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MEASURING PERFORMANCE IN A HOTEL MANAGEMENT AGREEMENT-OWNER'S ANXIETY
A hotel management agreement defines the relationship between the owner and the operator of a hotel. The relationship between these two parties is driven primarily by contract and not by equity or property, and as such aligning the interest of both parties is critical. The operator looks at a long-term undisturbed right to operate the hotel under its brand standards and the owner is interested in return from the property.