Hotel Management and Operations Agreement
Hotel Management and Operations Agreement
This Hotel Management and Operations Agreement ("Agreement") is entered into as of [Month Day, Year], by and between [Your Name], ("Owner") and [Management Company Name] ("Manager"). Owner and Manager are sometimes individually referred to as a "Party" and collectively referred to as the "Parties."
1. Definitions
For the purpose of this Agreement, the following terms shall have the meanings set forth below:
a. Hotel: The property located at [Your Company Address], which is the subject of this Agreement.
b. Gross Revenue: All monetary amounts derived from the operations of the Hotel, excluding any taxes collected directly from patrons.
c. Operating Expenses: All costs incurred in the operation of the Hotel, including but not limited to maintenance, staff salaries, utilities, and insurance.
2. Management Responsibilities
The Manager shall be responsible for the overall management and operation of the Hotel. This includes, but is not limited to, the following duties:
a. Staffing: Hiring, training, and supervising all employees necessary for the operation of the Hotel.
b. Maintenance: Ensuring that the Hotel is well-maintained, including regular inspections and necessary repairs.
c. Marketing: Implementing and managing marketing strategies to promote the Hotel and increase occupancy rates.
d. Financial Management: Overseeing all financial operations, including budgeting, accounting, and reporting to the Owner.
e. Compliance: Ensuring that the Hotel complies with all applicable laws, regulations, and industry standards.
3. Owner Responsibilities
The Owner agrees to fulfill the following responsibilities:
a. Funding: Providing necessary funds for the initial set-up and ongoing operations of the Hotel.
b. Policy Approval: Approving major policies and strategic decisions proposed by the Manager.
c. Asset Management: Ensuring that the Hotel premises and assets are adequately insured and maintained.
4. Compensation
As compensation for the services provided under this Agreement, the Manager shall receive the following:
a. Management Fee: A monthly management fee equal to [0]% of the Hotel's Gross Revenue, payable on the first day of each month.
b. Incentive Fee: An additional incentive fee of [0]% of the Net Operating Profit, payable annually.
5. Term and Termination
This Agreement shall commence on the date first written above and shall continue for an initial term of [0] years unless terminated earlier as provided herein. Either Party may terminate this Agreement with [0] days' written notice in the event of a material breach by the other Party, provided that such breach remains uncured for a period of [0] days following said notice.
6. Indemnification
Each Party agrees to indemnify, defend, and hold harmless the other Party from and against any and all claims, liabilities, losses, damages, and expenses (including reasonable attorneys' fees) arising from or in connection with the performance of its duties under this Agreement, except to the extent such claims arise from the other Party's gross negligence or willful misconduct.
7. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the state of [State], and the Parties hereby submit to the exclusive jurisdiction of the state and federal courts located therein.
8. Entire Agreement
This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral, relating to such subject matter.
9. Miscellaneous
This Agreement may be amended only by a written instrument signed by both Parties. The headings in this Agreement are for convenience only and shall not affect its interpretation. If any provision of this Agreement is found to be unenforceable, the remaining provisions shall continue in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written:
[Your Name]
[Owner]
[Full Name]
[Management Company Name]
