If you`re involved in the hospitality industry, it`s likely that you`ll need to sign a hotel operating agreement at some point in your career. This document outlines the terms and conditions under which a hotel will be managed and operated. As such, it`s essential to ensure that it`s thorough, detailed, and legally binding. To help you get started, we`ve put together a sample hotel operating agreement.
Overview
This hotel operating agreement is entered into by [HOTEL OWNER], the owner of [HOTEL NAME], and [HOTEL OPERATOR], the operator of the hotel. The terms of this agreement are binding for a period of [TERM] years, commencing on [START DATE]. The operator agrees to manage, operate, and maintain the hotel in accordance with the terms and conditions outlined in this agreement.
Management and Operation
The operator will be responsible for all aspects of the hotel`s management and operation, including but not limited to:
– Staffing
– Sales and marketing
– Guest services
– Maintenance and repairs
– Accounting and financial reporting
– Compliance with all applicable laws and regulations
The operator will use reasonable efforts to maximize revenue generated by the hotel, while maintaining high standards of service and quality.
Financial Terms
The hotel`s revenue will be shared between the owner and operator according to the following formula:
[INSERT FORMULA HERE]
The operator will be responsible for all operating expenses incurred in connection with the hotel`s management and operation. The owner will be responsible for all capital expenditures related to the hotel`s maintenance and improvement.
Term and Termination
This agreement will be binding for a period of [TERM] years, commencing on [START DATE]. After this period, the agreement may be renewed by mutual agreement of the parties.
Either party may terminate this agreement upon [NOTICE PERIOD] days` written notice to the other party, for any reason or no reason.
Miscellaneous
This agreement represents the entire agreement between the parties, and supersedes all prior discussions and negotiations. This agreement may not be amended or modified except in writing executed by both parties.
This hotel operating agreement is governed by the laws of [STATE], and any dispute arising under this agreement will be resolved in accordance with the dispute resolution provisions set forth herein.
Conclusion
A hotel operating agreement is a critical document that`s essential to the proper management and operation of a hotel. It`s important to ensure that it`s detailed, thorough, and legally binding. This sample hotel operating agreement serves as a starting point, but it`s important to tailor the terms and conditions to your specific needs and circumstances. With a well-drafted hotel operating agreement in place, you`ll be well-equipped to maximize the revenue generated by your hotel while maintaining the highest standards of service and quality.