Hotel Management Contract
Hotel Management Contract
This Hotel Management Contract ("Agreement") is made and entered into as of [Effective Date], by and between [Your Company Name], a [State/Country] corporation with its principal place of business at [Your Company Address] ("Owner"), and [Manager Name], a [State/Country] corporation with its principal place of business at [Manager Address] ("Manager"). Owner and Manager are collectively referred to herein as the "Parties" and individually as a "Party."
WHEREAS, Owner owns the hotel property located at [Your Company Address] ("Hotel") and desires to engage Manager to provide management services for the operation of the Hotel;
WHEREAS, Manager specializes in providing hotel management services and has the expertise and resources to assist Owner in achieving its operational and financial goals for the Hotel;
WHEREAS, Owner desires to engage Manager to provide the management services as described herein, and Manager agrees to provide such services in accordance with the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties agree as follows:
I. Scope of Services
A. Description of Management Services: Manager shall provide comprehensive management services for the Hotel, including but not limited to, operational management, financial management, marketing and sales, maintenance and repairs, and staff management.
B. Operational Responsibilities: Manager shall oversee all day-to-day operations of the Hotel, ensuring efficient and effective management of resources and services to enhance guest satisfaction and operational efficiency.
C. Financial Management: Manager shall handle all financial aspects of the Hotel, including budget preparation, revenue collection, expense management, and financial reporting.
D. Marketing and Sales: Manager shall develop and implement marketing and sales strategies to promote the Hotel, increase occupancy rates, and maximize revenue.
E. Maintenance and Repairs: Manager shall ensure that the Hotel is well-maintained, conducting routine maintenance and overseeing major repairs and renovations as needed.
F. Staff Management: Manager shall recruit, hire, train, and manage all Hotel staff, ensuring compliance with labor laws and maintaining high standards of performance and service.
II. Compensation and Payment Terms
A. Management Fees: Owner agrees to pay Manager a base management fee of $10,000 per month, payable on the first day of each month.
B. Incentive Fees: In addition to the base management fee, Manager shall be entitled to an incentive fee of 5% of the Hotel’s gross operating profit, payable quarterly.
C. Payment Schedule: All payments shall be made according to the schedule outlined above. Manager shall invoice Owner for the incentive fee within ten (10) days following the end of each quarter.
D. Reimbursement of Expenses: Any additional expenses incurred by Manager in the course of providing the services shall be reimbursed by Owner, provided that such expenses are pre-approved by Owner.
E. Taxes and Duties: Owner shall be responsible for all taxes, duties, and charges imposed by any governmental authority related to the fees paid under this Agreement.
III. Owner's Responsibilities
A. Provision of Funds: Owner shall ensure the availability of sufficient funds for the operation of the Hotel, including funds for routine maintenance, repairs, and other operational expenses.
B. Property Maintenance: Owner shall ensure that the Hotel property is maintained in good condition and shall provide for any major repairs or renovations as recommended by Manager.
C. Insurance Coverage: Owner shall maintain adequate insurance coverage for the Hotel, including property, liability, and business interruption insurance.
D. Compliance with Laws: Owner shall ensure that the Hotel complies with all applicable local, state, and federal laws, regulations, and codes.
IV. Manager's Responsibilities
A. Operational Management: Manager shall oversee the day-to-day operations of the Hotel, ensuring efficient and effective management of resources and services.
B. Financial Reporting: Manager shall prepare and provide detailed financial reports to Owner on a monthly basis, including profit and loss statements, cash flow statements, and budget variance reports.
C. Marketing and Sales Initiatives: Manager shall develop and implement marketing and sales strategies to promote the Hotel, increase occupancy rates, and maximize revenue.
D. Staff Recruitment and Training: Manager shall recruit, hire, train, and manage all Hotel staff, ensuring compliance with labor laws and maintaining high standards of performance and service.
V. Financial Management
A. Budget Preparation and Approval: Manager shall prepare an annual operating budget for the Hotel, which shall be submitted to Owner for approval at least sixty (60) days prior to the start of each fiscal year.
B. Revenue Collection: Manager shall be responsible for the collection of all revenues generated by the Hotel, including room rates, food and beverage sales, and other ancillary services.
C. Expense Management: Manager shall manage and control all expenses related to the operation of the Hotel, ensuring that costs are kept within the approved budget.
D. Profit and Loss Statements: Manager shall prepare monthly profit and loss statements and provide them to Owner within ten (10) days after the end of each month.
E. Audit and Inspection Rights: Owner shall have the right to audit the financial records of the Hotel and inspect the property upon reasonable notice to Manager.
VI. Marketing and Sales
A. Marketing Strategy and Plan: Manager shall develop and implement a comprehensive marketing strategy and plan for the Hotel, aimed at increasing visibility, attracting guests, and maximizing revenue.
B. Sales Targets and Goals: Manager shall set annual sales targets and goals for the Hotel, which shall be reviewed and approved by Owner.
C. Promotion and Advertising: Manager shall oversee all promotional and advertising activities for the Hotel, ensuring that they are conducted in a professional and cost-effective manner.
D. Guest Relations and Services: Manager shall implement programs and initiatives to enhance guest satisfaction and loyalty, including guest feedback and survey programs.
VII. Maintenance and Repairs
A. Routine Maintenance: Manager shall ensure that routine maintenance of the Hotel is conducted on a monthly basis to keep all facilities and equipment in good working order.
B. Major Repairs and Renovations: Manager shall oversee any major repairs or renovations needed for the Hotel. Such repairs and renovations must be approved by Owner before commencement.
C. Capital Expenditures: Manager shall prepare and submit an annual plan for capital expenditures to Owner for approval at least sixty (60) days prior to the start of each fiscal year.
