A Hospitality Hotel Contract covers management, operation, or branding arrangements in the hospitality sector. This playbook guides negotiation of performance benchmarks, termination rights, and brand compliance.
Why This Matters: Well-managed alteration terms protect property integrity, avoid disputes over costs, and clarify exit obligations.
Negotiation strategy
If you're the Owner:
Negotiate for flexibility in making alterations with minimal restrictions. Ensure cost-sharing for legally required changes.
If you're the Operator:
Require detailed plans for approval and ensure restoration obligations are clear. Protect ownership rights over permanent improvements.
Essential elements
1
Approval Process
Consent required for changes.
2
Cost-Sharing
Allocation of alteration expenses.
3
Restoration Obligations
Return property to original state.
Action framework
ACCEPT
Propose edits if the approval process is too restrictive or lacks clarity.
EDIT
Reject if the clause imposes unreasonable restoration obligations.
ADD
Add language for cost-sharing on legally required alterations.
PRO TIP
Always document all agreed alterations and improvements to avoid future disputes.
Example clauses
FAVORABLE
Balanced Approval Process
"Tenant shall not make any alterations, additions, or improvements to the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned, or delayed."
NEUTRAL
Standard Cost Allocation
"Unless otherwise agreed in writing, Tenant shall bear all costs and expenses associated with any alterations, additions, or improvements to the Premises."
UNFAVORABLE
Excessive Restoration Requirement
"Tenant shall restore the Premises to its original condition, including removal of all improvements, regardless of Landlord's consent to retain them."
Fallbacks
High-Risk Projects
In high-risk projects, ensure additional insurance coverage and compliance with safety regulations are addressed.
Government-Mandated Changes
For alterations required by government mandates, negotiate equitable cost-sharing and compliance timelines.
Short-Term Leases
In short-term leases, focus on minimizing restoration obligations and clarifying temporary improvement ownership.
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