Traditionally, management companies have been paid a monthly fee (usually a percentage of gross rooms revenue) to manage a hotel. More recently, management fees are tied to actual hotel performance as measured by RevPAR indexes generated by the STAR Report (see Chapter 8 ). Critics of this newer approach contend that, while the STAR Report measures the sales ability of the management team, it does not measure the team’s ability to control costs and maximize profitability. If you formed a management company, would you propose to manage hotels for a percentage of the gross rooms revenue, for a fee determined by your STAR Report results, or for a fee determined by the hotel’s profitability? Which approach do you believe would appeal most to hotel owners? As a professional GM, under which system would you most like to manage?