This hotel management agreement template has 5 pages and is a MS Word file type listed under our human resources documents.
Sample of our hotel management agreement template:
HOTEL MANAGEMENT AGREEMENT This Hotel Management Agreement (the "Agreement") is effective [DATE], BETWEEN: [HOTEL OWNER NAME] (the "Owner"), an individual/entity with its principal place of residence/business located at: [YOUR COMPLETE ADDRESS] AND: [MANAGEMENT COMPANY NAME] (the "Manager"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, the Owner owns the hotel property located at [HOTEL ADDRESS] (the "Hotel"); WHEREAS, the Owner desires to engage the Manager to operate and manage the Hotel on behalf of the Owner, and the 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 hereto agree as follows: APPOINTMENT OF MANAGER Engagement: The Owner hereby engages the Manager to operate, supervise, and manage the Hotel on behalf of the Owner, and the Manager accepts such appointment, subject to the terms and conditions of this Agreement. Exclusive Management: The Manager shall have the exclusive right and authority to manage the Hotel during the term of this Agreement. SCOPE OF SERVICES 2.1 Management Services: The Manager agrees to provide day-to-day management of the Hotel, including but not limited to the following: Supervision of all Hotel staff, including hiring, training, and terminating employees as necessary. Management of all Hotel operations, including front desk, housekeeping, food and beverage, and maintenance. Financial management, including preparation of budgets, management of accounts receivable and payable, payroll, and tax compliance. Marketing and promotion of the Hotel, including advertising, pricing strategies, and reservation management. Compliance with all applicable laws and regulations related to the operation of the Hotel. 2.2 Purchasing Authority: The Manager is authorized to purchase goods and services necessary for the operation of the Hotel, provided such purchases are within the approved budget and consistent with the Hotel's operating needs. TERM OF AGREEMENT 3.1 Initial Term: This Agreement shall commence on [START DATE] and continue for a period of [NUMBER OF YEARS] years, unless terminated earlier in accordance with the terms of this Agreement. 3.2 Renewal: Upon expiration of the initial term, this Agreement may be renewed for additional [NUMBER OF YEARS] year terms by mutual written agreement of the Parties. MANAGEMENT FEES 4.1 Management Fee: The Owner agrees to pay the Manager a management fee of [PERCENTAGE OR AMOUNT] of the Hotel's gross revenues per month for the management services provided under this Agreement. 4.2 Incentive Fee: In addition to the base management fee, the Manager shall be entitled to an incentive fee of [PERCENTAGE OR AMOUNT] of the Hotel's net operating income (NOI) in excess of [SPECIFIED THRESHOLD] for the applicable fiscal year. 4.3 Payment Terms: The management fee and incentive fee, if applicable, shall be payable [MONTHLY/QUARTERLY] within [NUMBER OF DAYS] days of the close of each accounting period. OWNER RESPONSIBILITIES 5.1 Access to Hotel: The Owner agrees to provide the Manager with access to the Hotel premises and facilities at all reasonable times to allow the Manager to perform its duties under this Agreement. 5.2 Approval of Budget: The Owner shall review and approve the annual operating budget prepared by the Manager. Any significant deviation from the approved budget must be pre-approved by the Owner. 5.3 Capital Expenditures: The Owner is responsible for funding any major capital improvements, repairs, or renovations required at the Hotel, unless otherwise agreed. FINANCIAL MANAGEMENT 6.1 Bank Accounts: The Manager shall maintain separate bank accounts for the Hotel's operations. All revenue generated from the operation of the Hotel shall be deposited into these accounts, and all operating expenses shall be paid from these accounts. 6
