23 June 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 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.