The Ten Page Hotel Management Agreement - Feasible or Folly?
Long time readers of this newsletter will be aware that we tend to pick a topic and then discuss ten issues relevant to it. Why ten issues? No particular reason. It has just evolved that way.
In this newsletter we are going to use the concept of ten in a somewhat different way.
In our experience, irrespective of wherever in the world we are negotiating hotel management agreements, it is common practice that it comprises substantially more than ten pages and numerous annexures. Everybody agrees that management agreements should be shorter but nobody yet seems to have become sufficiently comfortable with the concept to actually put one into the market or seriously discuss it as a possibility.
So let's assume that we have been instructed by an innovative client to prepare a hotel management agreement that must not be more than ten pages (normal print size of course !), excluding essential annexures. The question then becomes - can it be done and if so what would it need to contain?
We consider that it can be done and set out below our thoughts on suggested contents. Views of course will differ on what we have indicated to be necessary inclusions as well as omissions which currently are contained in the vast array of standard templates currently in circulation. We welcome that debate.