Has Eden Roc Really Impacted Hotel Management Agreements?

Law360, New York (March 3, 2015, 10:17 AM EST) -- Twenty years ago, nearly all full-service hotels were owned and operated by global brands. In the intervening years, virtually all those brands have moved toward an “asset-light” strategy, divesting themselves from the burdens of hotel ownership and focusing instead on hotel management and franchising.[1] This evolution in the industry’s structure increased the importance of hotel management agreements (“HMAs”) as more and more new hotel owners have hired these third-party managers to operate and manage their assets.

Amid this shift in dynamics, issues related to the owner-operator relationship and under what circumstances an owner might be able to terminate an operator frequently...

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