Managing Partner William Brewer wrote an article for Hotel Business Review published on July 26, 2020, titled “History Lesson: Owners and Management Companies Weigh Responsibilities and Risks in Response to COVID-19.”
In part, Brewer writes: “Today, the chain brand hotel companies (e.g., Marriott, Hilton, IHG, etc.) represent 69% of the rooms in supply. They do so through a variety of brands, spread over different price strata, offering different levels of facilities and services to their guests. Although the traveling public may not realize it, the brands rarely own any of the hotels within their 'chain' of distribution. Rather, the owner of the hotel is either a licensee or the principal who has contracted for the asset to be managed by the brand. This was not always so.”
Amidst the coronavirus pandemic, Brewer writes that, "In times of uncertainty, the fiduciary obligations of every hotel operator should take on increased significance. As the pandemic continues to wreak economic havoc globally, and with a possible continued recession around the corner, hotel operators have a legal responsibility to their owners to give immediate attention to particular issues that may arise over the course of the hotel's operation and management. A failure to uphold these duties may result in an owner's loss of trust and confidence in the operator's management, and operators who breach their fiduciary duties will entitle owners to terminate their hotel management agreements with immediate effect."
Brewer is a frequent contributor to Hotel Business Review, and serves as featured “guest author” of the publication. Visit the publication and most recent article here.