Hotel Management Contract Template for Philippines

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Key Requirements PROMPT example:

Hotel Management Contract

"I need a Hotel Management Contract under Philippine law for a new 5-star luxury resort in Cebu, planned to open in March 2025, where the management company will also provide pre-opening and technical services, with a 20-year initial term."

Document background

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 the Philippines. This agreement is essential for defining the relationship between the owner and operator, establishing clear operational parameters, and ensuring compliance with Philippine regulatory requirements. It covers comprehensive aspects including management authority, operational standards, financial arrangements, staffing, brand requirements, and risk allocation. The document must comply with various Philippine laws including the Tourism Act of 2009, Civil Code, Labor Code, and local government regulations. It's particularly relevant for new hotel developments, rebranding exercises, or when transitioning between management companies in the Philippine market.

Suggested Sections

1. Parties: Identification of the Hotel Owner and the Hotel Management Company

2. Background: Context of the agreement, description of the property, and parties' intentions

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

4. Appointment and Term: Scope of manager's appointment, term length, and renewal provisions

5. Manager's Rights and Responsibilities: Detailed outline of the management company's authority and obligations

6. Owner's Rights and Obligations: Owner's roles, responsibilities, and retained rights

7. Personnel and Employment: Staffing arrangements, employment policies, and key personnel requirements

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 methods, and payment terms

11. FF&E and Capital Expenditure: Provisions for furniture, fixtures, equipment, and capital improvements

12. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions

13. Termination: Termination rights, process, and consequences

14. Post-Termination: Obligations and transitions after contract termination

15. Representations and Warranties: Standard representations and warranties from both parties

16. Governing Law and Dispute Resolution: Choice of Philippine law and dispute resolution mechanisms

17. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments

Optional Sections

1. Pre-Opening Services: Used when the hotel is not yet operational, detailing pre-opening obligations and fees

2. Technical Services: Include when the manager provides design and construction consultation services

3. Intellectual Property: Detailed IP provisions when the management company's brand is significant

4. Force Majeure: Extended force majeure provisions for regions prone to natural disasters

5. Non-Compete: Restrictions on manager operating competing properties in the area

6. Environmental Compliance: Additional environmental obligations for properties in protected areas

7. Casino/Gaming Operations: Include for properties with gaming facilities

8. Mixed-Use Property Provisions: Used when hotel is part of a larger mixed-use development

9. Residential Component: Include when hotel includes residential units or serviced apartments

Suggested Schedules

1. Property Description: Detailed description of the hotel property and facilities

2. Key Performance Indicators: Specific performance metrics and targets

3. Base Fee and Incentive Fee Calculations: Detailed fee structures and calculation methods

4. Brand Standards: Specific requirements for maintaining brand standards

5. Required Insurance: Detailed insurance requirements and coverage limits

6. FF&E Requirements: Specifications for furniture, fixtures, and equipment

7. Key Personnel: Positions designated as key personnel and their qualifications

8. Operating Accounts: Structure and management of various operating accounts

9. Initial Budget: First year's operating budget

10. Competitive Set: List of competing hotels for performance comparison

11. Owner's Reserved Rights: Specific decisions requiring owner approval

12. Form of Owner's Certificate: Standard form for periodic owner certifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Hospitality

Real Estate

Tourism

Food & Beverage

Entertainment

Property Development

Facilities Management

Professional Services

Construction

Relevant Teams

Legal

Operations

Finance

Human Resources

Commercial

Development

Compliance

Asset Management

Technical Services

Property Management

Investment

Risk Management

Relevant Roles

General Manager

Hotel Owner

Chief Executive Officer

Chief Operating Officer

Development Director

Legal Counsel

Operations Manager

Financial Controller

Human Resources Director

Property Manager

Asset Manager

Investment Manager

Compliance Officer

Technical Services Director

Commercial Director

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Authors

Alex Denne

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