Media Coverage
Source: HotelNewsNow.com
Media Coverage
07.16.12
Market shifts can play a major role in hotel operations as well as management contracts. The 2008 economic downturn introduced different terms into management contracts than were seen previously, particularly as those contracts apply to owner-approval rights, incentive-fee structures, distribution waterfalls, key money and performance tests.
To uncover the most significant new terms, Pillsbury partner Christian Salaman spoke to a range of hotel general managers about the topic. He heard one major recurring theme: cost containment is a top priority. GM's went on to identify several key areas that would help manage the larger picture more effectively. They include budgets, reports, technology and employees. Salaman noted that these concepts can serve as a guide when revising "old" management contract provisions and serve as a reminder that they should be used to start the relationship between the parties and keep them focused on the issues that matter over the long haul.