Hotel Management Agreements

Posted On: June 25, 2010 by the JMBM Global Hospitality Group®

Hotel Management Agreement performance standards -- The Owner's Return test

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

Hotel Lawyer with hotel management agreement performance standard to take care of Owner's concerns. With experience gained in negotiating, re-negotiating, litigating, arbitrating and advising on more than 1,000 hotel management agreements and more than $60 billion of hotel transactions, the members of JMBM's Global Hospitality Group® wanted to share some lessons learned on the subject. They are all available at www.HotelLawBlog.com.

To see the rich library of materials on Hotel Management Agreements, you can click here: Hotel Management Agreements ( http://hotellaw.jmbm.com/management_and_franchise_agree/). Or you can just do a GOOGLE search on "hotel management agreements" and you will see it near the top of the search.

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Posted On: June 23, 2010 by the JMBM Global Hospitality Group®

Hotel Management Agreement performance standards -- The Operator's take

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

Hotel Lawyer with more on HMA performance standards -- the typical Operator clause. This article is one of a series of articles focusing on Hotel Management Agreements or HMAs as they are often called. If you have missed some of the extensive ground covered here before, stop by www.HotelLawBlog.com, particularly at Hotel Management Agreements.

In the last article, we talked about Hotel Management Agreement performance standards and why they matter. Today, we will analyze a typical Operator form of performance standard, and later we will look at a model better suited to an Owner's interests.

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Posted On: June 22, 2010 by the JMBM Global Hospitality Group®

Hotel management agreement performance standards and why they matter

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

Hotel Lawyer with some practical tips on hotel management contract performance standards. Interest has recently spiked in getting new hotel management agreements (HMAs) or re-negotiating existing ones. It seems that some investors buying distressed properties are looking to rebrand and get new hotel operators. Some lenders are too as they take over troubled assets.

That makes this seem like a good time to remind everyone about the wealth of information on this subject at www.HotelLawBlog.com, particularly at Hotel Management Agreements.

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Posted On: April 28, 2010 by the JMBM Global Hospitality Group®

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

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

Keywords: How to terminate hotel management contracts, how to terminate hotel management agreements, hotel management agreement termination, hotel management contact termination, how to get a great hotel operator.

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?."

To see all the articles on the Blog home page, go to www.HotelLawBlog.com, click on the tab for "Hotel Law Topics" and then select "Hotel Management Agreements."

Please note: 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", but all these terms mean exactly the same thing. There is no difference. Similarly, for variety we will use the terms "hotel manager" or "hotel operator" interchangeably.

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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Posted On: May 27, 2009 by the JMBM Global Hospitality Group®

Terminating hotel management agreements when things don't work? Not easy, but not impossible either.

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

27 May 2009

Hospitality Lawyer: Fixing hotel management agreements that don't work.

What is one of the nicest acknowledgements of professional accomplishment a hotel lawyer might receive? In my book, being recognized by the New York Times as an expert in a core aspect of my legal and advisory practice is pretty close, and that is what happened yesterday in a Times article by Jonathan D. Glater about the increased friction between hotel owners and operators now erupting into litigation in the case of the Four Seasons Aviara and the Fairmont Turnberry.

As I said in another New York Times quote last month by Martha C. White, we are facing the prospect of hotel bankruptcies and foreclosures reaching levels not seen since the last big downturn of the 1990s.

And indeed, it is in difficult times like these when hotels fail to meet debt service -- or even operating expenses -- that owners and lenders become very frustrated with operators that prefer their own interests to those of the hotel. And that is why Jonathan Glater's article was looking at two high profile emerging battles where owners are standing up to operators and saying, "I'm mad as hell, and I'm not going to take it anymore."

Here's how we see it.

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Posted On: April 2, 2009 by the JMBM Global Hospitality Group®

Ask the Hotel Lawyer: Hotel bankruptcy trump card. Terminating hotel management agreements without liability -- the alchemy of lead to gold for troubled hotels and hotel loans?

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
2 April 2009

Please see "troubled hotel loans - workouts, bankruptcies & receiverships" for the latest articles on troubled hotels.

How do you terminate a long-term hotel management agreement or HMA? The hotel bankruptcy trump card. This is an increasingly popular question regularly put to the hotel lawyers of JMBM's Global Hospitality Group®.

Continue reading " Ask the Hotel Lawyer: Hotel bankruptcy trump card. Terminating hotel management agreements without liability -- the alchemy of lead to gold for troubled hotels and hotel loans? " »

Posted In: Global Financial Crisis & Recovery , Hotel Management Agreements , Workouts, Bankruptcies & Receiverships

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Posted On: January 5, 2009 by the JMBM Global Hospitality Group®

The Best from the Blog -- Hotel Lawyers

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
5 January 2009

To say the least, the last year has been a very "interesting" one. Here are our picks for "The Best from HotelLawBlog.com" from 2008. There are some classic pieces here!

