This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via Google Scholar Google Scholar Articles by Wilson, R. H. Search for Related Content Social Bookmarking                   What's this?

Agency Law, Fiduciary Duties, and Hotel Management Contracts

University of Massachusetts, rwilson{at}hrta.umass.edu

A series of recent court cases have given hotel owners the power (although not necessarily the right) to terminate hotel management contracts, with or without cause. The courts have also affirmed the existence of a principal-agent relationship in hotel management contracts. Future court decisions involving hotel management contracts will apply traditional agency law, and will impose a fiduciary duty on the hotel operator as set out in the Restatement (Second) of Agency (1958). In one case recently, a jury awarded $57 million to the hotel owner because the hotel operator did not disclose hidden profits and kickbacks and breached its fiduciary duties.

Key Words: hotel management contracts • agency law • fiduciary duty • termination

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?