This paper aims to analyze a managerial and organizational formula, which
has become widespread in the hospitality business during the past decades: the
management contract (the expression "management agreement" is commonly used
too). Hotel groups have proved management agreements (along with franchising) as
an effective managerial tool for their growth strategies. As a consequence, currently
a significant proportion of hotels is run through formulas different from traditional
owning property. Hotel brands, owners and management companies have shaped
permutations and combinations of operating models that, suitably employed can
increase profitability (HVS, 2015). This paper provides an overview of the academic
literature on the topic, starting from the first noteworthy contributions of Eyster in the
80s and 90s (Eyster, 1980, 1993), discussing the use of management contracts in
the lodging sector. The review of academic contributions regarding general economy
directions, theoretical frameworks and sectorial applications is integrated with the
analysis of the annual reports of some leading hospitality groups and by the
examination of sectorial business surveys drafted in the past decades (HVS, 2007,
2013, 2014, 2015; Jones Lang Lasalle Hotels, 2001).