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PLAYBOOK TEMPLATES
Hospitality Hotel Contract
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.
Lease Term & Renewal
Negotiation strategy
Negotiate for flexible renewal options and ensure rent adjustments are based on fair market value. Aim for longer initial terms to secure stability.
Ensure renewal terms are clear and protect against unfavorable rent adjustments. Consider shorter initial terms to allow for market rate adjustments.
Essential elements
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Lease Term
Duration of the lease agreement.
2
Renewal Option
Conditions for extending the lease.
3
Rent Adjustment
Method for adjusting rent upon renewal.
Action framework
ACCEPT
Propose edits if renewal terms are unclear or rent adjustments are not market-based.
EDIT
Reject if the lease term is too short or renewal options are overly restrictive.
ADD
Add clauses for rent adjustment and notice of termination if missing.
PRO TIP
Always align lease terms with long-term business objectives to avoid frequent renegotiations.
Real-world examples
FAVORABLE
Preferred Lease Term
"The initial term of this Lease shall commence on the Commencement Date and shall continue for a period of [insert number] years, unless sooner terminated as provided herein."
NEUTRAL
Standard Renewal Option
"Tenant shall have the option to renew this Lease for [insert number] additional term(s) of [insert number] years each, provided that Tenant gives Landlord written notice of its intention to renew at least [insert number] days prior to the expiration of the then-current term."
UNFAVORABLE
Ambiguous Rent Adjustment
"Rent for the renewal term shall be adjusted as agreed upon by both parties without a specified method."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure lease terms allow for early termination without penalties to mitigate potential losses.
Rapid Expansion Plans
For companies with rapid expansion plans, negotiate shorter lease terms with multiple renewal options to maintain flexibility.
Market Volatility
In volatile markets, include clauses that allow for rent adjustments based on economic indices to protect against sudden market changes.
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