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Hotel Partnership Agreement for Indonesia

Hotel Partnership Agreement Template for Indonesia

This document establishes a comprehensive partnership agreement between hotel owners and operators under Indonesian law, governing the management and operation of hotel properties within Indonesia's jurisdiction. It addresses key aspects including operational standards, brand requirements, financial arrangements, employment matters, and regulatory compliance in accordance with Indonesian hospitality and tourism regulations. The agreement incorporates specific provisions required by Indonesian law while maintaining international hospitality industry standards, ensuring proper allocation of rights, responsibilities, and risk between the parties involved in hotel operations.

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Hotel Partnership Agreement

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What is a Hotel Partnership Agreement?

The Hotel Partnership Agreement serves as the foundational document governing the relationship between hotel property owners and professional hotel operators in Indonesia. This agreement is essential when property owners seek to partner with experienced hotel management companies to operate their properties under established brand standards and professional management practices. The document comprehensively covers operational, financial, and legal aspects of the hotel management relationship, ensuring compliance with Indonesian hospitality laws, tourism regulations, and business partnership requirements. It includes detailed provisions for brand standards, operational procedures, revenue sharing, employee management, and property maintenance, while addressing specific Indonesian regulatory requirements such as local ownership rules, tourism licenses, and employment regulations. The agreement is particularly relevant for new hotel developments, rebranding exercises, or changes in hotel management, providing a clear framework for successful hotel operations while protecting the interests of all parties involved.

What sections should be included in a Hotel Partnership Agreement?

1. Parties: Identification of all contracting parties including hotel owner, operator, and any other relevant stakeholders

2. Background: Context of the agreement, including property details and parties' intentions

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

4. Term and Renewal: Duration of the agreement and conditions for renewal

5. Appointment and Scope: Formal appointment of operator and scope of services

6. Brand Standards: Requirements for maintaining brand standards and quality levels

7. Operations and Management: Day-to-day operational responsibilities and management structure

8. Staff and Employment: Employment arrangements, responsibilities, and compliance with Indonesian labor laws

9. Financial Terms: Fee structure, payment terms, and financial obligations of all parties

10. Budgets and Financial Planning: Process for budget approval and financial planning requirements

11. Maintenance and Capital Expenditure: Responsibilities for property maintenance and capital improvements

12. Insurance and Liability: Required insurance coverage and allocation of liabilities

13. Intellectual Property: Usage rights and protection of brands, trademarks, and other IP

14. Representations and Warranties: Standard representations and warranties from all parties

15. Termination: Grounds for termination and consequences

16. Force Majeure: Provisions for unforeseen circumstances and their handling

17. Dispute Resolution: Process for resolving disputes under Indonesian law

18. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

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

What sections are optional to include in a Hotel Partnership Agreement?

1. Pre-Opening Services: Used when the hotel is not yet operational, detailing responsibilities and fees for the pre-opening phase

2. Technical Services: Include when operator provides technical assistance for hotel development or renovation

3. Gaming Operations: Required if the hotel includes casino or gaming facilities

4. Mixed-Use Provisions: Include for properties with residential or retail components

5. FF&E Management: Detailed provisions for furniture, fixtures, and equipment if separately managed

6. Environmental Compliance: Enhanced environmental provisions for eco-certified or green hotels

7. Cultural Heritage Preservation: Required for properties in heritage buildings or cultural sites

8. Centralized Services: Include when operator provides centralized services across multiple properties

9. Third-Party Operators: Used when certain facilities (e.g., spa, restaurants) are operated by third parties

What schedules should be included in a Hotel Partnership Agreement?

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

2. Services Schedule: Comprehensive list of services to be provided by the operator

3. Fee Schedule: Detailed breakdown of all fees, including base fees, incentive fees, and other charges

4. Performance Tests: Metrics and standards for evaluating operator performance

5. Brand Standards Manual: Detailed requirements for maintaining brand standards

6. FF&E Standards: Specifications for furniture, fixtures, and equipment

7. Employee Handbook: Staff policies and procedures compliant with Indonesian labor law

8. Operating Budget Template: Format and requirements for annual operating budgets

9. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

10. Emergency Procedures: Protocols for handling emergencies and crisis situations

11. Local Compliance Requirements: Specific local permits and compliance requirements

12. Service Level Agreements: Detailed performance metrics for various operational aspects

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

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



































































Clauses












































Relevant Industries

Hospitality

Real Estate

Tourism

Property Development

Hotel Management

Food and Beverage

Leisure and Entertainment

Property Investment

Facilities Management

Asset Management

Relevant Teams

Legal

Operations

Real Estate

Development

Asset Management

Finance

Human Resources

Compliance

Business Development

Brand Management

Technical Services

Property Management

Investment

Risk Management

Relevant Roles

Hotel General Manager

Chief Executive Officer

Chief Operating Officer

Director of Operations

Legal Counsel

Property Development Manager

Asset Manager

Investment Director

Head of Real Estate

Director of Acquisitions

Hotel Operations Director

Compliance Officer

Regional Director

Business Development Manager

Finance Director

Human Resources Director

Technical Services Director

Brand 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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