26 October 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.
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.