D. Health and Safety Compliance: Manager shall ensure that all maintenance and repairs comply with applicable health and safety regulations to provide a safe environment for guests and staff.
VIII. Staff Management
A. Recruitment and Hiring: Manager shall be responsible for recruiting and hiring all Hotel staff, ensuring that all positions are filled with qualified individuals.
B. Training and Development: Manager shall provide ongoing training and development programs for all Hotel staff to enhance their skills and performance.
C. Employee Benefits and Compensation: Manager shall manage employee benefits and compensation in accordance with industry standards and applicable labor laws.
D. Compliance with Labor Laws: Manager shall ensure that all employment practices comply with local, state, and federal labor laws and regulations.
IX. Reporting and Records
A. Operational Reports: Manager shall provide Owner with detailed operational reports on a monthly basis, including occupancy rates, revenue reports, and guest satisfaction metrics.
B. Financial Reports: Manager shall prepare and provide detailed financial reports to Owner on a monthly basis, including profit and loss statements, cash flow statements, and budget variance reports.
C. Guest Feedback and Surveys: Manager shall implement and manage guest feedback and survey programs to monitor and improve guest satisfaction.
D. Record Keeping: Manager shall maintain accurate and up-to-date records of all Hotel operations, including financial transactions, guest feedback, maintenance activities, and staff management.
X. Indemnification and Liability
A. Indemnification by Owner: Owner agrees to indemnify and hold Manager harmless from any claims, damages, and expenses arising out of Manager's provision of the management services under this Agreement.
B. Indemnification by Manager: Manager agrees to indemnify and hold Owner harmless from any claims, damages, and expenses arising out of Owner's use of the management services provided under this Agreement.
C. Limitation of Liability: Manager's liability under this Agreement shall be limited to the amount of fees paid by Owner in the six (6) months preceding the claim. Neither Party shall be liable for any indirect, incidental, or consequential damages.
D. Insurance Requirements: Both Parties shall maintain adequate insurance coverage to cover their respective indemnification obligations under this Agreement.
XI. Termination
A. Termination by Owner: Owner may terminate this Agreement with sixty (60) days' written notice for any material breach of this Agreement by Manager, provided that the breach is not cured within the notice period.
B. Termination by Manager: Manager may terminate this Agreement with sixty (60) days' written notice for any material breach of this Agreement by Owner, provided that the breach is not cured within the notice period.
C. Termination for Convenience: Either Party may terminate this Agreement for convenience with ninety (90) days' written notice to the other Party.
D. Effects of Termination: Upon termination, Manager shall cease all management activities and return or destroy all confidential information and materials provided by Owner. Owner shall pay Manager for all services rendered up to the date of termination.
E. Survival of Obligations: The obligations of confidentiality, indemnification, and any other provisions that by their nature should survive termination shall remain in effect after the termination of this Agreement.
XII. Dispute Resolution
A. Negotiation and Mediation: The Parties agree to attempt to resolve any disputes arising out of this Agreement through good faith negotiations. If the dispute cannot be resolved through negotiation within thirty (30) days, the Parties shall submit the dispute to mediation.
B. Arbitration: If the Parties cannot resolve the dispute through mediation within sixty (60) days, the dispute shall be submitted to arbitration in [Jurisdiction] in accordance with the rules of the [Arbitration Organization]. The decision of the arbitrator shall be final and binding.
C. Jurisdiction and Venue: Any arbitration proceedings shall be conducted in [Jurisdiction], and the award of the arbitrator shall be enforceable in any court of competent jurisdiction.
XIII. Confidentiality
A. Definition of Confidential Information: Confidential information includes any non-public information disclosed by one Party to the other Party under this Agreement, including business plans, financial data, project details, and proprietary information.
B. Obligations of Confidentiality: Both Parties agree to maintain the confidentiality of any confidential information disclosed during the term of this Agreement. Neither Party shall disclose such information to any third party without the prior written consent of the disclosing Party.
C. Duration of Confidentiality Obligations: The obligations of confidentiality shall continue for a period of two (2) years after the termination of this Agreement.
D. Exceptions: Confidential information does not include information that is publicly known, already known to the recipient, independently developed, or lawfully disclosed by a third party.
XIV. Intellectual Property
A. Use of Trademarks and Logos: Manager is granted a non-exclusive, non-transferable license to use Owner’s trademarks and logos solely for the purpose of performing the management services specified in this Agreement.
B. Ownership of Work Product: All intellectual property and work product developed by Manager during the term of this Agreement shall remain the property of Manager. Owner is granted a non-exclusive license to use the work product for its internal purposes.
C. License to Use Intellectual Property: Any use of Manager’s intellectual property beyond the scope defined in this Agreement requires prior written consent from Manager.
D. Infringement Procedures: In the event of any suspected infringement of intellectual property rights, the affected Party shall promptly notify the other Party. The Parties shall cooperate in investigating and addressing any such infringement.
XV. Miscellaneous Provisions
A. Entire Agreement: This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, whether written or oral.
B. Amendments and Modifications: Any amendments or modifications to this Agreement must be in writing and signed by both Parties.
C. Assignment and Subcontracting: Neither Party may assign or subcontract its rights or obligations under this Agreement without the prior written consent of the other Party.
D. Notices: Any notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, sent by certified mail, or sent by email with confirmation of receipt.
E. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [State/Country].
F. Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
G. Force Majeure: Neither Party shall be liable for any failure or delay in performance due to circumstances beyond its reasonable control, including acts of God, war, terrorism, and natural disasters.
Signatures
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.
Owner
[Name]
[Date]
Manager
[Name]
[Date]
