The Negotiation and Administration of Hotel Management Contracts

© 2009, fourth revised and expanded edition

ISBN-13: 978-0-558-07968-0
ISBN-10: 0-558-07968-7
By James J. Eyster and Jan A. deRoos

Jim Eyster is the HVS International Professor Emeritus of Hotel Finance and Real Estate and Jan deRoos is the HVS International Professor of Hotel Finance and Real Estate at Cornell University’s School of Hotel Administration.  Collectively, they have over 50 years experience as educators, researchers, and consultants to the hospitality industry.  This work combines the impartial treatment of the topic established in the first three editions with two years of just-completed extensive research to provide a contemporary analysis of management contracts.

Worldwide, well over 6,000 hotels are operated under management contracts.  These hotels have separated the ownership from the control of the day-to-day operations through the management contract.  As the number of hotels continues to grow, so does the number of management contracts.  In this fourth edition, the authors provide:

•    An analysis of the components of owner and operator bargaining power.
•    An in-depth treatment of the provisions of concern to owners and operators including numerous tables detailing the state of management contracts executed since 2000.
•    An examination of the major contract agreement forms and their differences in North America, Europe, the Middle East, and Asia.
•    A practical guide for handling concerns during the contract’s term and the factors contributing to owner and operator concerns.
•    A pragmatic approach for preparing for successful negotiations including a rigorous, detailed approach to the financial evaluation of proposed projects.
•    A look at future trends that will affect lodging industry and management contracts.

This new edition includes data from a review of over 400 contracts written since 2000 and contains the latest thinking on the topics of agency, contract design, operator financial contributions, term of the contract, basic and incentive fees, system reimbursable expenses, termination and performance clauses, personnel issues, budgeting and spending limitations, non-compete provisions, and dispute settlement mechanisms.  The authors provide their insights and draw on their experience in a wide range of situations and through many business cycles to provide practical and cogent advice.
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Price US$120