|What is the usual standard imposed on an
operator in respect of the operation of the hotel?
||The standard is to manage the hotel in line with the legal
regulations and the standard agreed between the parties.
|What performance measures are commonly
used in your jurisdiction?
||It depends on the different management companies
rather than on the market standard, but the most
common performance measures are occupancy rate,
GOP and RevPAR.
|Is an operator or owner guarantee common in
|What is the usual position in respect of
employees? With whom does the liability for
the employees sit?
||In most situations it sits with the operator.
|Is it usual to have a non-compete clause, e.g.
that no other property with that brand can
open within a certain radius?
||It is typical for hotels of the same brand that are
owned by the operator. It is rather rare when it comes
to any other hotels.
|Who is responsible for insurance?
|Does the HMA give rights in real estate in your
|Does the HMA need to be recorded against the
property, if this is possible in your jurisdiction?
|Where financing is taken is it standard to obtain
a Non-Disturbance Agreement (“NDA”) as part
of a management or lease agreement?
|What other agreements usually sit alongside an
HMA in your jurisdiction?