Operators may propose an HMA without any performance standard.

What does a typical Operator performance clause look like? If you would like to review why getting a great operator and a fair HMA are so critical to the success of your hotel, or if you missed any of the earlier series on this subject, please go to look under the TOPIC tab at the top of the home page, and then select “ Hotel Management Agreements” to see some great information. With experience gained in negotiating, re-negotiating, litigating, arbitrating and advising on more than 1,000 hotel management agreements and more than $87 billion of hotel transactions, the members of JMBM’s Global Hospitality Group® wanted to share some lessons learned. The Hotel Management Agreement or HMA is one of the most important factors in the financial success or failure of a hotel, and the value of an owner’s or lender’s interests in the property. Hotel Management Agreement performance standards Hotel Management Agreement performance standards - The Owner’s Return test Hotel Management Agreement performance standards - The Operator’s take Hotel management agreement performance standards and why they matter The complete series of hotel management agreement articles on performance standards is as follows: Today, we will analyze a typical Operator form of performance standard, and later we will look at a model better suited to an Owner’s interests. In the last article, we talked about Hotel Management Agreement performance standards and why they matter.

If you have missed some of the extensive ground covered here before, stop by particularly at Hotel Management Agreements. This article is one of a series of articles focusing on Hotel Management Agreements or HMAs as they are often called. Hotel Lawyer with more on HMA performance standards - the typical Operator clause. They are critical in determining the profitability and value of a hotel. Whatever they are called, Hotel Management Agreements allocate risk between the hotel manager and the hotel owner. For convenient reference, this article will generally use the term “Hotel Management Agreement” or “HMA.” However all these terms can be used interchangeably and mean the same thing, just as with hotel operator or hotel manager. They are called hotel management agreements, HMAs, hotel management contracts or hotel operating agreements. RFP for Hotel Operator, How to get a great hotel operator.Ĭontracts between hotel owners and managers (or operators) controlling the management of a hotel go by various names. Hotel Operator, Hotel Manager, Hotel Owner. Hotel Operating Agreement, HOA, Hotel Management Agreement, HMA, Hotel Management Contract, Management Contract.

Hotel management contract template