Lodging Fund REIT III Announces New Hotel Management Partnership

Lodging Fund REIT III, Inc. has handed over management of eight hotel properties to Hotel Equities Group, LLC, a hospitality management firm based in Atlanta. The move, effective February 10, 2025, replaces National Hospitality Services, LLC (NHS) as the operator and marks a streamlined approach to property oversight.

This change comes with no early termination penalties for the company, clearing the way for a seamless transition. Hotel Equities now serves as the exclusive manager for these properties under a five-year agreement with automatic three-year renewals. The goal is clear: to improve operational efficiency and maximize performance.

Under the agreement, Hotel Equities will receive a 3% management fee based on each property’s gross revenue. On top of that, the company will collect additional fees for accounting, revenue management, and technology services, all of which are subject to annual cost adjustments. Performance matters here —Hotel Equities can also earn incentive bonuses for hitting key performance targets and exceeding annual profit benchmarks.

If a property changes hands and Hotel Equities isn’t retained, the company will receive an off-boarding fee tied to its past management fees. Termination fees are also in place for specific situations, providing clear parameters for both sides.

This partnership is built on a structure that rewards growth and performance, with a plan to sharpen the operational focus of Lodging Fund REIT III’s hotel portfolio. By tapping into Hotel Equities’ expertise, the company is setting the foundation for stronger results and smarter management practices moving forward.