In hospitality finance, the difference between strong performance and missed opportunities often lies in the details. One area that consistently challenges hotel finance teams is managing fees and leases. These costs are more than recurring entries on a Profit & Loss (P&L) statement. Fee & Lease Management represents complex agreements with owners, operators, tenants, and service providers that directly influence a hotel’s profitability.
Traditionally, calculating these accounts has been manual, time-consuming, and prone to errors. Spreadsheets and siloed processes make it difficult to align with contractual terms or reflect agreements accurately in departmental P&L reporting. This complexity not only consumes valuable time but can also delay strategic decision-making in hotel financial planning.
Fairmas recognizes this as a critical area where hotels can gain efficiency and control. Our Fee & Lease Management feature in FairPlanner simplifies these processes, giving finance teams the flexibility and accuracy they need to plan confidently and improve hotel profitability.
Why Fee & Lease Management is Important for Hotels
Every hotel operates with a unique set of financial agreements. Management fees, lease payments, and tenant contracts vary across properties. Some are tied to percentages, others to fixed rates, and many use hybrid models with caps, minimums, or seasonal adjustments.
With Fairmas’ Fee & Lease Management, finance teams can transform this complexity into clarity:
- Full transparency: View how fees and leases are calculated and see their direct impact in the P&L by department
- Accurate reporting: Apply percentages, caps, minimums, or direct calculations with confidence to reduce errors
- Efficient planning: Save time with automation and standardized processes, allowing finance teams to focus on strategy, analysis, and decision-making
Smarter fee and lease control turns what was once a manual, error-prone task into a seamless and reliable process.
Example: Flexible Management Fee Setup
Let’s take a real world example into account.
A management fee can include multiple conditions that often make manual calculation difficult. For example, a hotel may have a management fee based on 10 percent of Total Hotel Revenue, excluding SPA and office rental revenue. An additional amount of 1,000 per month euros is added for the first half of the year. The fee may have a minimum cap of 50,000 euros and a maximum cap of 200,000 euros. Certain months, like November, may have no fee applied due to seasonal closure.
The Fee & Lease Management feature within FairPlanner can handle these conditions reflecting every possible contract combination, including percentages, caps, minimums, special percentages, deductions, or marketing-related fees such as online marketing or reservation fees.
Customization at Property Level
Finance teams can define fee and lease at the property level with ease. They select the fee account, set percentages, add optional caps or minimum amounts, and preview how the fees are calculated. This ensures transparency and allows hotels to view fee and lease accounts directly in the P&L, eliminating the need for separate side calculations in another spreadsheet, which could have led to many manual errors.
Precision at Corporate Level
The Fee & Lease Management feature within FairPlanner also allows setup at the corporate level. Finance professionals can select a base account, refine it with an adjusted base account, or enable direct calculation for precise planning. They then choose the account where the fee or lease is recorded, ensuring all contractual agreements are accurately reflected directly in the financial plan.
The Bigger Picture: Driving Accuracy and Profitability in Hospitality Finance
Embedding this level of control into hotel financial planning saves time, reduces errors, and ensures transparency across all properties. The benefits are clear: better forecasting, stronger profitability analysis, and reliable insights for stakeholders. In an industry where accuracy and agility are vital, smarter Fee & Lease Management is more than operational efficiency. It enables finance teams to plan effectively and manage profitability with confidence. With Fairmas’ software solution, hotels gain a reliable and flexible way to keep financial planning aligned with the realities of their business.
