21 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 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.