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Operating Management Agreement
"I need an Operating Management Agreement for a 200-room hotel in Jakarta, where an international hotel chain will take over management from March 2025, with particular emphasis on staff transition and maintaining local service standards."
1. Parties: Identification of the property owner/company and the management operator
2. Background: Context of the agreement, property details, and purpose of the management arrangement
3. Definitions: Key terms used throughout the agreement including Property, Services, Management Fee, etc.
4. Appointment and Term: Formal appointment of operator and duration of agreement
5. Scope of Services: Detailed description of management services to be provided
6. Operator's Rights and Obligations: Specific authorities and responsibilities of the management operator
7. Owner's Rights and Obligations: Responsibilities and obligations of the property owner
8. Staff and Employment: Management of employees, hiring policies, and compliance with labor laws
9. Financial Management: Budget management, accounting procedures, and financial reporting requirements
10. Fees and Payment Terms: Management fees, payment structure, and payment terms
11. Reporting and Performance Standards: Required reports, KPIs, and performance metrics
12. Insurance and Liability: Insurance requirements and allocation of risks
13. Termination: Grounds for termination and termination procedures
14. Post-Termination Obligations: Handover requirements and post-termination responsibilities
15. Governing Law and Dispute Resolution: Choice of law and dispute resolution mechanisms
16. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
1. Intellectual Property Rights: Required when management services involve use of branded systems or proprietary methods
2. Non-Competition: Include when restricting operator from managing competing properties
3. Force Majeure: Detailed force majeure provisions for high-risk areas or industries
4. Environmental Compliance: Required for properties with significant environmental impact
5. Asset Management: Include for agreements involving capital improvements or asset maintenance
6. Marketing and Branding: Required when operator is responsible for marketing and brand management
7. Data Protection and Privacy: Include when handling sensitive customer or business data
8. Emergency Procedures: Required for high-risk operations or public facilities
1. Property Description: Detailed description of the property and facilities under management
2. Scope of Services: Detailed breakdown of management services and responsibilities
3. Fee Structure: Detailed calculation of management fees and incentive structures
4. Key Performance Indicators: Specific performance metrics and targets
5. Required Insurance: List of required insurance policies and coverage amounts
6. Employee Positions and Qualifications: Key positions and required qualifications
7. Operating Standards: Detailed operating procedures and standards
8. Form of Reports: Templates for required operational and financial reports
9. Handover Checklist: List of items and procedures for termination transition
Authors
Applicable Laws
Base Fee
Budget
Business Day
Commencement Date
Confidential Information
Contract Year
Effective Date
Emergency
Employee Costs
Expiry Date
FF&E
Force Majeure Event
Governing Law
Gross Operating Profit
Gross Revenue
Incentive Fee
Initial Term
Intellectual Property Rights
Key Performance Indicators
Management Fees
Management Services
Operating Account
Operating Expenses
Operating Standards
Operating Supplies
Operator
Owner
Performance Test
Permits
Personnel
Property
Renewal Term
Reports
Reserve Account
Services
Service Standards
Term
Territory
Working Capital
Term and Renewal
Scope of Services
Authority and Limitations
Performance Standards
Compliance
Staffing and Employment
Training
Operating Budget
Financial Management
Bank Accounts
Management Fees
Reimbursable Expenses
Reporting Requirements
Audit Rights
Insurance
Indemnification
Intellectual Property
Confidentiality
Non-Competition
Force Majeure
Termination
Post-Termination Obligations
Assignment
Notices
Governing Law
Dispute Resolution
Language Requirements
Amendment
Severability
Entire Agreement
Representations and Warranties
Health and Safety
Environmental Compliance
Emergency Procedures
Property Maintenance
Marketing and Promotion
Purchasing and Procurement
Record Keeping
Data Protection
Anti-Corruption
Hospitality
Real Estate
Healthcare
Manufacturing
Retail
Infrastructure
Education
Entertainment
Facilities Management
Industrial Operations
Legal
Operations
Finance
Human Resources
Compliance
Risk Management
Facilities Management
Asset Management
Business Development
Property Management
Chief Executive Officer
Chief Operating Officer
General Manager
Operations Director
Legal Counsel
Contract Manager
Facility Manager
Property Manager
Asset Manager
Human Resources Director
Finance Director
Risk Manager
Compliance Officer
Business Development Manager
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