Legal tip 1143. Contract for Hotel Management in Spain
Wednesday, May 7, 2014 @ 12:46 PM
A Hotel management contract is an agreement between two parties:
(1) usually a hotel chain that brings experience in the sector and, which manages the hotel business and receives a fee for such management and
(2) the owner of the property, which is the owner of the business and receives the results of the management, taking the business risks.
Case Law understands that the hotel management contract requires close cooperation between the two parties described below in order to achieve the common goal of getting more customers and profitability for the common benefit of both the manager and the owner.
It is remarkable that this is a management contract, but at the same time, it requires cooperation between the parties. Administration and finances are generally carried out by the owner while marketing is developer by the manager.
This particular way of working the business makes necessary that parties leave pending some further negotiation between the parties and as a consequence it is a source of conflicts and disagreements: budget , staff structure , staff training , advertising campaigns , advertising materials , inspection of markets , market opening , attendance to conferences , conventions and fairs.
Hotel "Fuerte Conil", Conil, Cádiz, Costa de la Luz, South western Spain