I don't really get an overview on your post, so I will list pros and cons by each method:

Centralized management:

Pros

• Easier Access and Maintenance: With Azure, you can manage all your hotels from a single account. This means employees who work across multiple properties will have seamless access to the resources they need, without juggling multiple logins.

• Simplified Security and Permissions: Azure Active Directory (Azure AD) makes it easy to manage who can access what across all locations. You can set up roles and permissions centrally, ensuring that employees only see what’s relevant to their job, no matter which hotel they’re at.

• Scalability: As you grow and add more hotels, it’s much easier to expand a centralized setup. There’s no need to duplicate resources or start over for each new property. But this is also a con, which I will mention later.

• Cost Efficiency: While there’s an initial setup cost, a centralized approach reduces administrative overhead and avoids the need for multiple separate systems, making it more cost-effective in the long run.

Cons

• Single Point of Failure: If something goes wrong with the centralized system (e.g., network issues, Azure downtime), it could potentially impact all hotels. While Azure has high availability, any disruption could affect the entire organization.

• Compliance and Regulatory Challenges: Depending on where your hotels are located, there may be regional data privacy laws or compliance regulations that need to be managed separately. Although Azure offers some compliance tools, managing data residency and compliance across multiple states could require additional configuration.

• Risk of Over-Complexity as the Business Grows: As you scale and add more properties, the centralized setup could become harder to manage if the initial structure wasn’t planned for growth. Balancing multiple hotels with different needs within the same system can be challenging.

Decentralized management:

Pros

• Autonomy for Each Hotel: Each hotel can have full control over its own Azure setup, allowing more flexibility to configure settings, policies, and resources tailored to the specific needs of that property.

• Simpler Setup for Smaller Hotels: If some of your hotels are smaller or have less complex IT needs, setting them up with individual Azure accounts can be quicker and easier. Each hotel can implement a straightforward solution without the complexities of managing a larger, centralized system.

• Local Control and Customization: Hotels can independently manage their own security settings, software, and resources, making it easier to address unique needs or challenges at individual locations without waiting for changes in a centralized system.

Cons

• Difficulty Managing Cross-Property Access: Employees who travel between hotels may face challenges with accessing systems and resources across multiple properties. Each hotel’s setup would require separate logins and permissions, making it harder to ensure smooth, seamless access.

• Higher Costs in the Long Run: While initial costs might be lower, a decentralized system could result in higher ongoing costs. Each hotel will need to individually purchase licenses, manage resources, and handle IT maintenance, which could add up over time.

• Difficulty Standardizing Processes: With each hotel operating independently, it can be difficult to standardize processes or best practices. This lack of consistency might lead to inefficiencies, errors, or uneven service quality across the properties.

• Complicated Disaster Recovery: Managing disaster recovery plans separately for each hotel can be challenging. In a centralized system, you could have a unified backup and recovery process, but with decentralized systems, each hotel will need to handle its own backup strategy, increasing the risk of gaps.

In conclusion, depends on the business model and growth strategy of the hospitality group. If each hotel operates as a separate investment by different investors, a decentralized setup makes sense. It allows each property to be managed independently, reducing the risk of financial conflicts between investors. This gives each hotel full control over its resources, security, and operations, without being dependent on a centralized system that may have differing priorities or policies. On the other hand, if the hotels are investments owned collectively by the group, a centralized approach would be more effective. Centralized management enables consistent data and security policies across all properties, improving efficiency, scalability, and ease of management as the group expands. It also allows for seamless access for employees who work across multiple hotels, making it ideal for businesses with shared ownership and operations.