Are electronic signatures legally binding?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws (adopted in 49 states and DC) provided the transaction meets intent, consent, attribution, and retention requirements.

Do I need to notarize the agreement?

Most hospitality management agreements do not require notarization to be valid, but a notary acknowledgment may be useful for certain recordings or lender requirements; check lender or local recording requirements before execution.

Can remote online notarization (RON) be used?

Many states permit RON with identity proofing and audio‑video recording; confirm the state’s RON rules—for example, California has a separate RON process and New York follows ESRA procedures.

Who must sign on behalf of each party?

An authorized signatory listed in corporate records or with delegated authority should sign. Obtain a corporate resolution or power of attorney if needed to demonstrate signing authority.

How long must I retain the executed agreement?

Retain for the contract term plus at least 3 years; retain financial and tax records for three years (IRC §6501(a)) and HIPAA-related records for six years (45 CFR §164.530(j)) where applicable.

What platform security and compliance should I verify?

Confirm encryption (TLS and AES-256), audit trail, SOC 2 Type II, and HIPAA BAA availability if handling PHI; platforms differ in authentication and retention capabilities, so choose per regulatory needs.

Electronic Signature
Templates
Miscellaneous
Hospitality Management Agreement

Hospitality Management Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

HOSPITALITY MANAGEMENT AGREEMENT

This Hospitality Management Agreement (the Agreement) is entered into effective as of by and between Owner Name: , having an address at (Owner), and Manager Name: , having an address at (Manager).

RECITALS

WHEREAS, Owner is the legal owner of the hospitality property identified as Property Name: located at (Property); and

WHEREAS, Owner desires to engage Manager to operate, manage and oversee the day-to-day hospitality operations of the Property, and Manager represents that it has the experience and capacity to perform such services under the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

SCOPE OF SERVICES

Manager shall provide comprehensive management services for the Property including, without limitation, operations management, staffing and labor supervision, guest services, sales and marketing, procurement, maintenance oversight, revenue management, reservations and distribution channel oversight, and financial reporting as more fully described below.

Detailed Scope of Work

MANAGER RESPONSIBILITIES

Manager shall perform services in a commercially reasonable manner and in accordance with industry standards. Manager's specific responsibilities include staffing, guest relations, maintenance coordination, third-party vendor procurement, meeting required performance standards and timely recordkeeping. Manager shall comply with all applicable laws and shall not materially alter the character or approved branding of the Property without Owner's prior written consent.

Select primary management functions to be provided (check all that apply):

Marketing & Distribution Reservations & Front Desk Staffing & Payroll Oversight Maintenance & Capital Projects

PAYMENT TERMS

As compensation for Services, Owner shall pay Manager as follows:

Management Fee (percentage of Gross Revenues) Fixed Monthly Fee (if applicable) Payment Schedule and Method Late Payment

Any payment not made within days after the due date shall incur a late fee equal to % per month, compounded monthly, until paid. Manager may suspend discretionary services if fees are overdue beyond days after notice.

TERM AND TERMINATION

This Agreement commences on Start Date: and will continue until End Date: unless earlier terminated in accordance with this Agreement. This Agreement shall automatically renew for successive periods of months unless either party provides written notice of non-renewal at least days prior to the expiration of the then-current term.

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within days after receipt of written notice specifying the breach. Owner may terminate immediately for insolvency of Manager or gross negligence. Manager may terminate if Owner fails to pay undisputed amounts due within the periods set forth above.

CONFIDENTIALITY

Each party shall keep confidential and shall not disclose to any third party any Confidential Information of the other party except as required by law or as necessary to perform its obligations under this Agreement. Confidential Information includes proprietary operations, guest lists, pricing, and financial information. Confidentiality obligations survive termination for a period of five (5) years.

INSURANCE; INDEMNIFICATION

Manager shall maintain commercial general liability insurance, employer's liability and property insurance as reasonably required for operations of the Property and shall name Owner as an additional insured where applicable. Manager shall indemnify and hold Owner harmless from and against any losses, liabilities, claims or expenses arising from Manager's gross negligence or willful misconduct. Owner shall indemnify Manager for liabilities arising from Owner's breach of title, hazardous conditions on the Property not caused by Manager, or Owner's misrepresentations.

