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How To Negotiate A Hotel Management Agreement

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Here are our 10 tips for negotiating hotel management contracts: But beyond the specific clauses or formulations, the most important element in negotiating the correct management contract is to communicate the objectives of the owner and achieve a position of harmonious coordination between the owner and the manager. The owner usually requests and obtains the right to interview candidates and authorize the recruitment of key personnel such as the General Manager, Controller, and Director of Marketing and Sales. However, management companies may negotiate limits on the number of qualified candidates who can be rejected by the owner before the management company can make its choice for the best candidate. The owner may also obtain the consideration in good faith of the owner`s complaints about the performance of personnel by the management company, but the decision to dismiss or not is usually exclusively the decision of the management company. Consider inserting an exclusion clause that defines the above for the future. Prepare and adapt the fees to the situation of each hotel. This webinar provided practical tips for negotiating term sheets and hotel management contracts to achieve maximum return on investment while matching the interests of owners and executives. Takeaways Included: This is usually a two-way test. .

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