What it costs,
and how we earn.
Three components, stated in full before you receive a proposal. What we will not do is quote a fee before we know the city and the model, because the number would be meaningless.
Property purchase and furnishing are excluded from the base our setup fee is calculated on.
Our fee is not the cost of your business.
Two entirely separate numbers, and confusing them is the fastest way to misjudge this proposition.
Establishment cost
Everything required to bring the business into existence and to the point of taking bookings. Formation and filing fees, professional fees, registration and permit costs, safety certification, insurance premiums, listing and photography, technology subscriptions and setup of the local service partners.
Paid by you, to the providers concerned. We coordinate it, we do not mark it up, and you see the invoices.
Capital deployed into the property
Purchase price, lease deposit, furnishing and fit-out, and the cash buffer the business needs to trade through quiet months before it is established.
In Models B and C this is the largest number by a wide margin, and it is excluded from the base on which our setup fee is calculated. We are not paid a percentage of the sofa.
A fee charged on the property and the furnishing would pay us more for recommending a purchase over co-hosting, and a lavish fit-out over a durable one. That is precisely the incentive we have designed out.
How Akontec is paid.
Percentages and amounts are agreed per venture and confirmed in your order form. The structure below does not change.
Setup fee
A percentage of the establishment cost defined above, with a stated minimum so that small ventures remain viable to deliver. The rate is agreed once model and city are fixed.
- Property and furnishing excluded from the base
- Stated minimum fee applies
- Rate reduces as establishment cost rises
- Staged against delivery milestones
Management fee
A fixed monthly amount covering the guest desk and back office. Sized to actual scope — number of properties, channels listed, hours of coverage — and reviewed annually.
- Covers our delivery cost, not our profit
- Scope defined in a service schedule
- Service credits if we miss agreed measures
- Notice period both ways
Profit share
A percentage of net operating profit above a threshold agreed at the outset, calculated annually against a defined expense schedule and chart of accounts.
- Nothing due below the threshold
- Expense schedule fixed in advance
- Calculated on agreed accounts, shown not asserted
- Fixed term, not perpetual
Specific percentages, minimums and thresholds are set per venture and are not published here, because a single published number would be wrong for most readers. They appear in full in your proposal before you commit to anything, and they do not change afterwards without your written agreement.
The part that needs nailing down.
Loose profit-share arrangements are where these relationships break. Ours is defined tightly, in your favour as much as ours.
Net operating profit
Booking revenue less operating expenses on an agreed schedule — cleaning, linen, utilities, platform fees, maintenance, insurance, rent where applicable. Not gross revenue. We do not get paid when the property loses money.
Nothing below the hurdle
A profit level is agreed before launch. Below it no share is payable at all, so you recover a base return before we participate.
We do not own your property
The share is a contractual right under a management agreement. We take no interest in your company or your property, we do not appear on any title or register, and we have no claim on a sale.
Fixed, with exits
A defined term with performance exit rights on both sides. If we underperform against the service schedule you can end it. A perpetual claim on a business you paid to build is not something we would ask for.
You see everything
Monthly management accounts, annual reconciliation and full access to the underlying booking and cost records. The calculation is shown, not asserted.
Limits in writing
A delegated authority schedule sets out what we can decide and spend without asking, and what is always reserved to you. Nothing material happens outside it.
How and when the setup fee is paid.
Staged against delivery, with a retention released only after the property is actually taking bookings.
| Stage | Share | Released against |
|---|---|---|
| On signing | 40% | Order form executed, engagement opened, city and feasibility work begins |
| On securing | 30% | Entity formed, property secured with all four gates cleared, consent documented |
| On readiness | 20% | Registration and safety complete, insurance bound, furnished, listed and live |
| Retention | 10% | Released 30 days after the first guest, against the acceptance criteria in your order form |
Paid by you, at cost
Government and registration fees, professional fees, safety certification, insurance premiums, photography, furnishing and technology subscriptions are paid by you directly or reimbursed at cost against invoices. We do not mark them up and we take no commission from providers we introduce.
If a supplier offers us a referral fee we tell you and credit it against your fee. That is written into the agreement.
Exit is defined before you start
End the engagement during setup and you pay for stages completed, nothing further. End the management agreement after launch and you keep the company, the lease or title, the furnishings, the listings, the platform accounts, every document and the operating manual.
Listings and reviews are transferred to your control, not retained by us. There is no lock-in mechanism and no clause that makes leaving expensive. A transition plan is part of the agreement, not something negotiated once the relationship has soured.
Get the numbers for your venture
Bring your capital range and target city. We come back with the fee, the establishment budget and the capital requirement, itemised.