Skip to content
  • (800) 580-3950
  • Request a Consultation
Top Menu
Perry GroupPerry Group
Perry Group
Hotel & Restaurant Experts For The Hospitality Industry
  • Home
  • About
    • Bios
    • Contact
  • Services
    • Hospitality Management
    • Hotel Restaurant Nightclub Consulting
    • Hospitality Dispute Solutions
  • Clients
  • Media
    • Articles
    • Presentations
    • Press
  • Investors
  • Blog
 
  • Home
  • About
    • Bios
    • Contact
  • Services
    • Hospitality Management
    • Hotel Restaurant Nightclub Consulting
    • Hospitality Dispute Solutions
  • Clients
  • Media
    • Articles
    • Presentations
    • Press
  • Investors
  • Blog

Hotel Motel Consultant Talk On Terminating Management Contracts

August 27, 2013Experts in Hotels and Restaurants BlogBy G4Developer

In this economy, many owners are turning to a lawyer and hotel motel consultant about canceling the management agreement when the hotel or resort is not performing according to plan. Worse, is if whatever gain is realized only benefits the operator, which can be the case if they have not invested any of their own money into the project or the brand is considered a weak performer in the marketplace. However, this is always easier said than done and terminating hotel or resort management services can be a costly and lengthy process. Here are some recent cases and court rulings on the subject: On the Turnberry v. Fairmont case, a decision which favored the owner was rendered this week. “According to Jim Butler with JMBM’s Global Hospitality Group®, who represented the owner – On Friday, October 14, 2011, a Miami Federal District Court denied Fairmont Hotel’s request for a preliminary injunction to be reinstated as the operator of the hotel.” Attorneys, owners and their hotel motel consultant can find the judge’s decision here. In the case involving the M Edition in Hawaii, the owners terminated the contract and installed new management without the operators consent. Then, a judge ruled that the operator should be reinstated, but a bankruptcy filing precluded this action as well. Now with the reorganization, the case is in limbo. More on this story and the hotel resort management company termination. In addition to the legal ramifications of terminating a management company, especially one that is a major brand, are the effects concerning the marketing viability of a project. Three questions you as an investor or owner should ask and answer from a hotel motel consultant perspective are: 1) Do long term returns justify the short term impact? 2) Will the hotel or resort under a different brand or as an independent operate and perform equally? And, 3) How likely is it you will prevail in court? We suggest hiring good legal counsel too.

 hotel consulting interim hotel managementdistressed hotels
Share this post
FacebookTwitterGoogle+PinterestLinkedIn
About the author

G4Developer

Related posts
nightclub security expert
Tips from a Nightclub Security Expert on Bar Patron Safety
December 15, 2019
interim hotel manager
When You Should Use an Interim Hotel Manager
November 15, 2019
hotel interim manager
Why a Hotel Interim Manager Does Not Always Make Sense
October 15, 2019
hotel security expert
Hotel Security Expert Tips to Manage Security for Female Travelers
September 15, 2019
restaurant turnaround consultant
Choosing a Court-Appointed Receiver or Restaurant Turnaround Consultant
August 15, 2019
shutterstock_785814277
Case Studies in Using a Restaurant Receiver for Resolving Disputes
July 15, 2019
Recent News
  • nightclub security expert
    Tips from a Nightclub Security Expert on Bar Patron Safety
    December 15, 2019
  • interim hotel manager
    When You Should Use an Interim Hotel Manager
    November 15, 2019
  • hotel interim manager
    Why a Hotel Interim Manager Does Not Always Make Sense
    October 15, 2019
  • hotel security expert
    Hotel Security Expert Tips to Manage Security for Female Travelers
    September 15, 2019
  • restaurant turnaround consultant
    Choosing a Court-Appointed Receiver or Restaurant Turnaround Consultant
    August 15, 2019
  • shutterstock_785814277
    Case Studies in Using a Restaurant Receiver for Resolving Disputes
    July 15, 2019
Archives
About Us
Perry Group International is a consortium of hospitality management services and seasoned hospitality consultants with significant operations, marketing and financial experience. Our clients include both nationwide and international assignments.
Recent News
  • Tips from a Nightclub Security Expert on Bar Patron Safety
    December 15, 2019
  • When You Should Use an Interim Hotel Manager
    November 15, 2019
Press
With Industry in "Free Fall," How do Restaurants Survive the Winter?
Perry Group Forms Alliance to Provide One-Stop-Shop for Hotel Receiverships
Food&Wine - Restaurant Burglaries Are on the Rise Despite an Overall Drop in Crime
Restaurant Business - On Top of Everything, Restaurants Are Becoming Burglary Targets
San Francisco Business Times - Dine-In Restaurants Pivot Amid Pandemic to Takeout, Delivery - Even Retail
Indiana Minority Business Magazine - Keeping a locally owned restaurant alive — and thriving
Small Business Trends - The A-Z of Writing a Restaurant Business Plan
Today's Hotelier - Connecting with Young and Old
Follow Me
Tweets by HotelRestExpert
Follow Us

Request a Consultation

(800) 580-3950

dpg@perrygroup.com

San Francisco

201 Mission Street, Suite 1200
San Francisco, CA 94105
(415) 434-0135

Los Angeles

445 S. Figueroa Street, Suite 3100
Los Angeles, CA 90071
(213) 266-7691

San Diego

3111 Camino Del Rio North, Suite 400
San Diego, CA 92108
(619) 296-4278

© 2021 All rights reserved. Design by G4 Design House.
Disclaimer