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Hotel Lawyers -- featured subjects and articles
Meet the Money® 2014

ADA defense and compliance

EB-5 financing

Workouts, bankruptcies & receiverships

Hotel Management Agreements

Hotel Franchise & License Agreements

Hotel industry trends

This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer. Please contact me at Jim Butler at jbutler@jmbm.com or 310.201.3526.

Published on:

14 July 2025
See how JMBM’s Global Hospitality Group® can help you.

One Big Beautiful Bill Act – Key Tax Provisions

by JMBM’s Taxation and Trusts & Estates Department

 

The One Big Beautiful Bill Act (“OBBB”) was signed into law on July 4th, 2025, ushering in sweeping changes to the U.S. federal tax landscape. The OBBB permanently extends and expands many provisions of the Tax Cuts and Jobs Act (“TCJA”), and introduces significant updates that will impact both individuals and businesses. The following are among the more notable provisions in the OBBB.

Income Tax Rates

The OBBB permanently extends the reduced individual income tax rates and brackets originally enacted by the 2017 TCJA, which were previously set to expire after 2025.
Taxpayers will continue to benefit from the lower income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Estate, Gift, and Generation-Skipping Transfer Tax Exemption

The OBBB permanently raises the federal estate, gift and generation-skipping transfer tax exemption to $15 million per individual (or $30 million for married couples), effective for estates of individuals and gifts made after Dec. 31, 2025. This exemption amount will continue to be indexed for inflation in future years.

SALT Deduction and Passthrough Entity Tax

The OBBB temporarily raises the cap on the state and local tax (“SALT”) deduction from $10,000 to $40,000 for 2025, with the cap increasing by 1% annually through 2029. Starting in 2030, the cap reverts to $10,000. However, for taxpayers with modified adjusted gross income over $500,000, the available SALT deduction phases down by 30% of the excess income, but never below $10,000 (with the threshold amount also increasing by 1% annually through 2029). CONTINUE READING →

Published on:

11 July 2025

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on ADA Compliance and Defense.

Reprinted with permission from the ADA Compliance and Defense Blog

For small business owners, facing an Americans with Disabilities Act (ADA) lawsuit can feel like an uphill battle. These lawsuits often allege accessibility violations, and the costs of litigation can be daunting, even for businesses striving to comply with ADA regulations. However, a recent victory in the case of Orlando Garcia v. Zarco Hotels Inc. (Case No. 21STCV00023), defended by Stuart Tubis, Esq. and Martin Orlick, Esq., provides a roadmap for defendant businesses to not only fight these lawsuits but also recover significant attorneys’ fees when they prevail. It takes the right facts, the right lawyer and a genuine commitment to fight for what is right.

The Case: Orlando Garcia v. Zarco Hotels Inc.

JMBM previously reported a successful defense against an ADA lawsuit brought by plaintiff Orlando Garcia in which Garcia alleged that the Hollywood Hotel’s reservation requirements failed to comply with the ADA because the website did not provide enough information about the physical accessibility features of the hotel. Defendant Zarco Hotels found the claims meritless and committed to defending the case on the merits. Zarco Hotels prevailed, and the Court ordered Garcia to pay Zarco Hotels $57,604.90 on July 11, 2023.

Garcia appealed this decision, but Zarco Hotels won the appeal, again represented by Stuart Tubis, Esq. and Martin Orlick, Esq. So Zarco Hotels filed a motion to recover the attorneys’ fees it incurred on appeal. On June 20, 2025, the Superior Court of California adopted its tentative ruling as final and awarded Zarco Hotels an additional $84,980.00 in attorneys’ fees incurred defending against Garcia’s frivolous appeal for a total recovery of $142,584.90.

The plaintiff opposed the fee request, arguing that the defendant’s billing records were unreasonable. Despite this opposition, the court found the defendant’s fee request to be justified, highlighting that businesses can recover reasonable attorneys’ fees when they successfully defend against ADA claims that are meritless or frivolous. This recovery can specifically include fees incurred defending an appeal. Garcia is personally responsible for payment to Zarco Hotels.

Key Takeaways for Businesses Facing ADA Lawsuits

The Garcia v. Zarco Hotels case underscores several critical points for businesses navigating ADA litigation:

  1. Vigorous Defense Can Lead to Victory: The court’s decision to award $142,584 to Zarco Hotels demonstrates that businesses can successfully defend against ADA lawsuits. By presenting a robust defense, businesses may not only defeat the claims but also position themselves to recover litigation costs. While smaller businesses may not opt for a vigorous and prolonged defense, larger businesses or those with a litigation budget should consider this option.
  2. Recovering Attorneys’ Fees: Under certain circumstances, defendants in ADA lawsuits can seek attorneys’ fees if the plaintiff’s claims are found to be frivolous, unreasonable, or without foundation. The court’s approval of fees, including a detailed breakdown for JMBM’s work, shows that courts are willing to award substantial amounts when the defendant’s legal efforts are justified.
  3. Challenging Plaintiff’s Billing Arguments: In this case, the plaintiff argued that the defendant’s billing records were unreasonable, citing hours not included in a previous version of the motion. However, the court rejected this argument, suggesting that businesses should meticulously document their legal expenses and be prepared to justify them. Clear, detailed billing records can strengthen a defendant’s position when seeking fee awards.
  4. Strategic Litigation Matters: The ruling highlights the importance of strategic litigation. Businesses should work with experienced ADA defense attorneys to assess the merits of the plaintiff’s claims early in the process. If the claims lack substance, pursuing a defense that challenges the plaintiff’s case can lead to a favorable outcome, including the possibility of fee recovery.

