As part of an agreement through a villa agency, the hotel is assigned by each villa owner, as an agent, to manage the villa and rent it to hotel guests. The hotel also provides general management services and offers hotel guests, on behalf of the villa owner, hotel-related services, i.e. booking services, food and beverages, facilities for hotel guests, etc., including maintenance, accounting and management services. When carrying out the above obligations, the hotel company acts exclusively as an intermediary for, on behalf of and on behalf of the villa owner. In accordance with this relationship between the senior agent, the hotel is entitled to a refund of the amounts incurred during the execution of the work for the owner of the villa. The hotel administration agreement often includes restrictions on the type of people the owner can delegate to the hotel management contract or to which the owner sells the hotel. In the first part, we discuss performance tests, control of the hotel`s operations, issues relating to brand standards, the assignment of the hotel management contract and termination rights. As part of the operating gross margin test, the operator will not pass the test, so the owner has the right to terminate the hotel administration contract if the hotel does not meet a minimum percentage of GOP (usually 80% to 90%). Based on our experience in negotiating hotel management agreements in Asia and the Middle East, this article addresses some of the most important issues that need to be addressed by hotel owners. In 1963, the hotel`s management agreements were drawn from an amended lease agreement for the Hong Kong Hilton, and most HMAs still support the main conditions it contains. Today, all the major chains have expanded to some extent nationally and internationally through a combination of franchise and management, and all have their own „form“ or template agreements.

In summary, in recent years, we have seen that the trends observed following the financial crisis of the last decade have evolved. In many markets, the onset of the recession has made operators less risky. Traditionally, HMAs were a way to limit operators` exposure to fixed rents when incomes declined. In less developed markets such as Romania and the United Arab Emirates, operators continued to use PDOs in this way, despite some economic recovery. In more developed markets such as Spain and the United Kingdom, we have seen increasing complexity of agreements, which is why owners are becoming more proficient and looking for more control and input for the operation of their hotel, although owners continue to take the share of the greatest commercial risk in development. Much has been written about the practical value of these clauses to protect the hotel owner from the poor performance of the operator, and we identify some of the following pitfalls. Despite these pitfalls, performance testing in most hotel management contracts follows a similar formula. The fee is normally a number of years to be paid to the operator (calculated on the basis of the average of the royalties paid in recent years). The number of years may relate to the number of years remaining in the hotel administration agreement, or it could be a number agreed in advance, for example. B of a three- to five-year fee. The performance test is not valid for the first few years of operation, so the hotel has time to stabilize; The operator is not required to take the test for consecutive years before the owner`s right to terminate is triggered. Conversely, the operator often requires a fee for the transfer of the owner`s rights under the hotel management contract, including in the event of a change of control of the owner.