Life House, a management company that specializes in independent hotels, has launched a new referral program to support brokers, developers, architects, designers and hotel owners during what the company described as a time of low transaction and development activity.
The company cautioned the referral fees may not be as “lucrative” as a traditional broker transaction fee, but could be as high as $50,000, depending on the size of the hotel referred. If an introduction results in Life House signing a Hotel Management Agreement, Life House will provide a one-time reward in the amount of 0.5 percent of LTM Revenue for existing operating hotels or 0.5 percent of Projected Year 1 Revenue for new-builds or hotels that will undergo renovation.
“We’re deeply committed to our mission of helping not only independent hotel owners, but the industry as a whole,” Rami Zeidan, founder & CEO of Life House, said in a statement. “We understand that the hotel industry is small and while most of our friends, broker partners, etc. make referrals out of the goodness of their hospitality spirit, we wanted to be proactive to reward those who may be going through a dry patch in this economic environment.”
According to the company, its tech-driven management approach can increase net operating income as much as 250 percent. The model leverages proprietary tech and “complex operating systems and processes” to support its portfolio of more than 100 properties, which range from select service to lifestyle motels to those affiliated with Leading Hotels of the World.
More information about the referral program can be found at Life House’s Referral Program Page.