Most hotels are managed by brands or independent operators - not their owners. The owner is generally responsible for providing funding for the operation of the hotel when necessary while the operator manages the hotel's day-to-day operation. The agreement between the two parties is often structured with the operator as a contractor using a contract that specifies duties, obligations, and liabilities.

This article, based on findings from an analysis of over 500 management contracts collected by HVS as well as a review of publications on the topic, provides an overview of typical terms for a hotel management contract and examines historical trends observed in the industry. The article is not meant to provide trend information on what is happening in any particular hotel management contracts currently being negotiated but analyzes aggregated data for contracts written during the past three decates in the United States.

About HVS

HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.

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