Type of Ownership

Joint venture: It is a type of ownership sharing organization. They are formal arrangements made by two or more independent organizations to set up a jointly owned new organization. The ownership can be in terms of shareholding or agreements for profit sharing. Most of the small-scale hotels in Nepal are joint ventured.

Consortia: This is another type of ownership organization, which involves two or more organization in joint venture arrangement focused on a particular project. Phulbari Hotel in Pokhare is the result of consortia between various banks. Consortia involve the pooling of resources and compentencies.

Franchises: It is a contract based organization, which grants the right to use a brand name for specific activities such as production and marketing in return for a royalty. The franchiser provides quality assurance and training to the franchisee. Hyatt regency, Radisson and Soltee Crowne plaza are the example of franchisee.

Public limited: This type of organization is run by the support of Suppliers, banks, factoring, leasing and hire purchase companies, government grants and loans, venture capital institutions, and public share issues via stock exchange.

Management contract: This type of organization operated in different countries making a contract with the parent company using brand name and a total management system, exactly like the parent company. In most of the cases, the business is managed by the management team from the parent company itself.