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Posted In: ADA Defense , Global Financial Crisis & Recovery , Green Hotels , Hotel Finance − Hotel Debt & Hotel Equity , Hotel Management Agreements , Hotel Mixed-Use , Labor & Employment , Meet the Money® , Timeshare , Workouts, Bankruptcies & Receiverships

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Posted On: October 26, 2008 by the JMBM Global Hospitality Group®

Hospitality Lawyer: Hotel Management Agreements: SNDAs or Subordination Agreements

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com and
Robert E. Braun | Partner JMBM's Global Hospitality Group®

26 October 2008

Hospitality Lawyer on how SNDAs or Subordination Agreements affect the value, financeability, and collateral value of a hotel.

As we mentioned recently, Bob Braun and I decided to create a series of articles about Hotel Management Agreements or HMAs as hospitality industry veterans often call them. (See "Hotel Management Agreements 201 by Hospitality Lawyer - Indemnification Provisions"). The successful matching of the brand and operator with your hotel can be one of the most important factors controlling your hotel's value, liquidity, financeability and operational success. Many owners do not realize how important the HMA is until it is too late. That's why the Hospitality Attorneys at JMBM's Global Hospitality Group® -- who focus on representing hotel owners, developers and lenders -- decided to share some important lessons we have learned over the years in working on many hundreds of Hotel Management Agreements -- probably more than 1,000.

If you are about to explore looking for a hotel operator for your hotel project, have a new hotel management agreement in your future, or have issues with an existing HMA, you will find important information under the "Hotel Management Agreements" TOPIC -- one of the tabs at the top -- at www.HotelLawBlog.com. You might also check out the resources listed at the end of this article.

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Posted On: September 5, 2008 by the JMBM Global Hospitality Group®

Hotel Lawyer: The 5 questions every owner should ask before selecting a hotel brand

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
5 September 2008

Hotel brand proliferation offers more choices -- and challenges -- for hotel owners. What are the 5 questions every owner should ask before selecting a hotel brand?

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Posted On: July 29, 2008 by the JMBM Global Hospitality Group®

Hotel Management Agreements 201 by Hospitality Lawyer - Indemnification Provisions

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com and
Robert E. Braun | Partner JMBM's Global Hospitality Group®
29 July 2008

Hospitality Lawyer: How to survive some of the custom and "lore" of Hotel Management Agreement Indemnification Provisions.

While we have a very deep bench of hospitality lawyers -- particularly in hotel management agreements -- my partner, Bob Braun, is one of the most experienced on our team, with several hundred management contracts to his credit, and a dozen or more on his current work schedule at any point in time.

So it was no surprise when he suggested recently that we work together on a few articles going "beyond the basics" of hotel management agreements and post them for our industry friends on www.HotelLawBlog.com. We decided to call this upcoming series, "Hotel Management Agreements 201." Bob took the lead in putting this first one together on the critical area of INDEMNIFICATION, and here it is.

Continue reading " Hotel Management Agreements 201 by Hospitality Lawyer - Indemnification Provisions " »

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Jim Butler

Jim Butler is recognized as one of the top hotel lawyers in the world. He devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders. Jim leads the Global Hospitality Group®—a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,000 properties located around the globe.
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Robert Braun

Robert Braun is a partner in JMBM's Corporate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. Bob represents owners in both transactional and operational issues. He advises clients with respect to business formation, financing, mergers and acquisitions, venture capital financing, joint ventures and strategic partnerships. He has represented hotel owners in the negotiation of several hundred management agreements, as well as spa management and franchise agreements. Bob also advises hotel owners regarding telecommunications, software, internet, e-commerce, data processing and outsourcing agreements. To read Bob's articles, go to www.HotelLawBlog.com and select "Management Agreements." For more information, please contact Bob Braun at 310.785.5331 or rbraun@jmbm.com.

Marta Fernandez

Marta Fernandez is a partner in JMBM's Employment and Labor Department and a senior member of JMBM’s Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. As a management labor lawyer with more than 20 years of experience, Marta specializes in representing hospitality industry clients in all aspects of labor and employment including labor-management relations such as union prevention, collective bargaining for single as well as multi-employer bargaining units, neutrality agreements and defense of unfair labor practice charges before the NLRB. She defends employers in administrative and litigation claims, such as employee claims of sexual harassment and discrimination and counsels clients in preventative strategies such as executive training, arbitration enforcement, and policies and procedures. To read Marta's articles, go to www.HotelLawBlog.com and select "Labor & Employment." For more information, please contact Marta Fernandez at 310.201.3534 or at mfernandez@jmbm.com.

