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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.

Maintenance & Repairs

Why This Matters: Well-defined maintenance terms prevent disputes, avoid unexpected expenses, and preserve property value and operational continuity.

Negotiation strategy

If you're the Owner:

Negotiate to limit your repair responsibilities to non-structural elements and ensure a cap on liability for structural repairs. Advocate for a clear notice and repair procedure to avoid unexpected costs.

If you're the Operator:

Ensure the tenant is responsible for maintaining the interior and non-structural elements. Propose a cost-sharing mechanism for structural repairs to mitigate financial burden.

Essential elements

1

Maintenance Obligations

Tenant's interior maintenance duties.
2

Repair Responsibilities

Landlord's structural repair duties.
3

Cost-Sharing Mechanism

Shared costs for structural repairs.

Action framework

ACCEPT

Propose edits if the cost-sharing ratio is unfavorable or the liability cap is too high.

EDIT

Reject if the clause imposes unreasonable repair responsibilities on the tenant.

ADD

Add language to clarify emergency repair procedures and reimbursement terms.

PRO TIP

Always include a clear notice and repair procedure to streamline communication and avoid disputes.

Real-world examples

FAVORABLE

Balanced Maintenance Clause

"The Tenant shall maintain the interior, while the Landlord handles structural repairs, with a cost-sharing mechanism in place."
NEUTRAL

Standard Repair Clause

"Both parties agree to maintain their respective areas of responsibility as outlined in the lease."
UNFAVORABLE

Unbalanced Repair Obligations

"The Tenant is responsible for all repairs, including structural components, without a liability cap."

Alternative scenarios & positions

High-Risk Projects

In high-risk projects, ensure a detailed risk assessment is conducted to allocate repair responsibilities appropriately, considering potential hazards.

Short-Term Leases

For short-term leases, negotiate minimal tenant repair obligations to reflect the limited duration and investment in the property.

Historic Buildings

In historic buildings, additional clauses may be needed to address preservation requirements and specialized repair techniques.

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