How should foreign investors negotiate penalty clauses in hotel contracts?

We are a Chinese asset management company investing in several hotels that we are managing at a distance. However, we want to protect our investments. If the hotel runs over budget, we want to make sure to penalize that scenario. What are our options for doing that?

Answers

On Robert J. Ivanhoe answered:

If you are dealing with a major brand as manager, there is not much you can do. There is more ability to negotiate a bit better protections with an independent unbranded manager.