Catherine DeBono Holmes

Catherine DeBono Holmes is a partner in JMBM's Corporate Department and a senior member of JMBM’s Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. Cathy assists hotel clients with hotel management and franchise agreements, purchase and sale transactions, and condo hotel regime structuring. She has taken hotel owners through complex RFP processes involving all the major hotel brands. She has significant expertise in condo hotels and advises clients in the specific business and legal aspects of condo hotel regime structuring and documentation, including CC&Rs, HOA docs, unit management agreements, shared facilities agreements, rental management agreement programs and securities compliance matters (structuring, documentation and training). To access Cathy's articles on www.HotelLawBlog.com, click on the topics "Condo Hotels" or "Green Hotels" For more information, please contact Cathy Holmes at 310.201.3553 or cholmes@jmbm.com.

Guy Maisnik

Guy Maisnik is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. Guy's deep and broad transactional practice includes complex real estate finance and venture capital transactions, including project finance, commercial finance, leveraged leasing and real estate acquisitions. He assists clients with development, leasing and disposition, loan portfolio acquisitions, loan and debt restructure, workouts and real estate exchanges. Go to www.HotelLawBlog.com for current information in these areas. For more information, please contact Guy Maisnik at 310.201.3588 or mgm@jmbm.com.

David Sudeck

David Sudeck is of Counsel in JMBM's Real Estate Department and a senior member of JMBM’s Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. David has significant experience in the vacation ownership arena, focusing on the formation and registration of condominiums, timeshares and fractional interest regimes. He negotiates hotel, spa and restaurant management agreements, and assists client in the development, acquisition, sale and leasing of hotels, golf courses and restaurants. For David's take on current issues in the timeshare arena, go to www.HotelLawBlog.com and click on the topic, "Timeshare." For more information, please contact David Sudeck at 310.201.3518 or dsudeck @jmbm.com.

Robert Kaplan

Robert Kaplan is a partner in JMBM's Bankruptcy, Insolvency and Restructurings Group and a senior member of the Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. Bob represents lenders, special servicers, hard money lenders, community banks, national banking associations, distressed debt investors, and equity investors, positioning them for the best possible outcome by acting expeditiously to preserve value and increase cash flow. His industry experience and his knowledge of the current capital markets -- where distressed assets often include complex deal structures and securitized loans -- allows him to bring creative and effective strategies to the table. When aggressive litigation is the best strategy, he is a vigorous and effective advocate for his clients. Bob represented the securitized lender in the Chapter 11 bankruptcy case filed by the Clift Hotel in San Francisco, and in the subsequent negotiations and successful sale of the loan to a third party. The lender -- acting by and through GMAC Commercial Mortgage Corporation as special servicer -- was the holder of a $60 million loan secured by a Deed of Trust on the Clift Hotel. He has also served as counsel to CapMark, J.E. Robert Company, Inc., AMRESCO Management Inc. and Midland Loan Servicer in their capacity as special servicers on troubled hotel loans in CMBS pools. For more information, contact Robert Kaplan at 415.984.9673 or rkaplan@jmbm.com.

Martin Orlick

Martin Orlick is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. Marty specializes in representing hospitality industry clients in Americans With Disabilities Act (ADA) compliance and defense. He has represented more than 300 businesses in ADA issues, many of them hotels and restaurants, as well as hotel mixed-use properties. Marty is a member of the American College of Real Estate Lawyers (ACREL) and a frequent speaker on the ADA and other topics. To read Marty's articles, go to www.HotelLawBlog.com and select "ADA." For more information, please contact Marty Orlick at 415.984.9667 or morlick@jmbm.com.

James Abrams

James Abrams is Of Counsel at JMBM and is a senior member of JMBM’s Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. Jim has served the hospitality industry for 40 years and specializes in lodging and hospitality law and in representing and advising trade associations and other non-profit entities. Jim has significant experience in government affairs at the national level, the state level – including the California Legislature and scores of state agencies – and with local governments and agencies. He has authored successful ballot measures and scores of bills for his clients. Jim served as the President and CEO of the California Hotel & Lodging Association from January 1, 1991 through December 31, 2008 and is currently an adjunct professor in the Hospitality Industry Management Program at the University of San Francisco. He is a frequent speaker and writer on all aspects of the law relating to the lodging and hospitality industries, and he is the author of the book Laws Pertaining to the California Innkeeper, which is published by the California Hotel & Lodging Association. To read Jim’s articles, go to www.HotelLawBlog.com. For more information, please contact Jim Abrams at (415) 398-8080 or jabrams@jmbm.com.

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Ask The Hotel Lawyer ™

Ask the Hotel Lawyer™ is a quarterly column that I write for JMBM's Global Hospitality Advisor®. If you have a question you would like to submit to Ask the Hotel Lawyer™ please use the comments box below. While your question may not be of sufficient general interest for the column, I will try to respond to you individually if you leave your contact information below. Jim Butler.

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Featured Articles

Hotel Management Agreements

Hotel Management Agreement performance standards -- The Owner's Return test

Hotel Management Agreement performance standards -- The Operator's take

Hotel management agreement performance standards and why they matter

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

Terminating hotel management agreements when things don't work? Not easy, but not impossible either.