Hotel Management Agreements

News & Analysis as of

How will the 11th edition of the Uniform System affect your management agreement?

Hotel Lawyer: New Uniform System of Accounts will affect your hotel management and franchise agreements. Are you ready? Commencing January 1, 2015, the hotel industry will have a new, significantly revised set of...more

Why this may be the time to buy or sell a hotel management company A hot trend and five key issues

One of the hottest trends right now is buying (or selling) independent hotel management companies. The demand is coming from all directions – existing management companies, investment funds and foreign buyers. Existing...more

Comfort Letters - Comfort for Whom?

If you are buying, building or refinancing a hotel, you'll almost certainly be looking to a bank or other lender to finance the hotel, and when you do, you'll need to negotiate dozens of documents, some long, some short, but...more

Let's Clear the Air about Hotel Management Agreements

1. Owners and Managers are not partners. One of the common statements we hear from owners and managers is that the management agreement "aligns the interests" of the owner and the manager, and that the manager is "just like a...more

EB-5 and the Tenant Occupancy Issue as Applied to Hotel Employees

Since the release of its “Tenant Occupancy” Notice on February 17, 2012, the U.S. Citizenship and Immigration Services (“USCIS”) has begun issuing Requests for Evidence on pending regional center applications and exemplar...more

Hotel Management Agreement Termination Disputes: Is There Shelter from the Storm?

In the wake of Fairmont v. Turnberry and M Waikiki LLC v. Marriott Hotel Services in 2012, the hospitality industry was abuzz about the dramatic ousters of the hotel operators by the hotel owners. The sensational events...more

Abu Dhabi Investment Fund buying 3 Editions from Marriott. What does this mean to Marriott and the Edition brand?

Craig Karmin and Alexandra Berzon of the Wall Street Journal broke a big story yesterday evening which appeared in the August 15, 2013 US edition of the paper at page C3. The headline is "Marriott Close to Deal to Sell Three...more

Ace in the Hole: NY Court Gives Hotel Owner New Way to Oust Hotel Manager and (Re)Claim Management of the Property

A recent decision of the New York state appellate court has given hotel owners a new way to override contract provisions in long-term property management agreements and oust hotel managers from managing the property. In...more

Strategic Ouster of Hotel Operators: If You Can't Stop It, Discourage It

Do owners and operators drive the legal structure of hotel management agreements? They should, but some courts have concluded that principles of agency trump the bargain struck by sophisticated, well-represented parties that...more

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