The Hotel Management Contract Agreement is a crucial document used when a property owner wishes to engage a professional hotel management company to operate their hotel property in Indonesia. This agreement is essential for defining the relationship between the owner and operator, establishing clear operational parameters, and ensuring compliance with Indonesian regulations including Law No. 10 of 2009 on Tourism and related hospitality regulations. The document typically covers areas such as management fees, operational standards, staffing, budgeting, and maintenance responsibilities, while incorporating specific requirements for hotel operations under Indonesian law. It's particularly important for new hotel developments, rebranding exercises, or when transitioning to professional management, and must balance the interests of both the property owner and the management company while ensuring adherence to local legal requirements and international hospitality standards.
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1. Parties: Identification of the Hotel Owner and the Hotel Management Company
2. Background: Context of the agreement, property details, and purpose of the management arrangement
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Appointment and Term: Scope of manager's appointment, duration, and renewal terms
5. Management Company's Rights and Obligations: Detailed responsibilities and authority of the management company
6. Owner's Rights and Obligations: Owner's responsibilities, including funding obligations and property maintenance
7. Staff and Employment: Employment arrangements, key personnel, and staff policies
8. Operating Standards: Brand standards, quality requirements, and performance metrics
9. Budgets and Financial Management: Budget preparation, approval process, and financial reporting requirements
10. Fees and Payments: Management fees, structure, calculation, and payment terms
11. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions
12. Termination: Termination events, notice requirements, and consequences
13. Post-Termination: Transition obligations and arrangements after termination
14. Intellectual Property: Usage of brands, trademarks, and proprietary systems
15. Confidentiality: Protection of confidential information and trade secrets
16. Dispute Resolution: Process for resolving disputes under Indonesian law
17. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Pre-Opening Services: Required for new hotels, covering pre-opening obligations and fees
2. Technical Services: For properties requiring renovation or significant technical support
3. FF&E and Capital Expenditure: Detailed provisions for furniture, fixtures, equipment management if required
4. Force Majeure: Extended provisions for force majeure events in disaster-prone areas
5. International Arbitration: For agreements with international management companies
6. Currency and Exchange Rate: For agreements involving international payments
7. Environmental Compliance: Extended environmental provisions for eco-sensitive locations
8. Mixed-Use Property: Additional provisions for hotels within mixed-use developments
9. Gaming/Casino Operations: Special provisions if the hotel includes gaming facilities
1. Property Details: Detailed description of the hotel property and facilities
2. Management Fees: Detailed fee structure including base fees, incentive fees, and calculations
3. Key Performance Indicators: Specific performance metrics and targets
4. Brand Standards: Detailed brand standards and operating requirements
5. FF&E Requirements: Specifications for furniture, fixtures, and equipment
6. Required Insurance: Detailed insurance requirements and coverage limits
7. Initial Budget: First year operating budget and projections
8. Key Personnel: Positions and qualifications of key management staff
9. Pre-Opening Budget: Budget and timeline for pre-opening activities if applicable
10. Centralized Services: List of centralized services provided by the management company
11. Owner's Reserved Rights: Specific decisions requiring owner approval
12. Property Improvement Plan: Required renovations or improvements to meet brand standards
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