Industry Report: MOUs Explained

The negotiation of a hotel management agreement is a complex process, typically preceded by the negotiation of a memorandum of understanding (MOU) or a letter of intent. The MOU sets out the prime commercial terms presented by the operator on which the hotel management agreement package will later be drafted. Missing out on resolving issues at this preparatory phase may lead to either party finding itself in an unfavorable position when the management agreement package arrives.

Horwath HTL Health & Wellness clarifies the rationale behind key terms and common issues that arise during the negotiation process, and discusses specifics and benchmarks related to wellness resorts and wellness real estate developments.