Credit: Vlad Kochelaevskiy/Adobe Stock Hospitality Performance Tests: Fool's Gold?
Pryor Cashman attorneys Todd Soloway, Bryan Mohler and Itai Raz discuss how performance tests for hotel management function in the real world and look at recent case law interpreting these tests and the manners in which performance tests can and cannot provide additional protection to hotel owners.
November 05, 2024 at 11:11 AM
8 minute read
Hotel management agreements often contain language permitting a hotel owner to terminate if the hotel's performance fails to meet certain financial metrics. This provision, colloquially referred to as the "performance test," is touted as a form of protection for owners by providing a right to terminate (or to receive a "cure payment") if the hotel underperforms.
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