All posts filed under: Research

Punitive Damages 3 of 3

Part Three in a Three-Part Series PUNITIVE DAMAGES AFFILIATED WITH HOTEL MANAGEMENT AGREEMENTS A Case Study of Agency Law, Hotel Management Agreements, and Punitive Damage Awards Citing the Cases of 2660 Woodley Road Joint Venture v. ITT Sheraton Corporation v. P.T. Karang Mas Sejahtera v. Marriott International Inc., et al By Meg McDonough March 2008 President, Luxury Hospitality Consultants, LLC The next case that will be discussed is 2660 Woodley Road Joint Venture v. ITT Sheraton Corporation (villanova.edu). This case is unique in that it involved the owner’s use of the agency relationship to sue for breach of fiduciary duties and other torts. This case is also unique in that it was a jury trial that resulted in a substantial damage award. Sheraton Operating Corporation, a wholly-owned subsidiary of ITT, had managed the hotel on behalf of Woodley Road (owner) since 1979. In return for its management services, Sheraton was to receive compensation based on a percentage of the gross revenues plus a percentage of net cash flow as an incentive fee. The management contract was …

Punitive Damages 2 of 3

Part Two in a Three-Part Series PUNITIVE DAMAGES AFFILIATED WITH HOTEL MANAGEMENT AGREEMENTS   A Case Study of Agency Law, Hotel Management Agreements, and Punitive Damage Awards Citing the Cases of Pacific Landmark Hotel, Ltd. v. Marriott Hotels, Inc. v Government Guarantee Fund of the Republic of Finland v. Hyatt Corporation By Meg McDonough March 2008 President, Luxury Hospitality Consultants, LLC The next case discussed is Pacific Landmark Hotel, Ltd. v. Marriott Hotels, Inc. [Renard and Kristi]. This case is unique in that the management agreement specifically stated that Marriott’s agency was “coupled with an interest and may not be terminated by owner until the expiration of the term of the agreements.” The stated term of the management agreement was sixty years. At about the same time that the management agreements were put in place, the owners of the hotel secured loans with several of Marriott’s subsidiaries totaling approximately $23 million. The lenders secured these loans by deeds of trust and collateral assignments of the management agreements. In effect, the security for these loan transactions …

Punitive Damages 1 of 3

Part One in a Three-Part Series  PUNITIVE DAMAGES AFFILIATED WITH HOTEL MANAGEMENT AGREEMENTS    A Case Study of Agency Law, Hotel Management Agreements, and Punitive Damage Awards Citing the Cases of Woolley v. Embassy Suites March 2008 By Meg McDonough President, Luxury Hospitality Consultants, LLC In February 2008 Jim Butler, Hotel Lawyer and Author of http://www.HotelLawBlog.com, examined the legal intricacies in a breach of contract lawsuit involving the Ritz-Carlton Bali Hotel and the Four Seasons Resort on Bali. It’s an interesting case and one which illustrates the impact of hotel management agreements, contractual obligations, and the fiduciary duties of hotel management companies. As part of my certification in Hotel Management (University of South Florida – Sarasota), I wrote the following case study on hospitality law as it affected not only the above-noted parties but also others with somewhat similar outcomes vis-à-vis punitive damages. The final outcome fell on how the courts interpreted management agreements as agency agreements and applying applicable agency law. First of all, is the discussion of the court’s interpretation of management agreements …

Point of View

Seeking to Develop an Independent Boutique Hotel Collection I started my project with the simplest observation I could make and that was by viewing and experiencing the appeal of resort-style hospitality here in Sarasota, Florida. Our town definitely offers a little bit of paradise for every type of visitor – national and international – and I felt there was sufficient opportunity to appeal to this audience. In addition to adhering to the real estate adage “location, location, location,” I was determined to include “variety and diversity” in the types of foods we would offer. Our on-site signature restaurant would have met the location requisite; however, in order to assume we could also provide variety and diversity within the F&B operations, I was compelled to take our hotel culture to the next level beyond the formal service available to our specialty dining and private club. We tested our concept at a local private country club to observe and retrain our thinking about what it was our patrons might want that was different yet convivial. We found …

HRB News Today

Hotel, Restaurant & Bar News Kerfuffle in the Kitchen On April 1, 2013, in Boutique Hotels, effective marketing, kitchen, motivation, public relations, restfinance.com, by Meg McDonough Volunteering to service outside of one’s ordinary station, regardless of managerial hierarchy is called “Snap”. Stormy Weather Plans On March 26, 2013, in Banquet & Catering, Catering Kitchen, Emergency Kitchen Plans, kitchen, restfinance.com, SOP Storm Plans, by Meg McDonough During a “big storm” the dining event may well be your most important role – and the most appreciated and memorable experience your guests will ever encounter.  Don’t Follow the Lemmings Over This Fiscal Cliff  On February 7, 2013, in Cyber critiques, Management, managerial leadership qualities, People & Productivity, by Meg McDonough “Get it right the first time” should be the motto across the board. When repeat poor service occurs, it just lowers the standards and morale of the operations and, not surprisingly, the business suffers.  Focus on the Focus Group Surveys On February 5, 2013, in Boutique Hotels, focus group, Management, monitoring quality, restfinance.com, Surveys, by Meg McDonough Demand to be the best and demonstrate your willingness to change for the best and experience improvement in your F&B operations. Guard Your …

Sarasota Herald-Tribune

Business Weekly Announcements . Editorials   Bubil: Always a place for good architecture Sunday, March 17, 2013 Indian Beach Tale    By Harold Bubil, Herald-Tribune My March 8 story about the architectural competition to design a residence for a 5-acre property along the north bay in Indian Beach elicited several interesting reader responses. One reader asked if I knew the property was right next door to the mansion-for-rent that I profiled that day on page 1A. Yes, I knew that. Coincidentally, those stories ran the same day. Meg McDonough, president of Luxury Hospitality Consultants LLC in Sarasota, also opined that the competition was nothing more than a publicity stunt. Of course it is, but I can’t offer that opinion in a news story. “Interesting idea, but I would not hold much hope of getting a decent design from an architecture student,” wrote McDonough. “From what I see in the professional architecture magazines, they seem to teach them to have far-out ideas and a lot of nothingness that cannot be built. “This particular angle appears to be more about …