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Hotel Management Contract Agreement for Hong Kong

Hotel Management Contract Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the relationship between a hotel owner and a hotel management company. This document outlines the terms and conditions under which the management company will operate the hotel property, including operational standards, financial arrangements, staffing requirements, and performance metrics. It incorporates Hong Kong's specific regulatory requirements for hotel operations, employment laws, and property management, while addressing both parties' rights, obligations, and risk allocation in accordance with Hong Kong's common law system.

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What is a Hotel Management Contract Agreement?

The Hotel Management Contract Agreement is a crucial document used when a property owner wishes to engage a professional hotel management company to operate their hotel property in Hong Kong. This agreement is particularly relevant for new hotel developments, rebranding exercises, or changes in management companies. It comprehensively covers operational, financial, and legal aspects of the hotel management relationship, incorporating Hong Kong's specific regulatory requirements for hotel operations, employment, and property management. The document typically includes detailed provisions for pre-opening services, ongoing operations, performance standards, fee structures, and termination conditions, all within the framework of Hong Kong's common law system and local hospitality regulations. This type of agreement is essential for protecting both parties' interests while ensuring compliance with local laws and industry standards.

What sections should be included in a Hotel Management Contract Agreement?

1. Parties: Identification of the hotel owner and the hotel management company

2. Background: Recitals explaining the context, property details, and parties' intentions

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Appointment and Term: Scope of manager's appointment, term length, and renewal conditions

5. Pre-Opening Services: Manager's responsibilities before hotel opening, including recruitment and systems setup

6. Operating Standards: Brand standards, quality requirements, and performance metrics

7. Manager's Rights and Responsibilities: Detailed scope of management services, including staffing, marketing, and maintenance

8. Owner's Rights and Obligations: Owner's responsibilities, including funding, insurance, and property maintenance

9. Financial Arrangements: Management fees, expense arrangements, budgeting, and accounting procedures

10. Employee Matters: Staff employment terms, responsibilities, and training requirements

11. FF&E and Capital Expenditure: Furniture, fixtures, equipment management and capital improvement provisions

12. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions

13. Intellectual Property: Brand usage, trademarks, and system protection

14. Termination: Termination rights, procedures, and consequences

15. Post-Termination: Obligations and transitions after contract termination

16. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

17. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments

What sections are optional to include in a Hotel Management Contract Agreement?

1. Branded Residences: Include when the property includes residential units under hotel branding

2. Retail Space Management: Include for properties with significant retail components

3. Casino Operations: Include for properties with gaming facilities

4. Mixed-Use Provisions: Include for properties with multiple usage types

5. Technical Services: Include when manager provides additional technical advisory services

6. Area Restrictions: Include when there are territorial restrictions on manager's other operations

7. Environmental Compliance: Include detailed environmental provisions for green-certified properties

8. Force Majeure: Detailed force majeure provisions (may be standard or optional depending on jurisdiction)

What schedules should be included in a Hotel Management Contract Agreement?

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

2. Brand Standards: Detailed operating and quality standards required by the brand

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

4. Key Performance Indicators: Specific performance metrics and targets

5. Fee Structure: Detailed breakdown of all fees and calculations

6. Required Insurance: Specific insurance types and coverage amounts

7. Pre-Opening Budget: Detailed budget for pre-opening period

8. Operating Budget Template: Template for annual operating budgets

9. Competitive Set: List of competitive hotels for performance comparison

10. Reserved Owner Decisions: Decisions requiring owner approval

11. Manager Personnel: Key management positions and qualifications

12. Technical Services Scope: Detailed scope of technical services if applicable

Authors

Alex Denne

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

Jurisdiction

Hong Kong

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions
























































Clauses








































Relevant Industries

Hospitality

Real Estate

Tourism

Food and Beverage

Property Development

Facility Management

Hotel Management

Asset Management

Relevant Teams

Legal

Operations

Finance

Asset Management

Development

Risk and Compliance

Commercial

Property Management

Human Resources

Strategy

Investment

Relevant Roles

Chief Executive Officer

Chief Operating Officer

General Counsel

Hotel General Manager

Director of Operations

Asset Manager

Development Director

Chief Financial Officer

Head of Legal

Commercial Director

Property Manager

Operations Manager

Contract Manager

Risk Manager

Compliance Officer

Hotel Owner

Real Estate Director

Investment Manager

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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