Hotel Lease Agreements vs. Hotel Management Agreements

Introduction

In the last decades there have been great changes in the Israeli hotels industry. In terms of demand, we are witnessing a huge growth in incoming tourism¹ and an uprising in the industry revenue. Due to the growth in the hotel industry, there is increasing competitiveness between the operators in the field, highly professional level of the players in the market, and an expanding variety of types of lodgings available for the public such as rich technology "business" hotels, "spa" hotels, international franchise brands to attract specific clients, Airbnb, "capsule" hotels and more.

Despite those changes, when we examine the legal-contractual aspect in the engagement between hotel owners and hotel operators, it is surprising to see that even though the tourism industry is blossoming and the hotel industry is rapidly changing, the legal infrastructure in Israel has remained almost the same.