe in recent years

Jan 23, 2023

Owing to their close relationship with franchisors, and the relative flexibility of the franchise model, independent management companies have become key to developing relationships between brands and hotel owners on a large scale.

Key takeaways

  • Third-party operators (TPOs) are unaffiliated with the owner or the franchise brand and are often referred to as White Label operators in the UK;
  • In the case of a TPO, owners may obtain branding using a licensing agreement between the owner and a hotel brand;
  • The use of TPOs has traditionally been most common among small and mid-sized hotels, especially for hotels that are limited service or extended stay.

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