Hotel Learning Online

Introduction to the Course and Its Purpose

Navigating the complex world of hotel management contracts requires more than just business acumen—it demands experience coupled with operational and financial insight. This course, “Hotel Management Contracts: Your Toolbox of Information to Negotiate a Fair Deal,” is designed for hotel owners, investors, consultants, and asset managers who need to protect their interests in an environment often tilted in favor of experienced and well-resourced management companies. Delivered by Steve Rushmore, founder of HVS and a globally recognized authority in hotel consulting, this course provides a complete and practical education on every aspect of management contracts. Participants will emerge with a sophisticated understanding of how to structure, negotiate, and enforce contracts that safeguard owner interests while preserving operational excellence.  Upon successfully completing the course, students receive the Certified Hotel Management Contract Negotiator certification and certificate, showing their knowledge in negotiating hotel management contracts.  

The High Stakes of Hotel Management Agreements

Hotel management contracts are not just operational documents, they are long-term business commitments that shape the financial viability and marketability of a property. A poorly negotiated agreement can leave owners burdened with weak performance, high costs, and virtually no legal recourse. In contrast, a well-structured contract can unlock superior returns, ensure accountability, and preserve the flexibility to adapt, refinance, or sell the asset unencumbered. This course explores every dimension of these high-stakes negotiations, revealing how contract provisions directly impact asset value, debt service coverage, brand equity, and owner control. Understanding these dynamics is essential for anyone looking to succeed in hotel ownership or advisory roles.

Why Most Owners Are at a Disadvantage

Most hotel owners approach management contract negotiations with limited experience and unequal information. In contrast, hotel operators—especially first-tier brands—have entire legal departments and deal teams that negotiate hundreds of contracts a year. This asymmetry puts owners at a severe disadvantage, often resulting in agreements that heavily favor the operator. This course is designed to level the playing field. You will learn how to identify hidden costs, recognize operator-friendly provisions, and negotiate for clauses that provide real protections, such as robust termination rights, financial performance tests, and critical approval rights. By mastering these strategies, owners can shift the balance of power and ensure contracts serve and protect their interests.

What This Course Will Teach You

This course offers a detailed, clause-by-clause examination of hotel management contracts with a focus on practical application. It begins with a foundational understanding of how these contracts are structured, followed by in-depth discussions of performance tests, fee structures, termination rights, operator obligations, and more. You will explore real-world examples, learn how different terms affect profitability, and examine key concepts like agency relationships, fiduciary duties, and subordination clauses. Every session is geared toward providing you with actionable insights, whether you are selecting an operator, renegotiating terms, or preparing for a hotel sale. By the end, you will possess a professional-level understanding of what it takes to protect the owner's interests in any contract negotiation.

Who Should Enroll

This course is essential for hotel owners, asset managers, consultants, developers, real estate investors, and legal professionals involved in hospitality. It is equally valuable for those transitioning from hotel operations into advisory or ownership roles. Whether you are acquiring your first property or managing a portfolio of hotels, understanding management agreements is critical to your success. For hospitality consultants, this course provides the depth needed to advise clients effectively and protect their interests. For lenders and institutional investors, it reveals how contract terms influence financial risk and asset performance. The course is also an ideal fit for law and business school graduates pursuing careers in hospitality investment, development, or advisory services.  Lastly, since the course is oriented towards hotel owners, it is advisable for operators to also enroll in order to fully understand the mindset of their opposition.   

Real-World Scenarios That Will Transform Your Perspective

Throughout the course, we delve into real-world examples of how contract provisions affect hotel operations, profitability, and ownership flexibility. You will examine how owners can be trapped in underperforming agreements due to insufficient termination clauses or properties that failed to meet debt service requirements because of misaligned management fee structures. Just as important, you will explore examples of owner victories—negotiated buyouts, and contracts that allowed for swift removal of operators after performance failures. These scenarios are not theoretical; they are drawn from decades of Steve Rushmore’s experience negotiating across hundreds of properties worldwide. You will leave with a set of tools and real knowledge that can be applied immediately in your business or consulting practice.

