Baker & McKenzie's Views on What is the Risk/reward Relationship Between an Owner and a Manager? - By Graeme Dickson and Kerrie Duong
The starting point for this discussion is the hotel owner. The operation of a hotel is usually the hotel owner's business. The hotel owner is entitled to all the profits of the business and is liable to pay all the losses. Profit is what is left after all the hotel's expenses have been deducted from hotel revenue (and losses arise if the expenses exceed the revenues).