% to give hotel management company that also handles sales/mkt?

[Anders Jax]

So I've got a group of LP's and we are talking to a GP who also owns a management business.

Their prior bread and butter is in residential short-term rentals, like airbnb type bookings.  They have a great platform no doubt, and drive great results.

However, they are moving into Hotel deals as they offer a scaling-up and efficiency of time and effort, but the management % they are proposing for a real estate deal is 20%... 

Their answer to me when I stated that a normal hotel management fee is 3% is "Those 3% rates don't include the opex of running the hotel like sales, marketing, etc. Our fee is all inclusive." An additional 17% for those functions? Is that reasonable? What would one actually generally pay to a company to handle marketing and sales for a property? Would it be a % of revenue, or some type of negotiated-fee?

In my research I found that hotels spend an average of 8% on marketing/sales.  That's 11% combined.  And I am not sure yet whether this management co is saying that all the marketing spend comes out of their end (included in their 20%) or whether they would charge the business for any advertising buys, etc., further adding to the marketing and sales %.  

How would you generally handle, as a GP, finding and negotiating with a firm to do the marketing and sales?  Because this 20% all-inclusive seems like a huge percentage that isn't properly broken down the way it should be.

Thanks,

Anders