Hospitality Experience

Management Contract Negotiation for Metropolo Hotel

Horwath HTL was instructed on a negotiation of management contract for the first Metropolo Hotel (LHG) in Europe.

Project Scope

We were engaged to assist in the negotiation of a management contract for the Metropolo Hotel in Kraków. The project aimed to secure terms that aligned with the client’s strategic objectives while ensuring operational and financial success for the property.

Our approach began with a thorough review of the proposed contract terms, focusing on key areas such as management fees, performance benchmarks, owner obligations, and termination clauses. This analysis provided a clear understanding of the implications of each term on the hotel’s profitability and operational autonomy.

To support the negotiation process, we conducted a detailed benchmarking exercise, comparing the proposed terms to industry standards and similar agreements in the region. This ensured that our recommendations were grounded in current market practices and tailored to the specific context of the Kraków hospitality market.

We worked closely with the client to identify priorities and develop a negotiation strategy that balanced their short-term goals with long-term objectives. This included structuring fee arrangements that incentivised performance, introducing clear accountability measures, and ensuring sufficient flexibility to adapt to market changes.

Throughout the negotiation process, we facilitated discussions with the management company, providing expertise on complex contractual elements and advocating for terms that protected the client’s interests. Our role included drafting revisions, proposing alternative solutions, and mediating discussions to achieve a mutually beneficial agreement.

The final contract secured terms that supported the Metropolo Hotel’s operational and financial success while maintaining alignment with the client’s overarching business strategy. Our involvement ensured that the negotiation process was efficient, informed, and resulted in a contract that positioned the property for long-term growth in Kraków’s competitive hospitality market.