The Hotel Management Contract is essential for property owners seeking professional management of their hotel assets in Singapore. This document defines the delegation of operational control to a management company while preserving the owner's interests. It includes detailed provisions for operational standards, financial arrangements, staffing, and brand compliance, while ensuring adherence to Singapore's regulatory framework. The contract typically spans 10-20 years and is crucial for establishing clear governance structures, performance metrics, and risk allocation between parties.
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1. Parties: Identification of the Hotel Owner and Management Company
2. Background: Context of the agreement, including property details and purpose
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Scope of management appointment and duration
5. Management Company's Rights and Obligations: Core responsibilities and authority of the management company
6. Owner's Rights and Obligations: Responsibilities and obligations of the property owner
7. Financial Provisions: Management fees, operating accounts, budgets, and financial reporting
8. Staff and Employment: Employment terms, responsibilities, and management structure
9. Brand Standards: Operating standards and brand requirements
10. Termination: Grounds for termination and consequences
1. Pre-Opening Services: Required for new hotels or renovations - includes specific provisions for hotel setup and launch
2. FF&E Reserve: Provisions for furniture, fixtures, and equipment replacement fund management
3. Non-Compete Provisions: Restrictions on competing properties within specified geographic area
4. Force Majeure: Provisions dealing with extraordinary events and circumstances beyond parties' control
1. Property Description: Detailed description of the hotel property and facilities
2. Management Fee Structure: Detailed breakdown of base and incentive fees
3. Operating Standards: Detailed brand and operating requirements
4. Key Performance Indicators: Performance metrics and targets
5. Initial Budget: First-year operating budget
6. FF&E Schedule: Inventory and replacement schedule for furniture, fixtures, and equipment
7. Employee Handbook: Staff policies and procedures
8. Insurance Requirements: Required insurance coverage details
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