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  • July 22, 2015

Termination of Hotel Management Agreements Under Maryland Law

During the course of negotiating an agreement between the owner of a hotel and a hotel operator, franchisor, or manager, one of the principal points of negotiation is the agreement’s term.  Over the course of the last few decades, however, numerous cases have held that, without regard to the term set forth in the agreement, a hotel owner always maintains the right to terminate a management agreement, even in the absence of a breach of the agreement by the manager.  These cases, however, may not be applicable in Maryland, which has a unique statute that provides hotel managers and operators…

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