Hospitality Experience
Expert Advice for Management Company in Arbitration
Horwath HTL provided expert advice, representing the management company in an arbitration (Jakarta), taken by a disgruntled unit owner (condotel) that believed the management company was underperforming.
Project Scope
Horwath HTL was engaged to provide expert advice and support to a management company involved in an arbitration case in Jakarta. The dispute arose from a disgruntled unit owner within a condotel development who alleged that the management company was underperforming and failing to meet contractual obligations.
Our role involved a thorough analysis of the management company’s operational performance, including a review of the financial records, occupancy levels, revenue generation, and adherence to contractual agreements. This assessment focused on benchmarking the property’s performance against industry standards and similar condotel operations within the region to establish whether the management company’s actions aligned with reasonable expectations and market conditions.
Horwath HTL conducted an in-depth review of the management contract, identifying key terms, deliverables, and performance metrics outlined in the agreement. Special attention was paid to clauses related to operational benchmarks, revenue-sharing structures, and the responsibilities of both the management company and the unit owners.
In addition to performance analysis, we examined external factors such as market fluctuations, economic conditions, and the impact of broader trends within the hospitality industry that could have influenced the property’s performance. These insights were critical in providing a balanced and objective perspective to the arbitration proceedings.
Our expert advice included the preparation of detailed reports, expert witness testimony, and strategic recommendations to support the management company’s case.
The arbitration outcome benefited from Horwath HTL’s impartial and data-driven approach, helping to clarify the responsibilities and limitations of the management company while addressing the concerns of the unit owner. This engagement underscored Horwath HTL’s ability to provide critical expertise in resolving complex disputes within the hospitality sector.