Hotel Management Contracts vs. Tourist Operation Leases
Classified in Language
Written at on English with a size of 3.22 KB.
Hotel Management Agreements
Definition
A hotel management contract is an arrangement whereby a hotel's owner contracts with a separate company, or an operator, to run a hotel. The owner retains limited control over the operation of the asset, often through measurable performance standards, albeit that the owner retains more risk than if the hotel were leased to the operator.
An operator, or hotel management company, hired to run a hotel business will provide supervision, expertise, established methods and procedures, and normally also a track record of verifiable past performance. The operator runs the hotel for a fee according to specified terms negotiated with the owner.
Term
The initial term of a management contract is the length of time that... Continue reading "Hotel Management Contracts vs. Tourist Operation Leases" »