Author of www.HotelLawBlog.com
21 April 2008
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 Lawyer on hotel management agreements. Long-term, no-cut hotel management agreements: How to get the right brand and operator for your hotel project . . . and a deal you can live with.
The successful matching of a hotel brand and operator with an asset and its owner is an important determinant of the financial and operational success of a hotel project. Aside from the right “marriage” partners, the terms of the management contract tying them together is critical, because it will likely govern the relationship for decades and is hard to change once cast.
Question: What’s more important for your hotel project than getting the “right” brand and operator?
Answer: Not much! Finding the right operator or brand for your project — and achieving reasonable terms — can make a significant and positive impact in key areas: value, financing, and operational success.
So how do you do that?
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