Operators typically charge a base fee calculated as a percentage of gross operating revenue, an incentive fee linked to gross operating profit or profit after an owner's priority return, and a range of system charges for marketing, reservations, loyalty programmes, training and technology. Some also charge technical services and pre-opening fees. The exact levels are commercial, but the definitions matter most, because small drafting choices can shift large sums. We review how revenue, deductions and reimbursable costs are defined and whether the fee structure can be remitted from Bangladesh as drafted.

Only if the agreement provides for it, or if there is a serious breach. Most hotel management agreements include a performance test that compares the hotel's results with budget and with a competitive set over two consecutive years, with the operator able to cure by paying the shortfall. Some exclude periods of force majeure or major disruption. Terminating without a contractual right can expose the owner to substantial damages. We assess the test, the evidence and the cure rights, and advise on negotiation, formal notices and the realistic outcome in arbitration.

Payments to foreign operators and brand owners must comply with foreign exchange rules, which distinguish between fee types and may require supporting agreements, tax clearance and approval or registration. Following the 2026 merger, the investment-related approvals once handled by BIDA are now dealt with by Invest Bangladesh, while banks and Bangladesh Bank apply the foreign exchange framework. Remittance can be delayed where documents are incomplete. We prepare the structure and paperwork in advance and advise on what happens to fees that cannot be remitted promptly. Delays can strain the relationship quickly.

A branded residence is a residential development, often next to or within a hotel, that is marketed and serviced under a hotel brand. In Bangladesh, the developer must comply with the Real Estate Development and Management Act 2010, building and planning approvals and the rules on registering apartment ownership. Buyers sign sale contracts with the developer, while the brand licenses its name and may provide services through a separate management agreement. We structure the documents so that each party's obligations to buyers are clear and enforceable. Each hotel management link must be disclosed.

This is one of the most important questions for buyers and lenders. If the brand licence or hotel management agreement is terminated, the brand may require removal of its name and stop providing services, which can affect the value of the apartments. Well-drafted documents deal with this through minimum licence periods, transition arrangements, step-in rights for the owners' association and clear disclosure in sale contracts. We advise developers and brands on how to manage this risk, and buyers' representatives on what protection they should seek. Buyers should request the licence term and termination provisions before paying any deposit.

In most hotel management structures in Bangladesh, the owning company employs the staff, while the operator manages them and seconds senior expatriate managers. This means the owner bears liability under the Labour Act 2006, including termination benefits, provident fund and gratuity arrangements, and responsibility for industrial relations. The agreement should give the owner suitable information and approval rights over staffing and redundancy. We advise both sides on employment structure, work permits for expatriate managers and how employment liabilities are handled when an operator leaves. Clear allocation avoids later disputes.

A new hotel usually needs registration and licensing under the Bangladesh Hotel and Restaurant Act 2014, a trade licence from the local authority, fire safety clearance, environmental clearance where applicable, occupancy and building approvals, and tax and VAT registration. Bars require separate liquor licensing under narcotics control law. Star classification has its own process. Timing matters, because the operator will not open without key approvals. We prepare a licensing plan tied to the pre-opening schedule and allocate responsibility clearly between owner and operator in the hotel management agreement. Applications should therefore start well before construction ends.

Most international agreements provide for negotiation, expert determination for financial or technical questions such as budgets and fee calculations, and then arbitration, often in Singapore, London or Dubai. Owners may also seek interim relief in Bangladesh courts to protect the property, bank accounts or records. Because operators and owners often need to keep working together, early structured negotiation is often the best route. We advise on dispute clauses at the drafting stage and, when a dispute arises, on strategy, evidence, interim relief and enforcement of any award in Bangladesh. Keep budgets and notices organised to evidence claims.