It should be noted that the relationship between the owner and the operator is increasingly governed not only by the traditional administrative agreement, but also by parallel agreements such as licensing, licensing or service agreements. In order to fully assess the value of payments due to the operator, the royalty requirements of these parallel contracts should be assessed. Operators operating the hotel under their own brand will likely require the right to spend to preserve the brand appeal related to their goodwill and common operating standards. It is important to ensure that this does not become an “empty cheque” – if the group of operators decides to introduce a swimming pool in all branded hotels, the owner should not be forced to accept the construction of a new pool complex in his hotel. The landlord must be careful not to inadvertently create a lease under which the operator enjoys the rights of a commercial tenant. This risk is due to the fact that the administrative agreement, if poorly drafted, may have the two fundamental characteristics necessary for the award of a lease: the exclusive ownership of the premises for a specified period of time. The owner intends to negotiate the terms of the agreement and strike a certain balance by granting rights and remediation to the owner if the hotel business presents financial problems. The flexibility to balance a hotel management agreement may depend on the hotel`s appeal to the operator – if it is a prestigious hotel, in a good position, the operator will negotiate instead. The operator`s remuneration for the provision of services under the hotel management contract is generally intended as a fee which is in fact a cost of operating the hotel business. This fee should encourage the operator to provide good services, but the owner`s performance is reduced by deducting the operator`s royalty before the profits are distributed. Normally, this information is not only stored in the sales contract, it is also transferred to three important operating documents.
These are group groups (for groups and space blocks), banquet or BEOs orders (for events and meetings) and credit card authorization forms (if you don`t have an online payment system or credit card). We look at these operating documents in relation to authentic sales contracts, but we are often used by the hotel`s sales team. As part of this manual, the types of business hotel sales teams that usually serve as targets are explained. We also deal with the sales and booking process as well as the main hotel contracts and documents used. Finally, we present some examples for each of the six main types of documents and a brief explanation of when and why each is used. The owner should have the right to terminate the contract if the operator is defaulted without any liability. It may reserve the right to terminate the contract without cause, but must expect the operator to demand payment of a termination fee corresponding to its expected performance over the duration of the contract that has not expired. This document is used by the hotel`s sales teams to track room obligations for corporate accounts.
It is also called the NRL agreement, which means “Local Negotiated Rate.” It is important to note that many markets use this document to describe the details of the negotiated rate, but many hotels choose not to impose it by law or have difficulty doing so. It varies depending on the market, brand and ownership. Individuals who own intellectual property rights to the hotel`s processes, computer systems and trademark documents should be dealt with in the management agreement. If the operator reserves these rights, in the event of termination or expiry of the contract, there should be appropriate protection from the owner with respect to business continuity.