Hotel Management Contract

Hotel Management Contract Template for Denmark

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Document background

The Hotel Management Contract is a sophisticated agreement used when a hotel owner wishes to engage a professional hotel management company to operate their property in Denmark. This arrangement allows the owner to benefit from professional expertise while maintaining ownership of the asset. The document comprehensively addresses operational, financial, and legal aspects of hotel management, including compliance with Danish hospitality regulations, employment laws, and EU directives. It typically includes detailed provisions for brand standards, performance metrics, financial reporting, staff management, and risk allocation. The agreement is particularly relevant in the Danish market where international hotel brands often manage locally-owned properties, requiring careful balance between global operational standards and local legal requirements.

Suggested Sections

1. Parties: Identification of the Hotel Owner and the Hotel Management Company

2. Background: Context of the agreement, including property details and purpose of the management arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Term: Scope of manager's appointment, duration of the agreement, and renewal terms

5. Manager's Rights and Obligations: Comprehensive outline of the management company's responsibilities and authority

6. Owner's Rights and Obligations: Details of the owner's responsibilities, including funding obligations and owner approvals

7. Staff and Employment: Employment arrangements, staff policies, and allocation of employment responsibilities

8. Operating Standards: Required service levels, brand standards, and quality requirements

9. Budgets and Business Plans: Process for preparing, approving, and implementing annual budgets and business plans

10. Financial Arrangements: Management fees, expense allocations, and financial reporting requirements

11. FF&E and Capital Expenditure: Provisions for furniture, fixtures, equipment, and capital improvements

12. Insurance: Required insurance coverage and allocation of insurance responsibilities

13. Intellectual Property: Usage of brands, trademarks, and other intellectual property

14. Termination: Grounds for termination, termination process, and post-termination obligations

15. Indemnification: Mutual indemnification provisions and liability limitations

16. Governing Law and Dispute Resolution: Choice of law, jurisdiction, and dispute resolution mechanisms

Optional Sections

1. Non-Compete: Restrictions on manager operating competing hotels within specified area - include when exclusivity is required

2. Performance Test: Specific performance metrics and consequences of failure - include for larger or luxury properties

3. Force Majeure: Provisions for extraordinary events affecting operations - particularly relevant post-COVID

4. Environmental Compliance: Specific environmental obligations - include for properties with significant environmental impact

5. Mixed-Use Provisions: Special provisions for hotels part of mixed-use developments - include when applicable

6. Residential Component: Provisions for managing residential units - include for properties with serviced apartments

7. Casino/Gaming: Special provisions for gaming operations - include for properties with casino facilities

8. Data Protection: Detailed GDPR compliance provisions - include when extensive customer data processing occurs

Suggested Schedules

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

2. Brand Standards Manual: Detailed brand and operating standards required by the management company

3. FF&E Specifications: Detailed specifications for furniture, fixtures, and equipment

4. Initial Budget: First year's operating budget and business plan

5. Key Performance Indicators: Detailed performance metrics and calculation methodologies

6. Employee Handbook: Staff policies and procedures

7. Technical Services Agreement: Specifications for technical services and support

8. Service Level Agreements: Detailed service standards for different aspects of hotel operation

9. Insurance Requirements: Detailed insurance coverage requirements and specifications

10. Fee Structure: Detailed breakdown of management fees, including calculations and examples

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