Renegotiating hotel management agreements

Article Abstract:

The depressed hotel market gives hotel lenders and owners the opportunity to renegotiate hotel management agreements. Because of prevailing economic conditions, hotel owners are facing greater financial pressure while lenders are getting to be hotel owners on foreclosures. This situation allows for a greater chance of successfully negotiating for lower front-end fixed fees assessed on gross revenues and gaining incentives that are centered on the bottom line. Issues pertinent to the process of negotiating management agreements entered into by hotel lenders and owners are discussed.

Analysis, Management, Evaluation, Negotiation, Negotiations, Hotel and motel management, Management contracts

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Disasters can create opportunities for troubled hotels

Article Abstract:

The context of a disaster may bring new options in dealing with hotels in financial difficulties, with, for example, insurance proceeds providing opportunities. If trade has already been halted, the normal reluctance of lenders to take over a hotel in difficulties is less appropriate. Contracts, such as franchises, can also be renegotiated in this context. Successful management of disasters means ideally, preparations should be in place prior to the event.

Fire, marine, and casualty insurance, Finance, Insurance, Risk factors

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Interest in luxury hotels is coming back

Article Abstract:

The sudden rise in interest in luxury hotels is predicted to boost investments in the hospitality industry in 1995. Market research firm PaineWebber Inc. predicts that occupancy rates will reach 74% in 1995, from 71.4% in 1994, while average daily rate will increase by 4.5%. Market experts say the increase was fueled by a boom in construction and the increase in demand for lodging facilities as a result of economic recovery.

Hotels & Motels, Hotels (except Casino Hotels) and Motels, Forecasts and trends

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