REPORTING; RECORDS

Manager shall prepare and deliver to Owner monthly financial statements, revenue and occupancy reports, and an annual budget. Reporting frequency: . Owner shall have the right to inspect books and records upon reasonable prior notice during normal business hours.

NOTICES

Owner Notice Address Manager Notice Address

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles. Venue for any dispute arising out of this Agreement shall be in the state or federal courts located within that state.

ENTIRE AGREEMENT

This Agreement, including all exhibits and schedules attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, whether written or oral. Any amendment to this Agreement must be in writing and signed by both parties.

The parties acknowledge that they have negotiated the terms of this Agreement and that any rule of construction that ambiguities are to be resolved against the drafter shall not apply. If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Owner:

By:

Date:

Manager:

By:

Date:

What a Hospitality Management Agreement Is and When It’s Used

A Hospitality Management Agreement is a written contract that sets out the relationship between an owner of a hotel, resort, or other lodging property and a professional management company that will operate the property on the owner’s behalf. The agreement allocates responsibilities such as operations, staffing, maintenance, branding, revenue management, performance targets, reporting, fees and expense reimbursement. It also sets term length, termination rights, indemnities, insurance requirements, and auditing or inspection rights. This document is typically negotiated by counsel and financial advisors and becomes the controlling operational contract while in effect.

Why a Clear Management Agreement Matters for Owners and Operators

A well-drafted Hospitality Management Agreement clarifies operational responsibilities, aligns incentives through fee and performance provisions, and reduces disputes by defining reporting, audit rights, and termination mechanics. It creates measurable performance standards that protect owner investment while giving managers authority to run day-to-day operations.

Who Typically Prepares and Signs This Agreement

Parties and advisors commonly involved in negotiating and executing a Hospitality Management Agreement.

Hotel or resort owners and investment sponsors who retain a management company to operate the property and protect asset value.
Third-party management companies and regional operating groups responsible for day-to-day hotel operations, staffing, and brand standards.
Legal counsel, accounting teams, and lenders or equity partners that review performance covenants, indemnities, and reporting obligations.

Execution usually requires signatures from authorized representatives of both owner and manager; lenders may require consent or estoppel letters before closing.

Core Clauses to Include in a Professional Hospitality Management Agreement

Include specific operational and financial provisions so obligations and remedies are clear and enforceable.

Scope of Services

Detail daily operations, reservations, housekeeping, F&B, maintenance, procurement, and any limitations on the manager’s authority to enter contracts or obligate capital expenditure.

Term and Renewal

State initial term length, automatic renewal mechanics, early termination rights for material breach, and any cure periods or termination fees.

Fees and Incentives

Define base management fee, incentive/percentage fees tied to gross operating profit or GOPPAR, expense reimbursement, and timing of payments.

Performance Standards

Set KPIs, occupancy and ADR benchmarks, reporting cadence, audit rights, and remedies for persistent underperformance including fee reduction or termination triggers.

Capital Expenditure

Allocate responsibility for capital projects, approval thresholds, and funding mechanics, including reserve accounts and owner vs manager capital obligations.

Liability and Insurance

Detail indemnities, limits on manager liability, required insurance coverages, and any holdback or escrow arrangements to secure claims.

Step-by-Step: How to Complete a Hospitality Management Agreement

Follow these sequential steps to prepare, review, and execute the agreement efficiently.

01

Drafting: Prepare initial draft with standard clauses and customized schedules.
02

Internal Review: Legal, finance, and operations review for commercial and compliance risks.
03

Negotiation: Exchange redlines and finalize deal points with counsel.
04

Execution: Obtain authorized signatures and distribute fully executed copies to stakeholders.

How to Configure a Digital Workflow for This Agreement

Set up fields and routing so reviewers and signers receive the document in the correct order.

Field	Configuration
Signer Order	Owner first \| Manager second
Required Fields	Signatures, dates, fee schedules, and initialed exhibits
Authentication	Email link with optional SMS code or multi-factor for high-value deals
Notification	Email reminders and download permission after signing

Digital Signing and eSubmission Requirements

Confirm platform capabilities before sending the agreement for electronic signature.

