The Hotel Management Contract serves as the foundational document governing the relationship between property owners and professional hotel operators in the United States. This contract type is essential when hotel owners seek to delegate operational responsibility to experienced management companies while retaining ownership of the asset. It addresses crucial aspects such as performance standards, fee structures, operational control, budgeting authority, and termination rights, while ensuring compliance with federal and state hospitality regulations. The agreement is particularly important in protecting both parties' interests and establishing clear operational parameters in the complex hospitality industry.
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1. Parties: Identification of the hotel owner and management company
2. Background: Context of the agreement and brief description of the property
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Scope of manager's authority and duration of the agreement
5. Manager's Duties and Responsibilities: Detailed obligations of the management company
6. Operating Standards: Required quality and service standards
7. Financial Management: Budget, accounting, and financial reporting requirements
8. Fees and Payments: Management fees, structure, and payment terms
9. Termination: Conditions for contract termination and consequences
1. Non-Compete: Restrictions on managing competing properties within specified geographic area
2. Brand Standards: Specific brand requirements and standards for branded hotel operations
3. Force Majeure: Provisions for handling extraordinary events and circumstances beyond parties' control
4. Employee Transfer: Provisions for staff transition and employment arrangements when taking over existing operations
1. Schedule 1 - Property Description: Detailed description of the hotel property and facilities
2. Schedule 2 - Performance Tests: Specific metrics for evaluating management performance
3. Schedule 3 - FF&E Requirements: Furniture, fixtures, and equipment specifications
4. Schedule 4 - Operating Budget Template: Standard format for annual budgets
5. Schedule 5 - Service Level Agreements: Detailed performance standards and metrics
6. Schedule 6 - Insurance Requirements: Specific insurance coverage requirements
7. Schedule 7 - Key Personnel: List of key management positions and qualifications
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