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Hotel Management Contract Agreement
"I need a Hotel Management Contract Agreement for a 5-star luxury beach resort in Dubai, where I'm the property owner engaging an international hotel chain as the operator, with strict performance clauses and the ability to terminate if RevPAR targets aren't met for two consecutive years."
1. Parties: Identification of the Hotel Owner and the Hotel Operator, including full legal names and addresses
2. Background: Context of the agreement, including property details and parties' intentions
3. Definitions: Comprehensive definitions of terms used throughout the agreement
4. Appointment and Term: Scope of operator's appointment, term length, and renewal conditions
5. Hotel Standards: Brand standards, quality requirements, and service levels to be maintained
6. Operator's Rights and Obligations: Detailed responsibilities of the operator in managing the hotel
7. Owner's Rights and Obligations: Owner's responsibilities, including funding obligations and maintenance requirements
8. Staff and Employment: Employment arrangements, staffing requirements, and related responsibilities
9. Operating Accounts and Fees: Financial arrangements, including management fees, operating accounts, and reporting requirements
10. Budgets and Business Plans: Process for preparing and approving annual budgets and business plans
11. FF&E and Capital Expenditure: Requirements for furniture, fixtures, equipment, and capital improvements
12. Insurance: Required insurance coverage and related obligations
13. Intellectual Property: Usage of trademarks, brands, and other intellectual property
14. Termination: Grounds for termination and consequences thereof
15. Post-Termination: Obligations and procedures following agreement termination
16. Indemnification: Mutual indemnification obligations and limitations
17. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law
18. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Pre-Opening Services: Used when the hotel is not yet operational, detailing services to be provided before opening
2. Restricted Competitive Activities: Include when restricting operator from managing competing properties in the area
3. Mixed-Use Property Provisions: Required when the hotel is part of a larger mixed-use development
4. Residences Management: Include when the property includes serviced residences or branded residential units
5. Gaming Facilities: Required if the property includes gaming facilities (where legally permitted)
6. Force Majeure: Detailed force majeure provisions, particularly relevant post-COVID
7. Environmental Compliance: Enhanced environmental provisions for green-certified or sustainability-focused properties
8. Owner's Reserved Rights: Include when owner retains specific operational or decision-making rights
9. Performance Test: Include when owner requires specific performance metrics for operator continuation
1. Property Description: Detailed description of the hotel property, including legal description and plans
2. FF&E Inventory: Comprehensive inventory of furniture, fixtures, and equipment
3. Brand Standards: Detailed brand standards and operating procedures
4. Initial Operating Budget: First year's operating budget and financial projections
5. Key Performance Indicators: Specific performance metrics and calculation methodologies
6. Management Fee Structure: Detailed breakdown of base and incentive fee calculations
7. Required Insurance: Specific insurance requirements and minimum coverage levels
8. Pre-Opening Budget: Budget and timeline for pre-opening activities
9. Competitive Set: List of comparable properties for performance benchmarking
10. Reserved Owner Decisions: List of decisions requiring owner approval
11. Key Personnel: List of key management positions and qualifications
12. Technical Services: Scope of technical services to be provided by operator
Authors
Affiliate
Annual Budget
Annual Business Plan
Base Fee
Brand
Brand Standards
Capital Expenditure
Commencement Date
Competitive Set
Confidential Information
Contract Year
Effective Date
Emergency
Employee Costs
FF&E
FF&E Reserve
Force Majeure Event
Gross Operating Profit
Gross Revenue
Hotel
Hotel Accounts
Hotel Employees
Hotel Standards
Incentive Fee
Initial Term
Intellectual Property Rights
Key Money
Key Personnel
Management Fees
Operating Accounts
Operating Expenses
Operating Supplies
Operating Term
Operator
Operator's Marks
Owner
Owner's Representative
Performance Test
Pre-Opening Period
Pre-Opening Services
Property
Renewal Term
RevPAR
Technical Services
Term
Territory
UAE Dirham
Working Capital
Centralized Services
Chain Services
Operating Licenses
System Standards
Quality Assurance Program
Revenue Management System
Marketing Program
Loyalty Program
Group Services
DTCM Requirements
ADR (Average Daily Rate)
GOP (Gross Operating Profit)
Force Majeure
Fiscal Year
Environmental Laws
Governing Law
Material Breach
Operating Equipment
Permitted Use
Project Cost
Term and Renewal
Operating Standards
Pre-Opening Services
Management Authority
Operator Responsibilities
Owner Responsibilities
Staffing and Employment
Financial Management
Budgeting and Reporting
Management Fees
Operating Expenses
FF&E and Capital Expenditure
Marketing and Promotion
Intellectual Property
Brand Standards
Insurance
Indemnification
Performance Tests
Termination Rights
Post-Termination Obligations
Non-Compete
Confidentiality
Force Majeure
Assignment and Transfer
Dispute Resolution
Governing Law
Notices
Representations and Warranties
Environmental Compliance
Health and Safety
Compliance with Laws
Technical Services
Asset Management
Bank Accounts
Working Capital
Books and Records
Centralized Services
Emergency Powers
Risk Management
Data Protection
Guest Privacy
Taxation
Property Maintenance
Quality Control
Chain Services
Revenue Management
Alterations and Improvements
License and Permits
Change in Control
Severability
Entire Agreement
Hospitality
Real Estate
Tourism
Food and Beverage
Entertainment
Property Development
Asset Management
Facilities Management
Professional Services
Leisure and Recreation
Legal
Operations
Development
Asset Management
Finance
Commercial
Compliance
Real Estate
Technical Services
Executive Leadership
Property Management
Investment
Risk Management
Chief Executive Officer
Chief Legal Officer
General Counsel
Hotel General Manager
Development Director
Asset Manager
Operations Director
Chief Financial Officer
Hotel Owner
Managing Director
Legal Director
Commercial Director
Property Development Manager
Investment Manager
Hospitality Consultant
Technical Services Director
Compliance Officer
Real Estate Director
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