Hotel Management Agreement Force Majeure

The dispute resolution process is another area that deserves a deeper look, Cocci said. When hotels were faced with the possibility of closure, owners lost money, operators faced risks with their employees and employees` salaries, the arguments «raise their ugly heads,» she said. In the United States, brand management and third-party HMAs require hotel staff to be designated as an employee of the manager. Along with this designation, officers often require owners to have employer liability insurance to cover the liability that an officer may be held liable for employee behaviour. As a general rule, an HMA has a specific provision concerning situations in which the operator cannot operate the hotel due to an event of force majeure or where it would be reasonably necessary for the operator to cease operations in order to protect the hotel and the health and safety resulting from an event of force majeure. Hospitality agreements are a special form of contract comprising a complex set of documentation — the company agreement, the license agreement, the technical specification agreement and centralized service agreements. We are often confused between hospitality and hotel management. Hotel management includes learning management techniques that apply to hotel management, marketing, housekeeping, maintenance, catering, etc. Unlike hospitality, hotel management focuses on hospitality and how it works. Subject to the Hotel Management Agreement («HMA») and internal agreements between an owner and operator, the following key issues are as follows, which we believe is relevant for the owner and operator to extend the operation of the hotel. The effects of the closure of one or more hotels in a competitive environment should also be taken into account in the context of the relevant provisions of the CMA.

In addition, the Ministry of Tourism and Creative Industries has published studies on reducing the risks related to the impact of COVID-19 on this sector («Mitigation Studies»). According to mitigation studies, the average hotel occupancy rate fell to 8% (eight percent) after the Indonesian government`s («GOI») announcement and the utilization rate is expected to fall below 8% (8%) in the following months. Some brand management and HMAs agreements include, as force majeure events, «outbreaks, quarantines or other public health restrictions or public health recommendations… » and allow the manager, in consultation with the owner, to close the hotel and possibly terminate the contract. . . .