Hotel Management Agreements: Navigating Fees, Exclusivity, Approval Rights, Finance Provisions, Brand Management

This CLE course will cover topics of central importance to counsel preparing or reviewing hotel management agreements from a range of perspectives—whether as counsel to the owner, operator, lender, or potential acquirer.

Hotel management agreements are complex, long-term agreements that dictate the allocation of the financial risk and reward and the operational control of a hotel between the owner and operator. For management companies, these agreements are the foundation of their “asset light” business models. For owners, these agreements are necessary to leverage the brand recognition and professional expertise of the management companies. How do lawyers think through and negotiate management agreements on behalf of owners and operators in light of these perspectives?

Understanding the particulars of hotel management agreements is essential to gauging hotel value and hotel financing. Whether representing owners or operators, counsel must understand the dynamic that gives rise to the incentives embodied in a hotel management agreement and how applicable law impacts the operator’s duties under a management agreement and an owner's ability to terminate a management agreement.

Listen as our authoritative panel analyzes evolving trends in hotel management agreements and critical terms such as duration, exclusivity, termination, and finance provisions. The panel will discuss the core topics and will impart best practices for negotiating the agreement.