5 Tips On How To Avoid Hotel Management Disputes

The hospitality industry is an economic sector that is in a constant state of flux. To stay competitive both the hotel owner and operator must be willing to respond to changes in the market before change is forced upon them. Hotel operators, for example, have had to adjust to the rapid expansion of online reservation platforms and alternative accommodation service providers, changing requirements of travellers and guests (particularly millennials), and general industry disruptors. The competitive nature of the industry, coupled with ever moving trends and products can provide fertile ground for disputes to develop.

Whist the initial design and development of a hotel will likely be subject to a Technical Services Agreement ('TSA'), a hotel owner's relationship with the operator is closest during operation of the hotel, which is governed by a hotel management agreement ('HMA'). The HMA typically has a duration of 10 - 20 years, thus, ensuring that the HMA is clear and