Hotel Management Contract Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

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."

Document background
The Hotel Management Contract Agreement is a crucial document used when a property owner wishes to engage a professional hotel operator to manage their hotel property in the UAE. This sophisticated agreement defines the complex relationship between the owner and operator, carefully balancing the operator's need for control over day-to-day operations with the owner's financial interests and asset protection. The document must comply with UAE federal laws and emirate-specific regulations while incorporating international hospitality best practices. It covers everything from operational standards and financial arrangements to staff management and brand requirements. Typically used for new hotel developments, rebranding exercises, or operator changes, this agreement forms the foundation of what is often a long-term business relationship spanning 15-20 years or more.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Hospitality

Real Estate

Tourism

Food and Beverage

Entertainment

Property Development

Asset Management

Facilities Management

Professional Services

Leisure and Recreation

Relevant Teams

Legal

Operations

Development

Asset Management

Finance

Commercial

Compliance

Real Estate

Technical Services

Executive Leadership

Property Management

Investment

Risk Management

Relevant Roles

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

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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