What should an owner look for in a hotel management agreement?

The term and renewal rights, fees tied to performance, approval over annual budgets, objective performance tests and clear termination rights.

What licences does a hotel need?

Typically trade, food safety, excise (for alcohol), fire, police and local body licences, each depending on the state and city. Requirements should be confirmed for the location.

Can a dispute with a hotel operator go to arbitration?

Most hotel management agreements contain an arbitration clause, so disputes are usually decided by arbitration, with court applications for interim relief.

What criminal issues arise in hospitality?

Examples include cheque dishonour, employee and contractor disputes, guest incidents and allegations connected with licensing or safety.

Hospitality Lawyers, India | Alagh & Kapoor Law Offices

Hospitality law covers the contracts, licences and disputes of hotels, resorts and restaurants. The Firm acts for companies in the sector on commercial and criminal disputes, regulatory compliance, due diligence and market entry.

What the law looks like

Most branded hotels in India run under a hotel management agreement, in which an owner engages an operator for a fee. The key terms are the length of the term, the base and incentive fees, the owner's approval rights over budgets, performance tests, and when either side may terminate. Disputes often turn on termination and on the operator's exit. A hotel also needs a number of licences and registrations, including for food, alcohol, fire safety and the registration of foreign guests, which vary by state.

Scope of Work

hotel management agreements
transaction documentation
due diligence and market entry
commercial and criminal disputes
regulatory compliance

Questions and Answers

What should an owner look for in a hotel management agreement?: The term and renewal rights, fees tied to performance, approval over annual budgets, objective performance tests and clear termination rights.
What licences does a hotel need?: Typically trade, food safety, excise (for alcohol), fire, police and local body licences, each depending on the state and city. Requirements should be confirmed for the location.
Can a dispute with a hotel operator go to arbitration?: Most hotel management agreements contain an arbitration clause, so disputes are usually decided by arbitration, with court applications for interim relief.
What criminal issues arise in hospitality?: Examples include cheque dishonour, employee and contractor disputes, guest incidents and allegations connected with licensing or safety.

For enquiries relating to this sector, please write to info@aklawoffices.in.