Hotel Profit Sharing Agreement

This Hotel Profit Sharing Agreement ("Agreement") is made and entered into as of [Month Day, Year] by and between [Your Company Name], with its principal place of business located at [Your Company Address] ("First Party"), and [Your Partner Company Name / Second Party], with its principal place of business located at [Your Partner Company Name / Second Party Address] ("Second Party"). Collectively, the First Party and the Second Party may be referred to as the "Parties" or individually as a "Party."

1. Recitals

WHEREAS, the First Party owns and operates certain hotel properties and has expertise in the hospitality industry;

WHEREAS, the Second Party has experience and expertise in marketing and sales within the hospitality sector;

WHEREAS, the Parties desire to collaborate for the mutual benefit to share the profits generated from the specified hotel properties;

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties agree as follows:

2. Definitions

"Gross Revenue" shall mean all income received from the hotel operations, including but not limited to room bookings, food and beverage sales, event hosting, and other ancillary services.
"Net Profit" shall mean the Gross Revenue less any operating expenses, taxes, and other costs directly associated with running the hotel properties.
"Profit Sharing Percentage" shall refer to the percentage of the Net Profit agreed upon for distribution between the Parties.

3. Scope of Collaboration

3.1 First Party Responsibilities: The Hotel shall be responsible for managing the day-to-day operations of the hotel properties. This includes:

Staffing: Hiring, training, and managing hotel staff to ensure high-quality service and operational efficiency.
Maintenance: Overseeing the maintenance and upkeep of hotel facilities and amenities to ensure guest satisfaction and safety.
Guest Services: Managing guest services to ensure a positive guest experience, including front desk operations, housekeeping, and concierge services.

3.2 Second Party Responsibilities: The Partner shall focus on marketing and sales initiatives aimed at increasing the hotel's visibility and revenue stream. This includes:

Advertising Campaigns: Developing and executing advertising campaigns across various media channels to attract new guests.
Online Marketing: Utilizing online marketing strategies, including social media, search engine optimization (SEO), and pay-per-click (PPC) advertising to drive traffic to the hotel's website.
Partnerships: Establishing and maintaining partnerships with travel agencies, tour operators, and other relevant entities to promote the hotel.

3.3 Joint Responsibilities: Both Parties agree to collaborate and share resources to ensure the successful operation and profitability of the hotel properties. This includes:

Regular Meetings: Conducting regular meetings to discuss performance, share insights, and strategize on future initiatives.
Resource Allocation: Sharing resources such as marketing materials, staff training programs, and operational tools to enhance overall efficiency and effectiveness.
Performance Monitoring: Monitoring key performance indicators (KPIs) and financial metrics to assess the success of joint efforts and make necessary adjustments.

4. Profit Sharing

The Parties agree to share the Net Profit generated from the hotel operations according to the following Profit Sharing Percentages:

First Party: [0]%
Second Party: [0]%

The Profit Sharing Percentages may be reviewed and, if necessary, adjusted annually upon mutual agreement of the Parties.

5. Financial Reporting

5.1 Maintenance of Records: The Hotel shall maintain accurate and complete financial records of its operations in accordance with generally accepted accounting principles (GAAP). These records shall be accessible to the Partner for review upon reasonable request and during normal business hours.

5.2 Quarterly Financial Reports: At the end of each fiscal quarter, the Hotel shall prepare and provide a detailed financial report to the Partner. This report shall include:

Gross Revenue: A comprehensive breakdown of all income received from hotel operations, categorized by revenue streams such as room bookings, food and beverage sales, event hosting, and other ancillary services.
Operating Expenses: A detailed account of all operating expenses incurred during the fiscal quarter, including but not limited to salaries, utilities, maintenance, supplies, marketing, and administrative expenses.
Net Profit: The calculation of Net Profit, derived from subtracting the total operating expenses from the Gross Revenue.

5.3 Basis for Profit Sharing: The financial reports provided by the Hotel shall serve as the basis for calculating the Profit Sharing distribution between the Parties. The Profit Share for each fiscal quarter shall be determined based on the Net Profit outlined in the corresponding financial report.

6. Duration and Termination

6.1 Term: This Agreement shall commence on the Effective Date and continue for a period of [0] years, unless terminated earlier in accordance with the provisions of this Agreement.

6.2 Termination for Material Breach: Either Party may terminate this Agreement by providing [0] months' written notice to the other Party in the event of a material breach of any term or condition of this Agreement. The breaching Party shall have [0] days to cure the breach following receipt of such notice. If the breach is not cured within this period, the Agreement shall terminate at the end of the [0] month notice period.

6.3 Termination for Convenience: Either Party may terminate this Agreement for any reason by providing [0] months' written notice to the other Party.

6.4 Reconciliation and Final Settlement: Upon termination of this Agreement, the Parties shall reconcile any outstanding financial obligations. The Hotel shall prepare a final financial report covering the period up to the termination date and calculate the final Profit Share due to the Partner. All payments due shall be made within [0] days of the termination date.

6.5 Effect of Termination: Upon termination, this Agreement shall be rendered null and void, and neither Party shall have any further obligations under this Agreement except for obligations that expressly survive termination, including confidentiality, indemnification, and the settlement of outstanding financial obligations.

7. Confidentiality

7.1 Confidential Information: Both Parties agree to maintain the confidentiality of all information and data related to the other Party's business operations obtained during the course of this Agreement. Confidential information includes, but is not limited to, business strategies, financial data, customer lists, marketing plans, and any other proprietary information.

7.2 Non-Disclosure: Neither Party shall disclose such confidential information to any third party without the prior written consent of the other Party. This obligation extends to employees, agents, and subcontractors who may have access to the confidential information.

7.3 Use of Information: The Parties agree to use the confidential information solely for the purposes of fulfilling their obligations under this Agreement and not for any other purpose.

7.4 Protection Measures: Each Party agrees to take all reasonable measures to protect the confidentiality of the information and to prevent unauthorized disclosure. This includes implementing appropriate security measures and ensuring that all personnel who have access to the information are bound by confidentiality obligations.

7.5 Survival: The obligations of confidentiality set forth in this Section [0] shall survive the termination of this Agreement for a period of [0] years from the date of termination.

8. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of [State] and the applicable laws of the United States. Any legal actions, suits, or proceedings arising out of or related to this Agreement shall be brought exclusively in the courts located in [City, State]. The Parties hereby consent to the jurisdiction of such courts and waive any objection to the laying of venue in such courts. The Parties further agree that the United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

9. Miscellaneous

This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, understandings, and communications, whether written or oral, concerning the subject matter herein.

Any modification or amendment to this Agreement shall be effective only if made in writing and signed by both Parties.

If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect.

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties hereto have executed this Hotel Profit Sharing Agreement as of the day and year first above written.

[Your Name]

[Title]
[Your Company Name]

[Full Name]

[Title]
[Your Partner Company Name / Second Party]