Management Company Criteria & Approval Process
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Management Company Criteria & Approval Process Basic Criteria: 1. A management company applying for approval must have: A. Demonstrated satisfactory history of not less than five years hotel management experience in multi-unit portfolio “Luxury/Full Service hotels”. A management company with less than five years’ experience must also meet the minimum criteria for “Corporate Positions” (as defined in #3 below); and B. At least one “Luxury/Full Service hotel” in its current portfolio with demonstrated satisfactory history of not less than one-year hotel management experience. Examples of “Luxury/Full Service hotels” include, but are not limited to, hotels operating under the following brands: • Conrad; Waldorf-Astoria; LXR; Canopy; Signia Hilton; Hilton; Doubletree By Hilton; Curio Collection; Tapestry Collection • Hyatt, Hyatt Regency • Marriott, Renaissance • Ritz Carlton • Pan Pacific • Sofitel • Jin Jiang • Shangri – La, Traders hotels • Kempinski • Fairmont • Swissotel • Mercure • Westin, Sheraton, St. Regis, W • Radisson (SAS, Blue) • Crowne Plaza, Intercontinental • Independent Hotels with no brand affiliation must be categorized as upper upscale or above. 2. Not less than 90% of the “Luxury/Full Service hotels” managed by the management company (including all Hilton family of brands) must have scored at or above their respective brand average score(s) for: overall service, overall cleanliness, and brand standards compliance for the previous 12 consecutive month period. 3. The management company’s organizational/ support structure must include not less than; four dedicated positions (VP , Director Level or higher), that have responsibility for the following six functions (each a “Corporate Position”): ▪ Operations ▪ Sales and Marketing ▪ Revenue Management ▪ Human Resources/Guest Services/Customer Relations Mgt. ▪ Finance ▪ Food & Beverage Each of the individuals filling these positions must have a minimum of five year's experience in their respective fields. No person filling a Corporate Position can be assigned the responsibility of running a hotel or hotel department. Hilton reserves the right to withdraw, alter or amend the above criteria 1 CURIO COLLECTION BY HILTON Management Company Approval Process & Criteria January 2020 at any time in its sole and absolute discretion. 2 CURIO COLLECTION BY HILTON Management Company Approval Process & Criteria January 2020 Required Information: Information must be submitted by the management company in order to begin the approval process. The information provided is used to objectively determine if the management company substantially meets the criteria and minimum requirements. The information below is a representation of the information required to complete the on-line submission: ❑ Management Company contact information ❑ Management Company Website address ❑ Guest Loyalty/Service Scores or equivalent indicating ‘hotels score’; ‘brand average score’ and ‘ranking within brand’ data (Most recent months report with 12 month rolling average and/or YTD information) ❑ Quality Assurance Reports or equivalent (Two (2) Years), indicating hotel and brand average scores in ‘cleanliness’ and ‘brand standards compliance’ ❑ Most Recent STR / Comp set report ❑ Mystery Shopper Reports (Two most recent) ❑ AAA Diamond Rating, Expedia, Trip Advisor and Mobil Ratings ❑ Management Company Organizational Chart and support positions ❑ Resumes and tenure of each Management Company employee listed in Org Chart ❑ Resumes of proposed General Manager, Resident/Hotel Manager and Director of Sales/Marketing ❑ Typical Hotel Staffing/Position Structure ❑ Description of Management Company's support role in key operating departments within the hotel i.e.: Sales and Marketing; Revenue Management; e-Sales; Guest Service and Training; Food and Beverage. Optional information that may be provided relevant to the management company: ❑ Industry Awards ❑ Digital pictures of hotel ❑ Current sales kit and collateral for each hotel ❑ Current guest service directory for each hotel A company may submit the above information, but the approval of the applicant is solely at the discretion of Curio by Hilton brand management. The brand’s decision to approve or deny will be delivered in writing once the supporting documentation as outlined in the Management Company and Approval Process and Criteria is received and reviewed. 3 CURIO COLLECTION BY HILTON Management Company Approval Process & Criteria January 2020 New Management Company Approval Criteria Criteria for Conditional Approval (1st 12-months of Management): 1. All management company approvals are “property” specific. 2. All hotel management and management company approvals are held to the same conditional performance standards as follows: A. During the first full 12-month of operation by the management company, the hotel must receive “acceptable” scores on all “quality assurance” evaluations conducted during this time-frame. An overall “unacceptable” score resulting from ownerships failure to cure deficient “condition” or required pip items will be taken into consideration in determining compliance with this requirement. B. During the first full 12-month of operation by the management company, “brand standards” compliance must be maintained at 95% or greater. C. After the first full 12-month of operation by the management company, the hotel’s “overall service” score must be equal to or greater than the “brand average" score as measured by the 12-month rolling Salt score average at the end of the 12th month. Hotels overall service score must be maintained above the brand minimum. D. After the first full 12-month of operation by the management company, the hotel’s “property loyalty” score must be equal to or greater than the “brand average" as measured by the 12-month rolling Salt score average at the end of the 12th month. E. Based on a 12-month trailing basis, the hotel does not experience a double-digit decline in RevPAR index. 3. General Manager of hotel must attend the virtual “Curio by Hilton General Managers Brand Training” within six months after assuming management of the hotel. 4. Director of Sales and/or Marketing of hotel must attend the virtual “Full Service Curio by Hilton Director of Sales Training" within six months after assuming management of the hotel. 5. Attendance by the General Manager and Director of Sales/Marketing at the annual “Curio by Hilton Brand Conference.” 4 CURIO COLLECTION BY HILTON Management Company Approval Process & Criteria January 2020 Approved Management Company Ongoing Criteria (After 1st 12 months of Management): 1. No hotels within the management company’s portfolio of Luxury/Lifestyle/ Full Service/Focus Family Hotels have failed two consecutive quality assurance evaluations in the past 12 months. 2. The Overall Experience Average for each hotel within the management company’s portfolio of Luxury/Lifestyle/ Full Service Family hotels must stay above the brand minimum. During any time where this criteria is not met, the management company will be ineligible to manage any additional Full Service Curio by Hilton Hotels and may be restricted from managing any additional Hilton Portfolio of Hotels. The individual scores for each Management Company’s Portfolio of “Luxury/Full Service hotels” are calculated on a semi-annual basis using a 6-month trailing average. Hilton reserves the right to withdraw, alter or amend the above criteria at any time in its sole and absolute discretion. Please note that the conditional approval provided herein is not to be considered an endorsement of the Management Company by Hilton or any of its affiliates and may be revoked at any time by Licensor for the Management Company’s failure to comply with the terms of the License Agreement or with all terms set forth in the applicable standards and manuals relating to the operation of the Hotel under the licensed brand name, or with any of the conditions set forth in this letter. 5 CURIO COLLECTION BY HILTON Management Company Approval Process & Criteria January 2020 .