April 28, 2010

Hotel management agreement terminations -- Is there a better way?

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hospitality Lawyers | Authors of www.HotelLawBlog.com
28 April 2010

Keywords:

Hotel Operating Agreement, HOA, Hotel Management Agreement, HMA, Hotel Management Contract, Management Contract. Hotel Operator, Hotel Manager, Hotel Owner. RFP for Hotel Manager. RFP for Hotel Operator, How to get a great hotel operator.

Terminology

Contracts between hotel owners and managers (or operators) controlling the management of a hotel go by various names. They are called hotel management agreements, HMAs, hotel management contracts or hotel operating agreements. For convenient reference, this article will generally use the term "Hotel Management Agreement" or "HMA." However all these terms can be used interchangeably and mean the same thing, just as with hotel operator or hotel manager.

Whatever they are called, Hotel Management Agreements allocate risk between the hotel manager and the hotel owner. They are critical in determining the profitability and value of a hotel.

Hotel Management Agreement disputes are on the rise! The recent announcement about Banyan Tree Hotels & Resorts terminating its management contract at Banyan Tree Al Areen resort in Bahrain are amongst the latest proof of this trend

Hotel management agreements are a key factor in the success and value of a hotel -- getting the right operator and a fair hotel management contract. And articles on hotel management contracts are some of the most frequently viewed items on www.HotelLawBlog.com. We have a rich library of resources on this topic - everything from "How to get a great hotel operator" and " Helping Owners Strike a Fair Deal: 5 Milestones Marking The Road To Success For Hotel Management Agreements" to "How to terminate a hotel management agreement when an operator really deserves it!" or "Terminating hotel management agreements when things don't work?."

A version of this article was first published on 28 April 2010 by Hotel Management Asia, a Questex Asia Ltd. publication, under the title, "Comment: Jim Butler on Hotel Management Agreements."

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April 27, 2010

Meet the Money® at JMBM's 20th annual hotel conference!

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
27 April 2010

Hotel Lawyer with the "last call" to join the Game Changers at Meet the Money®

Meet the Money® is next week, May 3-5, 2010 at the Sheraton Gateway LAX hotel. Although our room block has sold out completely, the hotel has graciously extended our preferred conference room rate until April 30. There is still time to register for this "can't miss" event.

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April 24, 2010

Global Hospitality Advisor®: Opportunistic investment alert! What to watch for when buying distressed debt on timeshare, fractional and vacation club developments

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
24 April 2010

Hotel Lawyer with some advice for investors in distressed notes and receivables involving timeshares, fractionals and vacation clubs. How to buy vacation ownership notes and receivables.

One of the most profitable endeavors for savvy lenders has been acquisition and development loans and consumer receivable financing for vacation ownership projects -- timeshare, fractional and vacation club projects. For various reasons that have little to do with the continuing sound fundamentals and continuing consumer demand for such project, the biggest lenders in this area have essentially stopped lending to deal with their other problems. And recently, some opportunistic investors have sought our advice on some potentially exciting loans being sold at a fair discount.

Due diligence is the caveat. (See What have we learned from "The Crash of 2008"? There are no shortcuts for due diligence! There is great opportunity here, but also significant risk that can be ferreted out and analyzed to provide great confidence about the investment. In this article, my colleague and timeshare lawyer David Sudeck, a senior member of JMBM's Global Hospitality Group®, shares some of his insights on this subject.

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April 22, 2010

Global Hospitality Advisor®: A masterstroke hospitality investment by savvy investor

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
22 April 2010

Hotel Lawyer with an update on successful Asian investor strategy

A number of years ago, JMBM's Global Hospitality Group® trademarked Global Hospitality Advisor® to reflect both the global and advisory nature of our focused hospitality practice. We are very proud to use it today with reference to Formosa International, a client we represented in signing a definitive agreement for the acquisition of worldwide rights to the Regent brand and hotel business.

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