What Makes This Course Unique

Unlike other programs that provide broad overviews, this course is laser-focused on the financial and operational nuances of hotel management agreements. What sets it apart is the unparalleled level of detail, the practical focus, and the credibility of the instructor. Steve Rushmore has spent over 40 years analyzing, negotiating, and valuing hotel management contracts and brings a uniquely owner-centric lens to every lesson. In addition to detailed lectures, you will receive annotated handouts, proprietary contract models, and a reference guide that distills the most critical concepts into a usable format for daily practice. No other course provides this depth of instruction from a recognized global authority.

Understanding the Operator’s Incentives

A key to successful contract negotiation is understanding what motivates the other party. This course explains the economics of hotel management from the operator’s point of view—how base fees, incentive fees, and central service charges shape their behavior. You will learn how operators structure their contracts to maximize fees with minimal downside and how to counterbalance these incentives with provisions that align operator interests with those of the owner. You will explore the operator’s preferred contract terms, such as long initial terms, automatic renewals, and limited termination rights, and how to modify these to ensure owner flexibility and leverage. With this understanding, you can build agreements that reward good performance while protecting against complacency or mismanagement.

The Power of Approval Rights and Performance Tests

Approval rights and performance tests are two of the most powerful tools an owner can wield. When properly negotiated, these provisions allow owners to control key aspects of hotel operations and remove underperforming operators. This course shows you how to structure approval rights over budgets, key personnel, capital expenditures, and marketing initiatives to ensure operational transparency and financial discipline. You will also learn how to design robust performance tests, such as GOP margin thresholds, RevPAR indexing, or budget-to-actual tests, that trigger termination rights if the operator fails to meet expectations. These mechanisms can mean the difference between a hotel that thrives and one that drags down your portfolio.

Termination, Buyouts, and Exit Strategies

Every hotel owner should enter a management agreement with a clear exit strategy. This course explains how to negotiate meaningful termination rights, buyout clauses, and contract conditions that give you the flexibility to change course when necessary. You will learn how to calculate reasonable buyout payments, link renewals to performance metrics, and ensure that any sale of your hotel can proceed unencumbered or with minimal financial penalty. We explore how to structure “without cause” terminations, enforceable cure provisions, and “key money” repayment obligations that restore owner leverage. When done right, these clauses reduce risk and make your hotel significantly more attractive to future buyers and lenders.

Choosing the Right Brand

Selecting a hotel brand is often one of the most consequential decisions an owner can make, affecting everything from guest satisfaction to operational autonomy and exit value. This course explores the strategic and financial implications of affiliating with major brands. You will examine the real costs of a brand affiliation—including loyalty programs, reservation fees, mandatory brand standards, and system-wide marketing—and learn how to evaluate whether the benefits truly justify the expense. The course also contrasts first-tier and second-tier operator models and reveals how to assess their impact on property value, market positioning, and financing. Informed selection of a brand can protect your investment, unlock operational efficiencies, and enhance your property’s market appeal.

How to Select and Negotiate with a Management Company

Finding the right hotel management company—and negotiating a favorable agreement—requires more than industry referrals or gut instinct. This course provides a comprehensive framework for executing a professional operator search process. You will learn how to develop and distribute an effective Request for Proposal (RFP), evaluate responses based on both qualitative and quantitative criteria, and structure interviews that uncover each candidate’s true capabilities. You will receive templates for rating operators and comparing offers side-by-side. Most importantly, the course will prepare you to negotiate with confidence, understanding which provisions are negotiable, which are critical, and how to avoid the traps that experienced operators often set. This module alone can save hotel owners millions over the life of a contract.

Uncovering Hidden Fees and Central Services Costs

Management contracts often contain complex fee structures and embedded costs that can erode profitability without the owner even realizing it. This course provides a detailed breakdown of central services fees—those charges related to reservation systems, marketing, IT infrastructure, and accounting support that are often assessed without negotiation. You will learn how to request supporting documentation, demand transparency, and negotiate fee caps or performance-based pricing. We explore the different charging mechanisms operators use, including per-room fees, percentage-of-revenue models, and flat-rate structures, highlighting which are fair and which can be manipulated. This knowledge is essential for ensuring that the economic benefits of your hotel flow to you, not disproportionately to the operator.

