Spa Management Agreement

Depending on your needs and strategic objectives, ExclusivelySpa offers different forms of collaboration that can be adapted to your needs, from the standard management contract or joint venture to management consulting. There are many clauses within an AHH that may need to be reviewed and rethought if existing contracts are changed or new contracts are developed. This will be a renegotiation process, as a long-term agreement is likely in place. Below are some of the most important areas you should focus on if you are able to renegotiate your current agreement or keep future contracts in mind. Many of the following changes require the lender`s agreement, but this document will not answer lenders` questions. COVID-19 has associated the hospitality industry with many uncertainties for the future. Several vulnerabilities and risk areas have also been highlighted in the context of hotel management agreements (HMA`s). As these weaknesses become increasingly evident, it is important to decide which points to focus on, how to adapt them in the future and how each party can make the necessary adjustments to help each other. The GOR, which forms the basis for calculating the basic management fee, includes all direct or indirect revenues of the holding, such as. B room revenues, revenues from branded building rental programs, food and beverage receipts, service fees, laundry fees, telecommunications revenues, revenues from spa, wellness and fitness facilities, banquet and restaurant receipts, parking revenues and exchange commissions. Global Asset Solutions, your main partner in hotel asset management, has teamed up with a team of five students and an Alumna from the Ecole Hôtelière de Lausanne, recognized by industry leaders as the best hotel school in the world.

Together, we are working to put in place best practices to help hotel owners and operators get through the COVID-19 crisis. By combining careful research, expert advice and our own experience, we will publish best practices on the most current topics in our industry. The APAC team consists of Paloma Guerra, Mingze Li and Zhaoyu Zhu, while Eliana Levine, Larina Maira Laube and Vani van Nielen form our EU & US team and Remy Rein (EHL Lecturer). Of course, every agreement has two sides. However, as an asset manager, it is our responsibility to protect the interests of the owner, as can be seen in the content below. However, it is essential to recognise the importance of the rights of the operator. Finally, everything revolves around the hotel and each party must make concessions to support its successful sustainability. Since the central principle of the agreement is revenue sharing, both parties must have full control over the revenue generated. Most hotels prefer guests to offload spa treatments to their room account. Most hotel guests also prefer it, and this helps ensure that the spa operator is not tempted to trick the hotel for revenue by not having it go through the checkout or POS system.

Still, there will occasionally be guests who prefer to pay directly at the spa. Again, management agreements should reflect the interests of both parties and, while respecting the interests of the above-mentioned owner, the conditions of brands and operators should be respected. At the end of the day, the two sides are expected to work together to preserve the hotel. The above clauses have either been affected by COVID-19 or the pandemic has revealed its weaknesses and each should be adapted and renegotiated according to each hotel and contract. Please contact us at info@globalassetsolutions.com, we would be happy to offer you our services, evaluate your management contract and develop an action plan for you to move forward.. . . .

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