Hotel Management Agreement

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Hotel Management Agreement

Hotel Management Agreement

{{company_name}} {{company_address}} Phone: {{phone}} Email: {{email}} Website: {{website}}

PARTIES TO THE AGREEMENT

This Hotel Management Agreement ("Agreement") is made and entered into on this {{day}} day of {{month}}, {{year}}, By and Between:

{{owner_company_name}}, a company duly incorporated under the laws of {{owner_jurisdiction}}, with its principal place of business at {{owner_address}} (hereinafter referred to as "Owner");

And

{{manager_company_name}}, a company duly incorporated under the laws of {{manager_jurisdiction}}, with its principal place of business at {{manager_address}} (hereinafter referred to as "Manager").

Collectively referred to as the “Parties” and individually as a “Party”.

RECITALS

WHEREAS, the Owner is the legal and beneficial owner of the hotel property located at {{hotel_address}}, known as {{hotel_name}} (the “Hotel”);

WHEREAS, the Manager possesses expertise and experience in hotel management and operations;

WHEREAS, the Owner desires to engage the Manager to operate, manage, and supervise the Hotel in accordance with the terms and conditions hereinafter set forth; and

WHEREAS, the Manager is willing to accept such engagement on the terms and conditions set forth herein.

APPOINTMENT AND TERM

1.1. Appointment: The Owner hereby appoints the Manager, and the Manager hereby accepts such appointment, to manage, operate, and supervise the Hotel on an exclusive basis during the Term of this Agreement.

1.2. Term: This Agreement shall commence on {{start_date}} and shall continue for an initial term of {{initial_term_years}} ({{initial_term_years_words}}) years, unless terminated earlier in accordance with the provisions of this Agreement (the “Initial Term”).

1.3. Renewal: This Agreement may be renewed for {{renewal_term_years}} ({{renewal_term_years_words}}) year periods upon mutual written agreement of both Parties, subject to renegotiation of terms and conditions.

MANAGER'S RESPONSIBILITIES

The Manager shall have the sole and exclusive right and obligation to manage, operate, maintain, and control the Hotel prudently and efficiently in accordance with sound business practices and the Owner's interests, including but not limited to:

a. Marketing and Sales: Developing and implementing marketing, advertising, and sales strategies to maximize Hotel occupancy and revenue.

b. Personnel: Recruiting, hiring, training, supervising, and terminating all Hotel employees, including the Hotel General Manager, and establishing employee policies and procedures.

c. Financial Management: Preparing budgets, financial forecasts, managing revenues and expenditures, maintaining accurate accounting records, and providing regular financial reports to the Owner.

d. Maintenance and Upkeep: Ensuring the Hotel and its facilities are well-maintained, clean, and in good repair, recommending and overseeing capital expenditures, and implementing preventative maintenance programs.

e. Guest Services: Ensuring high standards of guest service and satisfaction.

f. Compliance: Ensuring the Hotel operates in full compliance with all applicable laws, regulations, licenses, and permits in {{jurisdiction}}.

OWNER'S OBLIGATIONS

The Owner shall:

a. Provide Funding: Provide adequate working capital and funds as reasonably required by the Manager for the operation, maintenance, and capital improvements of the Hotel, as approved in the annual budget.

b. Title and Ownership: Maintain clear title to the Hotel property and ensure all necessary licenses and permits for Hotel operation are in place.

c. Insurance: Procure and maintain appropriate insurance coverage for the Hotel, its assets, employees, and operations as mutually agreed upon.

d. Cooperation: Cooperate fully with the Manager in all aspects relating to the management and operation of the Hotel.

FEES AND REIMBURSEMENTS

3.1. Management Fees: The Owner shall pay the Manager a base management fee equal to {{base_fee_percentage}}% of the Gross Operating Revenue of the Hotel, payable monthly. An incentive fee of {{incentive_fee_percentage}}% of the Gross Operating Profit exceeding the budgeted Gross Operating Profit by {{threshold_percentage}}% shall also be paid quarterly.

3.2. Reimbursement of Expenses: The Owner shall reimburse the Manager for all reasonable and necessary out-of-pocket expenses incurred by the Manager in the performance of its duties under this Agreement, provided such expenses are properly documented and approved in accordance with the annual budget.

REPORTING AND ACCOUNTING

The Manager shall provide the Owner with the following reports:

a. Monthly Operating Statements: Within {{days_monthly_report}} days after the end of each month, a detailed statement of the Hotel's operations, including revenue, expenses, and profit and loss.

b. Quarterly Financial Reports: Within {{days_quarterly_report}} days after the end of each quarter, a comprehensive financial report.

c. Annual Budget and Business Plan: The Manager shall submit to the Owner for approval, at least {{days_annual_plan}} days prior to the start of each fiscal year, an annual operating budget and business plan for the Hotel.

TERMINATION

4.1. Termination for Cause: Either Party may terminate this Agreement for cause upon written notice to the other Party if the other Party commits a material breach of this Agreement and fails to cure such breach within {{cure_period_days}} days after receipt of written notice.

4.2. Termination Without Cause: The Owner may terminate this Agreement without cause by providing {{notice_period_months}} months' written notice to the Manager, subject to payment of an agreed-upon termination fee as per Schedule A.

4.3. Effect of Termination: Upon termination, the Manager shall deliver all Hotel property, records, and accounts to the Owner and provide reasonable assistance to transition management to a new entity.

GOVERNING LAW AND DISPUTE RESOLUTION

5.1. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of {{jurisdiction}}.

5.2. Dispute Resolution: Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be settled by arbitration in accordance with the rules of the {{arbitration_body}}.

GENERAL PROVISIONS

6.1. Entire Agreement: This Agreement constitutes the entire agreement between the Parties and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

6.2. Amendments: No amendment or modification of this Agreement shall be valid unless in writing and signed by duly authorized representatives of both Parties.

6.3. Notices: All notices hereunder shall be in writing and shall be deemed to have been duly given when delivered personally, sent by registered mail, or by reputable courier service to the addresses specified above.

6.4. Force Majeure: Neither Party shall be liable for any failure or delay in performing its obligations under this Agreement if such failure or delay is caused by circumstances beyond its reasonable control.

SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Hotel Management Agreement as of the date first written above.

FOR AND ON BEHALF OF [OWNER COMPANY NAME]:

_____________________________

Name: {{owner_signatory_name}}

Title: {{owner_signatory_title}}

Date: {{owner_signature_date}}

FOR AND ON BEHALF OF [MANAGER COMPANY NAME]:

_____________________________

Name: {{manager_signatory_name}}

Title: {{manager_signatory_title}}

Date: {{manager_signature_date}}