Managing Legal Risks and Protecting Your Investment

Hotel management contracts are legal instruments, and poor drafting can lead to costly disputes, loss of control, or financial exposure. It is highly recommended that hotel owners also enroll t          heir attorneys in this course so they can work as a team in negotiating and structuring a hotel management contract.  Your attorney will benefit by recognizing and addressing legal landmines, including exculpation clauses, indemnification provisions, and SNDA agreements with lenders. Your attorney will need to understand the implications of agency relationships and fiduciary duties, especially in jurisdictions where management companies are considered the owner’s agent. We also explore the critical issue of “agency coupled with an interest,” which can limit your ability to terminate an operator. With this legal literacy, you and your attorney will be better equipped to safeguard your rights and avoid being locked into disadvantageous positions.

Stand Out in the Hospitality Industry with the Certified Hotel Management Contract Negotiator (CHMCN) Credential

In today’s competitive hospitality landscape, expertise alone is not enough—professionals must also demonstrate their knowledge in a way that is recognized, credible, and career-defining. That’s why every student who successfully completes “Hotel Management Contracts: Your Toolbox of Information to Negotiate a Fair Deal” earns the designation of Certified Hotel Management Contract Negotiator (CHMCN)—a credential that signals a high level of mastery in one of the most critical, yet misunderstood, areas of hotel ownership and advisory.

This professional certification is more than a certificate—it is proof that you possess a rare and highly valuable skill set. It demonstrates that you understand how to analyze, structure, and negotiate hotel management agreements from the owner’s perspective. You know how to craft performance tests, enforce approval rights, limit fees, and secure favorable termination and buyout terms. In an industry where poorly negotiated contracts can cost millions, your CHMCN designation immediately sets you apart from other consultants, investors, and operators.

Graduates receive a formal certificate suitable for display and are encouraged to proudly add the CHMCN designation to their LinkedIn profile, business card, email signature, and resume. This public recognition enhances your professional credibility, expands your visibility within the industry, and sends a clear message to employers, clients, and partners: you are uniquely equipped to protect ownership interests and negotiate with confidence.

Certified graduates of the course will also be included in an exclusive online directory of Certified Hotel Management Contract Negotiators (CHMCNs) hosted at www.hotelmanagementcontracts.com. This public registry serves as a trusted resource for hotel owners, developers, investors, attorneys, and lenders seeking professionals with verified expertise in hotel management and franchise contract negotiation. Inclusion in this directory enhances your professional visibility, showcases your credentials to a global audience, and connects you to new business and career opportunities. As the only curated listing of its kind, it underscores your authority in this specialized field and positions you as a go-to expert for high-stakes hotel contract advisory.

For hotel owners, this certification builds personal negotiation strength. For consultants and advisors, it strengthens your ability to win client trust and deliver greater value. For professionals shifting from hotel operations to ownership or asset management, it bridges the knowledge gap that separates general experience from expert qualification.

By completing this course and earning your CHMCN certification, you gain more than knowledge—you gain a lasting professional advantage. Let the industry know that you’re not just involved in hospitality contracts—you’re an expert.

Take Control of Your Hotel Investment—Enroll Today

Whether you are acquiring your first hotel, managing a growing portfolio, or advising clients on hospitality transactions, this course will provide you with the tools, insight, and confidence to take control of your hotel management agreements. No other program delivers this level of real-world guidance, backed by decades of global consulting experience and grounded in owner-focused strategies. You will not only understand what’s in the fine print—you’ll know how to change it, enforce it, and turn it to your advantage. By enrolling, you gain access to expert instruction, proprietary resources, and a network of professionals committed to mastering this critical aspect of hotel ownership. Don’t let the other side write the rules. Learn how to negotiate a fair deal—one that protects your interests and maximizes your returns.

Click Here to Enroll in Hotel Management Contracts: Your Toolbox of Information to Negotiate a Fair Deal