Are Hotel Managers Willing to Negotiate the Terms of a Hotel Management Agreement?
Yes. As a general rule, hotel management companies express a willingness to negotiate or modify the provisions of their form management agreements but are sometimes quite rigid in the positions that they take (particularly the larger, well-capitalized hotel management companies – especially national brands). As a result, negotiating the terms of a management agreement on behalf of an owner can be difficult and time-consuming, especially if the owner is not represented by counsel with the expertise to understand what provisions of the management agreement should be modified and to what extent the management companies are willing to so modify the provisions. However, because the respective rights of owner and manager can so materially affect the financial returns to the owner, in most cases it is worth the time and effort to negotiate with the hotel management company in order to execute an agreement containing at least the most important owner-oriented language in the key provisions of
Related Questions
- What settlement terms will the taxpayer be expected to agree to if some cash or property payments were made to the Management S Corporation by the operating business?
- Can you describe the management agreement that formalizes the relationship between real estate managers and property owners?
- Is CID willing to negotiate such terms into the final contract?
