Hotel Management Contracts
Financial owners of hotels see the management contract as the most important strategic lever in defining the rights and responsibilities of hotel owners and hotel operators. Never has there been a more diverse set of management contracts in use. Management contracts were originally born of a desire to allow financial or passive owners to participate in the ownership of hotel real estate while contracting with managers to operate the hotel on the owners’ behalf. This desire has evolved into a very sophisticated market in which owners of hotels contract with operators over the use, branding, and long-term control of hotel assets. In this session, we explore contemporary management contract structures and provide insight into how they are negotiated and administered.
Learn about global practices and recent trends in management contracts, including how management fee structures vary across the hotel industry.
Understand the major clauses and how they impact the hotel operation.
- Contemporary practice and trends in management contracts
- Major hotel management contract clauses; term, fee, termination rights, operator financial contribution
- Management contract negotiation and administration