File Formats: PDF or DOCX
Audit Trail: Timestamped events
Authentication: Email, SMS, or stronger

Choose a platform that supports audit trails, document retention, and the level of signer authentication your transaction requires.

Typical Electronic Signing Flow for a Management Agreement

A standard e-sign workflow moves the document through upload, field placement, signer delivery, authentication, signing and archival.

Upload: Upload the final PDF or DOCX.
Place Fields: Add signature, date, and initial fields.
Send: Deliver to signers in the required order.
Complete: Capture signatures and produce an audit certificate.

Key Timing Considerations and Deadlines

Track dates that affect commencement, fee schedules, notice periods, and required filings or recordings.

Effective Date Entry:

Signers should confirm the agreed MM/DD/YYYY effective date before execution.

Notice Periods:

Cure and termination notices often require 30–90 days depending on clause language.

Fee Payment Schedule:

Specify monthly or quarterly payment dates to avoid late disputes.

Audit Windows:

Contract may permit annual or interim audits with advance notice terms.

Recording Requirements:

Most agreements do not require recording, but related deeds or leases might.

Milestones from Negotiation to Operational Handover

Sequential stages to track major milestones and responsible parties during closing and handover.

01

Term Sheet Signed

Confirm commercial terms and authorize counsel to draft definitive agreement.

02

Draft Finalized

Complete redline exchanges and produce an execution copy.

03

Approvals Obtained

Secure lender or equity consents, board approvals where required.

04

Operational Handover

Transfer keys, access, and operating manuals to manager.

Common Preparation Mistakes to Avoid

Leaving fee formulas ambiguous or tied to undefined metrics creates disputes and delayed payments.
Failing to specify reserve funding, approval thresholds, or capital budgeting responsibilities increases conflict over capex.
Not documenting reporting frequency and format leads to inconsistent performance measurement and audit difficulties.
Using unsigned or incomplete exhibits and schedules can render key commercial terms unenforceable.

Material Risks and Potential Consequences

Contractual Damages: Breach can trigger monetary damages or termination rights.

Operational Disruption: Poorly drafted transition clauses can cause service interruptions.

Regulatory Exposure: Failure to protect guest data risks regulatory action.

Third-Party Liability: Vendor or supplier claims can flow to owner or manager.

Lender Defaults: Violating loan covenants may accelerate debt.

Tax Consequences: Improper fee reporting may create IRS issues.

Data Security and Compliance Items to Include

Data Protection: Encryption in transit and at rest

PII Handling: Access controls and logging

Breach Notification: Defined reporting timelines

HIPAA Considerations: BAA required if PHI processed

Audit Trail: Signed document and event log

Retention: Secure archival and disposal

eSignature Vendor Pricing and Feature Comparison for Hospitality Agreements

Comparison of starter pricing and select capabilities across common eSignature providers; signNow appears first per page conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day free trial	Varies by promotion	Varies by promotion	Varies by promotion	Varies by promotion
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About Executing a Hospitality Management Agreement

Answers to common questions about legal validity, digital signing, notary use, and recordkeeping for Hospitality Management Agreements.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws (adopted in 49 states and DC) provided the transaction meets intent, consent, attribution, and retention requirements.
Do I need to notarize the agreement?
Most hospitality management agreements do not require notarization to be valid, but a notary acknowledgment may be useful for certain recordings or lender requirements; check lender or local recording requirements before execution.
Can remote online notarization (RON) be used?
Many states permit RON with identity proofing and audio‑video recording; confirm the state’s RON rules—for example, California has a separate RON process and New York follows ESRA procedures.
Who must sign on behalf of each party?
An authorized signatory listed in corporate records or with delegated authority should sign. Obtain a corporate resolution or power of attorney if needed to demonstrate signing authority.
How long must I retain the executed agreement?
Retain for the contract term plus at least 3 years; retain financial and tax records for three years (IRC §6501(a)) and HIPAA-related records for six years (45 CFR §164.530(j)) where applicable.
What platform security and compliance should I verify?
Confirm encryption (TLS and AES-256), audit trail, SOC 2 Type II, and HIPAA BAA availability if handling PHI; platforms differ in authentication and retention capabilities, so choose per regulatory needs.

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