Hotel production –Contract plan

We offer two types of contracts to meet the needs of clients and owners: a consulting contract for comprehensive management support, a management contract where clients and owners entrust us to manage properties, For details, please check the following link.

We take charge of our client’s property and operate it on a contracted management basis. We submit a sales and earnings report each month and offer maintenance, as well as manage and report the necessary expenses.

Contents of contract

Sales and payments shall be contractually managed by the client. Accordingly, all other risks will be assumed by the client. The authority to make decisions about personnel, employment, and all other relevant matters shall be retained by the client. The outsourcing fee shall be 15 to 25 percent of monthly operating profits (equal to monthly sales less personnel costs and other general operating costs). In addition, the contract shall be effective for a period of five years or longer and thereafter renewed annually.

Costs to be assumed by the owner

Initial costs

  • □ Costs incurred to purchase land and buildings □ Costs incurred in connection with renovations
    □ Costs relating to design and production □ Consumption tax and other taxes and public dues

Running costs

  • □ Personnel costs and business expenses in general □ Fixed asset taxes levied on land and buildings
    □ Insurance on losses □ Operational outsourcing fee and consulting costs
    □ Fire insurance covering buildings