Hotel Management Contract

Hotel Management Contract Template for Singapore

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Key Requirements PROMPT example:

"Need a Hotel Management Contract for a new 200-room luxury hotel in Singapore's Marina Bay area, where our company (ABC Properties) will engage Hilton as the management company, with a planned opening date of March 2025 and an initial term of 15 years."

What is a Hotel Management Contract?

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.

What sections should be included in a Hotel Management Contract?

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

What sections are optional to include in a Hotel Management Contract?

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

What schedules should be included in a Hotel Management Contract?

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 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

Relevant Teams

Operations
Legal
Finance
Human Resources
Development
Asset Management

Relevant Roles

Hotel General Manager
Director of Operations
Chief Financial Officer
Legal Counsel
Asset Manager
Development Director

Industries

Hotels Act (Chapter 127): Primary legislation governing hotel operations, licensing requirements, and standards in Singapore

Hotels Licensing Regulations: Detailed regulations regarding hotel licensing, compliance requirements, and operational standards

Building Control Act: Regulates building construction, maintenance, and safety standards for hotel properties

Fire Safety Act: Mandates fire safety requirements and emergency procedures for hotel buildings

Environmental Public Health Act: Governs sanitation, hygiene standards, and environmental health requirements in hotels

Employment Act: Main labor law governing employment terms, conditions, and employee rights in Singapore

Work Injury Compensation Act: Regulates compensation for work-related injuries and occupational diseases

Personal Data Protection Act (PDPA): Governs collection, use, and disclosure of personal data of hotel guests and employees

Companies Act: Regulates business operations, corporate governance, and company administration

Contract Law: Based on English common law principles, governs formation and enforcement of contracts

Competition Act: Promotes fair competition and prevents anti-competitive practices in the hotel industry

Consumer Protection (Fair Trading) Act: Protects consumers against unfair practices and ensures fair trading standards

Workplace Safety and Health Act: Ensures safety, health, and welfare of persons at work in the hotel premises

Singapore Tourism Board Act: Regulates tourism industry and establishes standards for tourist-related facilities

Tourism Industry Act: Provides framework for tourism industry development and regulation

Employment of Foreign Manpower Act: Regulates employment of foreign workers in Singapore's hotel industry

Central Provident Fund Act: Mandates contributions to employees' retirement, healthcare, and housing savings

Skills Development Levy Act: Requires employers to contribute to workers' skills development and training

Sale of Food Act: Regulates food safety and standards in hotel F&B operations

Food Regulations: Detailed requirements for food handling, preparation, and service in hotels

Liquor Control Act: Governs sale and consumption of alcoholic beverages in hotel premises

Planning Act: Controls land use and development of hotel properties

Land Titles Act: Regulates property ownership and registration of hotel real estate

Property Tax Act: Governs taxation of hotel properties and related assets

COVID-19 (Temporary Measures) Act: Temporary regulations affecting hotel operations during pandemic (if applicable)

Smoking (Prohibition in Certain Places) Act: Regulates smoking areas and restrictions within hotel premises

Public Entertainment Act: Governs entertainment activities and licensing in hotel venues

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Let's create your Hotel Management Contract

What is a Hotel Management Contract?

What sections should be included in a Hotel Management Contract?

What sections are optional to include in a Hotel Management Contract?

What schedules should be included in a Hotel Management Contract?

Authors

Alex Denne

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