Hotel Co-Ownership Agreement
Hotel Co-Ownership Agreement
This Hotel Co-Ownership Agreement ("Agreement") is entered into on [Date], by and between:
[Your Company Name], a company organized and existing under the laws of [Your Jurisdiction], having its principal place of business at [Your Company Address], represented herein by [Your Name], [Your Position], hereinafter referred to as the "First Party",
and
[Your Partner Company Name], a company organized and existing under the laws of [Partner's Jurisdiction], having its principal place of business at [Partner's Company Address], represented herein by [Partner's Name], [Partner's Position], hereinafter referred to as the "Second Party".
Background:
[Your Company Name] and [Your Partner Company Name] (collectively referred to as the "Parties") have identified a lucrative investment opportunity in the hospitality industry and desire to jointly invest in and co-own a hotel property located at [Hotel Address], herein referred to as the "Hotel".
Agreement Terms:
1. Co-Ownership Structure:
1.1 The Parties agree to co-own the Hotel in the following percentages:
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[Your Company Name]: [50]% ownership. This percentage reflects [Your Company Name]'s significant investment in the initial capital and operational infrastructure of the Hotel.
-
[Your Partner Company Name]: [50]% ownership. This percentage reflects [Your Partner Company Name]'s valuable contribution to the partnership, including expertise in hospitality management and marketing.
1.2 The ownership percentages shall dictate the distribution of profits, losses, and responsibilities related to the Hotel, unless otherwise agreed upon in writing by both Parties. Each Party shall be entitled to its respective share of income and shall bear its share of any losses incurred by the Hotel.
2. Management and Operation:
2.1 The Parties shall establish a management committee consisting of representatives from both Parties to oversee the management and operation of the Hotel. The committee shall meet [Frequency] to review the Hotel's performance, discuss strategic initiatives, and address any operational challenges
2.2 Decisions regarding major operational matters, including but not limited to staffing, marketing strategies, and capital investments, shall require mutual agreement between the Parties. Both Parties shall work collaboratively to ensure the Hotel's success and profitability.
2.3 Day-to-day operations shall be managed by a designated management team appointed by the management committee. The management team shall be responsible for implementing the strategies and directives set forth by the committee, maintaining operational efficiency, and delivering exceptional guest experiences.
3. Financial Matters:
3.1 The Parties shall share the costs and expenses associated with the Hotel in proportion to their ownership interests as stated in Section 1. These costs may include but are not limited to property maintenance, utilities, insurance premiums, and staff salaries.
3.2 All revenues generated by the Hotel shall be shared between the Parties according to their respective ownership percentages. Revenue distribution shall occur on a yearly basis and shall be accompanied by detailed financial statements outlining the Hotel's income and expenses.
3.3 Financial records shall be maintained accurately and made accessible to both Parties for review upon request. Both Parties shall have the right to conduct audits of the Hotel's financial records to ensure transparency and accountability in financial management.
4. Dispute Resolution:
4.1 In the event of any disputes arising under this Agreement, the Parties shall endeavor to resolve them amicably through negotiations. Both Parties shall approach dispute resolution with a spirit of cooperation and mutual respect, aiming to preserve the integrity of the partnership.
4.2 If a resolution cannot be reached through negotiations, the Parties agree to submit the dispute to mediation by a mutually agreed-upon third party. The mediator shall facilitate constructive dialogue between the Parties and assist in reaching a mutually acceptable resolution to the dispute.
5. Term and Termination:
5.1 This Agreement shall commence on the effective date set forth above and shall remain in full force and effect until terminated by mutual written agreement of the Parties. The Parties anticipate a long-term partnership and commitment to the successful operation of the Hotel.
5.2 Either Party may terminate this Agreement upon [Number] days’ written notice to the other Party in the event of a material breach of the terms herein by the other Party. Termination shall not affect any rights or obligations accrued prior to the termination date.
6. Governing Law:
6.1 This Agreement shall be governed by and construed in accordance with the laws of [Your Jurisdiction], without regard to its conflict of laws principles. Any disputes arising under this Agreement shall be resolved in accordance with the dispute resolution provisions set forth herein.
7. Entire Agreement:
7.1 This Agreement constitutes the entire understanding and agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements, negotiations, and understandings, whether oral or written, between the Parties relating to the same.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.
[Your Company Name]
[Your Name], [Your Position]
Date:
[Your Partner Company Name]
[Partner's Name], [Partner's Position]
Date:
