So where are we? Owners and management companies find themselves in a very bleak legal context, where hotel management contracts are accompanied by an overlay of conflicting and uncertain common law principles. Maybe there`s a case somewhere that`s going to solve this. This is probably a dispute between an owner and a management company, in which the owner claims to terminate the contract, perhaps without even an announcement or compliance with other contractual obligations, such as possibility. B for the management company to settle the alleged default. And there is a judge there who will think that the hotel management agreement was carefully designed by competent lawyers and negotiated zealously by both parties. Then the court may be the parties to the good deal they freely negotiated, which is embodied in their commercial contract, without resorting to the common law agency or principles of service at the same time. I believe that this will ensure greater security and clarity and leave the parties to the agreement they have cut, without one or the other being able to benefit from the help of the common law. a. Starting at 90 (90) days before the first day of each exercise, the hotel management works with the owner to provide the owner with all the available hotel operating information that the owner has reasonably requested for the current and next fiscal year. Thirty (30) days at the latest before the start of each fiscal year, the manager submits to the owner an interim business plan containing estimates of gross revenues, departmental profits, deductions and operating results for the coming fiscal year, relative to forecasts of revenue, departmental profits, deductions and operating results for the current fiscal year. This comparison will include estimated percentage changes in these items for the coming fiscal year compared to the current fiscal year.
The Chief Operating Officer establishes the Business Plan (hereafter defined) in accordance with system standards and general hotel standards for similar first-class properties. The administrator consults with the owner and reviews in good faith all comments made by the owner regarding the interim budget, including, but not limited to forecasting the administrator`s gross revenues for the coming fiscal year.