The hotel management agreement is the key legal document that governs relationships between hotel owners and managers. The relative negotiation power varies based on the parties, the location and desirability of the asset, and the economic climate, and lenders and brands are reviewing hotel management agreements with increasing scrutiny. It is critical that the terms are competitive and sustainable.
This webinar provided practical advice for negotiating term sheets and hotel management agreements to provide maximum return on investment while balancing the interests of owners and managers. Takeaways included:
- Hotly negotiated topics and current trends: termination, financing, and fees
- Market terms for branded and non-branded agreements
- New legal considerations: data security and guest privacy
- Third-party restaurant operators: selection, approvals, fee structures, and relation to hotel manager