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Has Eden Roc Really Impacted Hotel Management Agreements?

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by David M. Samuels
Law360
March 3, 2015

David Samuels' article, "Has Eden Roc Really Impacted Hotel Management Agreements?" was published in Law360  and featured on LexisNexis' Legal Newsroom: Contracts and Commercial Law on March 3, 2015.

From the article...

"Twenty years ago, nearly all full service hotels were owned and operated by global brands.  In the intervening years, virtually all those brands have moved toward an “asset-light” strategy, divesting themselves from the burdens of hotel ownership and focusing instead on hotel management and franchising.[1]  This evolution in the industry’s structure increased the importance of Hotel Management Agreements (“HMAs”) as more and more new hotel owners have hired these third party managers to operate and manage their assets.  Amid this shift in dynamics, issues related to the owner/operator relationship and under what circumstances an owner might be able to terminate an operator frequently arise. The relationship between the owner and operator is governed by the HMA, a document which has evolved tremendously over the last twenty years.  A well-crafted HMA can run over 100 pages and will seek to address all potential issues that might arise concerning the operation and ownership of the hotel. "

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