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Hotel Management Contract Agreement Template for Australia

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Key Requirements PROMPT example:

Hotel Management Contract Agreement

"I need a Hotel Management Contract Agreement for my new 200-room luxury hotel in Brisbane, which will be managed by an international hotel chain starting March 2025, with specific provisions for spa facilities and conference center operations."

Document background
The Hotel Management Contract Agreement is a crucial document used when a property owner seeks to engage a professional hotel management company to operate their hotel property in Australia. This agreement is particularly relevant for new hotel developments, rebranding situations, or when transitioning between management companies. The document comprehensively addresses all aspects of the hotel operation, including management fees, operational standards, staffing, financial reporting, and performance metrics. It needs to comply with Australian federal and state regulations, particularly in areas of employment law, health and safety, liquor licensing, and property management. The agreement is designed to protect both parties' interests while ensuring efficient hotel operations and clear accountability. It's especially important in the Australian market where hotel management contracts often involve international hotel brands operating local properties, requiring careful consideration of both global standards and local regulatory requirements.
Suggested Sections

1. Parties: Identifies and defines the Hotel Owner and the Hotel Management Company

2. Background: Sets out the context of the agreement, including property details and parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Term: Establishes the appointment of the manager and duration of the agreement

5. Manager's Rights and Responsibilities: Details the scope of authority and duties of the management company

6. Owner's Rights and Obligations: Outlines the owner's responsibilities and retained rights

7. Staff and Employment: Covers employment arrangements, policies, and responsibilities

8. Operating Standards: Establishes the required standards of hotel operation and brand requirements

9. Budgets and Financial Management: Details financial planning, reporting requirements, and approval processes

10. Fees and Payments: Specifies all management fees, calculations, and payment terms

11. FF&E and Capital Expenditure: Covers furniture, fixtures, equipment, and capital improvement requirements

12. Insurance and Indemnification: Details required insurance coverage and indemnification obligations

13. Default and Termination: Specifies events of default and termination procedures

14. Post-Termination Obligations: Outlines obligations and procedures following agreement termination

15. Dispute Resolution: Establishes procedures for resolving disputes between parties

16. General Provisions: Contains standard boilerplate clauses including notices, assignment, and amendments

Optional Sections

1. Brand Standards: Required when the hotel is part of a branded chain, detailing specific brand requirements and standards

2. Intellectual Property: Needed when the agreement involves use of branded materials, trademarks, or proprietary systems

3. Non-Compete Provisions: Used when restricting the manager's ability to operate competing properties in the area

4. Environmental Compliance: Required for properties with specific environmental obligations or certifications

5. Gaming Operations: Necessary when the hotel includes casino or gaming facilities

6. Spa/Recreation Facilities: Required when the property includes spa or significant recreational facilities

7. Mixed-Use Provisions: Needed when the hotel is part of a mixed-use development

8. Force Majeure: Detailed provisions for handling extraordinary events, particularly relevant post-COVID

9. International Operations: Required for hotels with international brand standards or cross-border operations

Suggested Schedules

1. Property Description: Detailed description of the hotel property, including legal description and included facilities

2. Initial Budget: First year's operating budget and financial projections

3. Performance Tests: Specific metrics and standards for evaluating manager's performance

4. FF&E Requirements: Detailed specifications for furniture, fixtures, and equipment standards

5. Key Personnel: List of key management positions and their qualifications

6. Brand Standards Manual: Detailed brand requirements and operating procedures

7. Service Level Agreements: Specific performance metrics and service standards

8. Insurance Requirements: Detailed insurance coverage requirements and minimum limits

9. Excluded Assets and Operations: List of any assets or operations not included in the management agreement

10. Pre-Opening Services: Detailed requirements and timeline for hotel opening or transition

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






















































Clauses









































Relevant Industries

Hospitality

Real Estate

Tourism

Property Development

Hotel Management

Commercial Property

Asset Management

Property Investment

Relevant Teams

Legal

Operations

Asset Management

Property Development

Finance

Human Resources

Risk and Compliance

Commercial

Business Development

Executive Leadership

Relevant Roles

Hotel General Manager

Property Owner

Asset Manager

Chief Executive Officer

Chief Operating Officer

Hotel Operations Director

Legal Counsel

Contract Manager

Property Development Manager

Financial Controller

Human Resources Director

Commercial Director

Risk Manager

Compliance Officer

Regional Director of Operations

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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