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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