14th Jul 2015
Hotel concession contracts in California can be a very valuable asset for most companies. For those of you who are not sure what hotel concession contracts in California entail, they are basically very unique legal devices that are significantly different from your typical hotel development contract. The first difference between hotel concession contracts and hotel development contracts is the fact that there are some very specific restrictions placed on concession contracts that are not common in other types of contracts. For example, in National Parks where the park is closed during a specific season, concessions are also typically closed during this off-season, despite the fact that the business might be able to handle demand all year long. Similarly, the National Park Service may have approval rights over maximum prices charged by the concessioner for certain services, such as guest room rental. Companies have to take these facts into consideration before deciding on whether or not pursuing a contract is feasible.
These unusual operating constraints present a very unique challenge for companies trying to secure hotel concession contracts, and this is also why these contracts have become such a valuable asset. A hotel concession can guarantee a certain amount of guests, revenue and good publicity for the company. However, securing –and maintaining- these contracts is not always an easy task; this is where a hotel concession consultant comes in. A consultant with this very specialized expertise and the degree of experience required to handle issues such as a public bidding process and the inevitable challenges that come with such a complicated affair can be invaluable to a potential concessioner.
As we all know, the National Park system prides itself in maintaining the purity and sanctity of its National Parks, which is why the expertise and experience of a highly skilled consultant can make the difference when it comes to securing a hotel concession contract. Knowing how to bid on these periodic competitions require the correct amount of knowledge in order to make sure that your valuable resources and time do not go to waste. And since some of the contracts are for 15-year periods or more, these contracts can be a very valuable asset for the concessioner.