The purpose of this resources is to discuss common hotel management agreement provisions and concepts in the United States. The authors will touch upon one or more topics which sparks a "I've always wondered why that is the way it is but nobody has taken the time to explain it" reaction with you. The hope the discussion goes some way to demystify the topic.
The 10-part series will cover the following topics:
1. Why is the manager's fee based on hotel's revenue and profit and not some other basis?
2. Why do some agreements provide that the manager is the owner's agent and some do not?
3. Why does the owner employ most or all of the hotel employees (and not the manager)?
4. What is the risk/reward relationship between an owner and manager?
5. Why does the owner indemnify the manager?
6. Why do we need a non-disturbance deed between the owner, manager and financier?
7. Why the need for an area of protection?
8. Why is the owner usually prevented from selling the hotel to one of the manager's competitors?
9. Why does the manager impose restrictions on the owner's ability to finance the hotel?
10. What is the importance of brand standards?
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