The Termination of Hotel Management Agreements

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Partners Todd E. Soloway and Joshua D. Bernstein, members of Pryor Cashman's Real Estate Litigation Group, have authored an article entitled “The Termination of Hotel Management Agreements” which appeared in the April 18, 2012 edition of the New York Law Journal.

The article examines the issues surrounding owners of luxury hotels who terminate their long-term hotel management agreements. Given the structure of most hotel management agreements (and in some cases despite the blatant breach of the hotel management contract by the owner), unless a hotel management company has a present ownership interest in the hotel, the authors note that courts routinely reject attempts to enjoin the termination of the management agreement.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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