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April 08, 2025
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Modified April 15, 2025
Sean Hennessey
Clinical Associate Professor, NYU SPS Jonathan M. Tisch Center of Hospitality
The marginal cost of bolting one more management contract or one more franchise onto an existing system is minimal; hotel companies can offer key money and still enjoy a profitable arrangement.”
The Tisch Center’s Sean Hennessy shared his perspectives in a recent Hotels (opens in a new tab)magazine look at the critical role that key money—a payment from hotel brands to owners to secure management or franchise agreements—plays in a hospitality landscape impacted by high interest rates and skyrocketing building costs.
