A fundamental shift has taken place in the realm of hotel management agreements (HMAs) and we decided we could just not wait any longer to update our popular handbook on this important subject. So, it is with great excitement that my partner and co-author, Bob Braun, and I announce the publication of the 3rd edition of The HMA & Franchise Agreement Handbook.
Like all the handbooks in our We Wrote the Book™ series, it specifically addresses the needs of hotel owners, developers, investors and lenders. The news release below explains what all the commotion is about and will tell you how to get your free copy of The Handbook. As always, we invite you to share your comments and thoughts about the book with us.
Along with all the latest financing sources, and deal technology, we will be talking about HMAs and franchise agreements at the Meet the Money® national hotel finance and investment conference May 7-9, 2014. We hope you can join us there!
The Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP (JMBM) is pleased to announce publication of the 3rd edition ofThe HMA & Franchise Agreement Handbook, a guide for hotel owners, developers, investors and lenders negotiating or terminating hotel management agreements (HMAs) and franchise agreements.
Co-authored by JMBM's Global Hospitality Group® Chairman, Jim Butler, and Senior Member of the Group, Robert E. Braun, the 3rd edition of The Handbook has been revised extensively to reflect a recent sea change in the industry -- the proliferation of franchise agreements, which have become increasingly negotiable. Hotel management agreements continue to be critical for luxury properties, resorts and larger properties. But for bread-and-butter hotels and the hot select service segment, owners and brands are placing more importance than ever on franchise agreements.
The Handbook has been expanded to include a new chapter devoted to franchise agreements, brands and independent management agreements. The 3rd edition also includes a discussion of recent court rulings that allow owners to terminate long-term, "no-cut" branded management agreements.
"Hotel management agreements remain a foundation for the profitability and value of a hotel, particularly in luxury, destination resort, and larger convention hotel segments," said Butler. "But franchise agreements, independent operators and unbranded properties have become so important, particularly in select service and upscale segments, that we needed to deal with the phenomenon in The Handbook."
"More brands are focusing on franchises and limiting branded management to strategic assets," said Braun. "As a result, the relationship between brands, independent managers, lenders and owners has become more complex and requires the insights and advice of hotel industry insiders like our Global Hospitality Group®."
Butler and Braun will both speak at the 24th annual Meet the Money® hotel finance and investment conference on May 5-7 in Los Angeles, which will address many of the topics covered in the book. For more information on the conference speakers and presentations, visit MeetTheMoney.com.
How to get a free copy of the 3rd edition of the HMA Handbook
To download your free copy of the 3rd edition of The HMA & Franchise Agreement Handbook, go to the Resource Center on HotelLawyer.com.
Important topics covered in the 3rd edition of The HMA & Franchise Agreement Handbook
The HMA & Franchise Agreement Handbook covers four major topics that are critical to every hotel owner, developer, investor or lender:
1. How to get a great hotel operator
- Maximizing hotel value with management, branding and franchise
- Three of the most important things you will ever do for your hotel
- The five biggest mistakes hotel owners make in selecting operators and negotiating brand HMAs
- How to get a great hotel operator and a fair hotel management agreement
- How to negotiate an HMA
- What to do before you start negotiating your brand HMA
- Hotel management agreement performance standards and why they matter
- Five keys for good HMA budget provisions
- Indemnification provisions
- Subordination agreements and how they affect the value, financeability and collateral value of a hotel
- Exculpation clauses
- Decisions about brands and management
- The myth that franchise agreements cannot be negotiated
- Five things to keep in mind when you look for a hotel operator
- The importance of comfort letters in financing franchised hotels
- Brand franchise issues in hotel purchase and sale transactions
- Dual-branded hotels
- The trap of "changing brand standards"
- Why is hotel management agreement litigation on the rise?
- Why all long-term hotel management agreements are now terminable
- Marriott v. Eden Roc -- what it all means for terminating hotel management agreements
- Importance of fiduciary duties in disputes between hotel owners and hotel operators
- Terminating hotel management agreements when things don't work
This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We've done more than $68 billion of hotel transactions and have developed innovative solutions to unlock value from hotels. Who's your hotel lawyer?
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