Antimonopoly Clearance Under Hotel Management Agreement: Guide For Hotel Managers

LEGISLATIVE BACKGROUND

Under the On Protection of Economic Competition Act of Ukraine of 11 June 2001 obtaining into management, lease, concession or obtaining otherwise the rights to use assets in the form of a real property complex is considered "economic concentration", which requires prior antimonopoly clearance when certain financial criteria are met by participants thereto.

The management of the hotel will require prior antimonopoly clearance as far as the manager obtains control over the hotel as a real property complex and manages the hotel at his/her sale discretion. It is not so long ago that the Ukrainian hospitality market experienced professional management by international hotel managing companies. Due to the robust growth of the Ukrainian hospitality market in the last few years the practice of obtaining antimonopoly clearance was extended to hotel management projects. At present there is an established practice of applying to the Antimonopoly Committee of