This is what I am hearing from multiple Managed select service GM's. Is this true? If yes, what is the reason behind it?
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Sounds like no more Quarter Century Club as only Managed properties participate
Owners have been given the option to switch to franchised
It’s possible both parties are agreeing to this - thus no breach. May be providing cost savings for properties.
Highly unlikely. The process of terminating a management agreement (as MI would have to do) and finding enough franchisees with the financial wherewithal to take over those agreements is not something that could happen quickly. Plus, terminating those agreements would require Owner consent, and many Owners would be entitled to liquidated damages, because MI would be in breach of contract.
I think it IS likely that the MI-Managed units in less desirable places (i.e. NOT city-center, or secondary markets) could flip to the franchised side. But there are still hurdles. The hotels most at risk would be the ones at/near the end of their management agreement.