Hotel management and operations options: Intellectual capital versus financial capital

Abstract

This paper discusses the inherent conflict of interest between owners and operators under hotel management agreements and describes the most important business and legal issues that have to be observed from an owner's and an operator's perspective, respectively, when negotiating a hotel management agreement. At the same time, the paper gives an overview of the most significant contractual issues that should be covered in all hotel management agreements. The author concludes that only a balanced contract will allow both parties to achieve their business goals over time, and that the best approach to a balanced contractual basis is a mutual understanding by the parties of each other's main concerns.[PUBLICATION ABSTRACT]