Hotel management contract is a written agreement between the owner and the operator of the hotel. The base of this relationship is that the operator handles the day-to-day working of the hotel and takes up all the additional responsibilities such as maintenance, front office, housekeeping, handling food and beverages and sale. The management contract company has the power to recruit and fire the employees. The owner will authorize and pay for the capital project of the hotel but the responsibility of it is assigned to the operator.