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The Hotel Management Contract is a crucial document used when a property owner wishes to engage a professional hotel management company to operate their hotel property in Germany. This agreement is essential for defining the relationship between the owner and operator, establishing clear lines of authority, responsibilities, and financial arrangements. The contract must comply with German legal requirements, including the Civil Code (BGB), Commercial Code (HGB), and specific hospitality regulations. It typically covers all aspects of hotel operations, from day-to-day management to long-term strategic planning, including staff employment, brand standards, financial reporting, and performance metrics. This type of agreement is particularly relevant for property owners looking to benefit from professional hotel management expertise while retaining ownership of the asset, and for management companies expanding their operational portfolio in the German market.

1. Parties: Identification of the hotel owner and the management company

2. Background: Context of the agreement, property description, and purpose of the management arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Appointment and Term: Scope of operator's appointment and duration of the agreement

5. Management Company's Rights and Obligations: Detailed responsibilities and authority of the management company

6. Owner's Rights and Obligations: Responsibilities and obligations of the property owner

7. Staff and Employment: Employment arrangements, responsibilities for staff, and labor relations

8. Operating Standards: Required service levels, brand standards, and quality requirements

9. Budgets and Financial Management: Financial planning, reporting requirements, and budget approval processes

10. Fees and Payment Terms: Management fees, structure, calculation methods, and payment terms

11. Insurance and Indemnification: Required insurance coverage and indemnification obligations

12. Maintenance and FF&E: Property maintenance obligations and furniture, fixtures & equipment provisions

13. Intellectual Property: Usage of trademarks, brands, and other intellectual property

14. Termination: Termination rights, procedures, and consequences

15. Force Majeure: Provisions for unforeseen circumstances and their impact

16. Dispute Resolution: Procedures for resolving disputes between parties

17. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

18. General Provisions: Miscellaneous legal provisions including notices, amendments, and assignment