While the majority of our properties are brand managed, we have negotiated flexibility to convert brand and /or management for a limited number of properties over the years. Brand managed is generally the preferred management option for larger, group-focused assets. We continue to evaluate third-party alternatives within our portfolio based on asset size, type and market. To date, we have 15 hotels managed by various third party operators in our consolidated and joint venture portfolio.
Due to the larger, more group focused size of our portfolio, the majority of our assets benefit from brand management.
For our smaller, more transient-focused hotels, we have negotiated or will continue to negotiate the ability to either franchise outright or gain the flexibility to franchise upon sale.
Axiom Hotel (formerly The Powell Hotel)
- Camby Hotel (formerly The Ritz Carlton, Phoenix)
- Chicago Marriott Suites O’Hare
- Denver Marriott Tech Center Hotel
- Hilton Singer Island Oceanfront Resort
- Hyatt Place Nashville Downtown (Joint Venture Hotel)
- Hyatt Place Waikiki Beach
- San Francisco Marriott Fisherman’s Wharf
- Sheraton Berlin Grand Hotel Esplande (Joint Venture Hotel)
- Sheraton Memphis Downtown
- Sheraton Parsippany Hotel
- The Logan (formerly Four Seasons Hotel Philadelphia)
- The Westin Cincinnati
- The Westin Indianapolis
- YVE Hotel Miami
- 41 of 89 domestic hotels have management agreement contract flexibility
- 29 hotels have negotiated termination rights(1)
- 8 hotels have management agreements with no operation extensions remaining(2)
- 4 hotels have current or anticipated performance termination rights(3)
(1) Represents operating agreements which expire between 2019 and 2065 and that can be cancelled either by the payment of a fee, conversion to a franchise, or that are terminable upon sale. These termination rights are subject to limitations on the number that may be terminated over time and other limitations, including a limitation on the number of agreements that may be terminated as measured by EBITDA.
(2) Represents operating agreements which expire between 2020 and 2031 with no further extensions.
(3) Based on historical and forecast operating results, management believes that these four properties have not met or will not meet specific performance tests and as a result, are, or will be, terminable over the next 3 years. However, the operators of two of the properties have certain rights to cure the default.