CONTINUE READING →

Published on:

 

Jim Butler and Guy Maisnik will be speaking at the 2025 Boutique Hotel Investment Conference on June 4, 2025.

Jim will be on a panel titled Redefining Invest in Boutique and Luxury Hotels from 10:40 am – 11:10 am.
This panel will bring together leading investors and developers who are rethinking how capital is deployed across independent, boutique, and luxury hospitality projects. From creative deal structures and adaptive reuse to aligning brand authenticity with investor returns, this session will explore the new metrics of success in a space where character and capital must coexist. Learn how today’s leaders are approaching growth, risk, and value creation in a rapidly transforming landscape.

Guy will be on a panel titled Deal Structuring in a Complex Market from 11:10 am – 11:30 am.
This panel features seasoned advisors who will share expertise on topics such as leverage levels, pricing dynamics, and risk mitigation strategies. Attendees will learn about the complexities of boutique deal-making, including how to navigate challenging market conditions, align with partner expectations, and secure investment without compromising the brand’s boutique integrity. This session will provide actionable strategies for crafting deals that support both growth and independence in a competitive environment.

View the full agenda: 2025 BHIC Agenda

Contact us to discuss how we can help.


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Jim Butler:
+1-310-201-3526
jbutler@jmbm.com

 


Guy Maisnik:photo__2885699_guy-maisnik-web1-300x300
+1-310-201-3588
GMaisnik@jmbm.com

 


View the links below for our services: 

Advising Hotel Operators and Brands – ALLA
How We Help With Hospitality – ALLA

Published on:

This rule does apply to all states, and it is hoped that this will set a national standard instead of a patchwork of varying state regulation.

After many years of study and  proposals, the Federal Trade Commission (FTC) has finally adopted its Rule on Unfair or Deceptive Fees, or junk fees, which takes effect on May 12, 2025.

The rule prohibits bait-and-switch pricing and other tactics used to hide total prices and mislead people about fees in the live-event ticketing and short-term lodging industries. The rule also furthers President Trump’s Executive Order on Combating Unfair Practices in the Live Entertainment Market by ensuring price transparency at all stages of the live-event ticket-purchase process, including the secondary ticketing market.

The FTC has been critically looking at “junk fees” for a long time. Over several years, it proposed banning “Unfair or Deceptive  Fees” across many industries. However, on Dec.17, 2024, the FTC surprised many when it published a significantly revised version as its final “Junk Fees Rule” (16 CFR Part 464). The rule was scheduled to become effective 120 days after its publication in the Federal Register. See related blog, “Junk Fees: FTC finally adopts the Final Junk Fees Rule but with focus on Hotels, Short-Term Lodging & Live Event Ticket Sales.”

The FTC published Frequently Asked Questions to provide consumers and businesses with information regarding the agency’s rule.

NOTE: We represent the owners and operators of hotels, restaurants, and other hospitality facilities. We do not represent consumers making claims against such businesses. When it comes to junk fee laws at the state or national level, we help the owners and operators of hotels, restaurants, and hospitality facilities understand and comply with them. When claims are made against them by consumers or competitors, we advise on strategies and defense of such claims.

See previous articles:

Junk Fees: FTC finally adopts the Final Junk Fees Rule but with focus on Hotels, Short-Term Lodging & Live Event Ticket Sales

Hotel News Now Podcast: California ‘Junk Fees’ Laws Another Step in Hotels’ Pricing Transparency Journey

California Junk Fee Law Compliance & Defense – What You Need to Know to Avoid Costly Litigation

Good morning, America! It is July 1, 2024, and California’s new Junk Fee Law now has world-wide effect. Here’s what you need to know to avoid costly litigation.

Hotel Lawyer: New Federal Junk Fee Law – The No Hidden FEES Act of 2023 (HR 6543)

Published on:

The 32nd edition of Meet the Money® national hotel finance and investment conference was held May 5-7 at the Los Angeles Airport Marriott. Some of the insightful presentations included observations on the current economy, insurance and investment advice tailored for hospitality, boutique hotel investment patterns, the Lodging Industry Investment Council’s Top 10, and the state of the hospitality industry in 2025.

To download these presentations, please go to www.hotellawyer.com where you will find these under the RESOURCE CENTER tab of the website, and then scroll down and select “Hotel Industry Publications.”

Navigating Uncertainty & Volatility: Daniel Lesser, Co-Founder, President, CEO of LW Hospitality Advisors examines the strengths, weaknesses, opportunities and threats for the U.S. Hotel Industry in 2025.

State of the US Hotel Industry Unpacking Key Performance Drivers: Michael Stathokostopoulos, Senior Director of Hospitality Analytics of CoStar Group provides an overview of the current state of the US hotel industry, focusing on key factors that impact performance. It examines trends, challenges, and opportunities shaping the sector.

LIIC Top Ten: Mike Cahill, CHA – CEO and Founder of HREC Investment Advisors presents the 2025 Lodging Industry Investment Counsel (LIIC) Top Ten which reveals the challenges and investment trends identified through an annual survey of LIIC members.

Unlocking Value: Strategic Equity Structuring to Maximize ROI: Kyle Yantz, Senior Manager of CohnReznick LLP explores strategic equity structuring techniques to maximize return on investment (ROI). It highlights key approaches to unlocking value in various market conditions.

Lodging Performance Outlook: Our Outlook of Performance and Headwinds to Consider: Luigi Major, Managing Director, Advisory of HVS gives an update on hotel performance, valuation metrics and construction costs for 2025.

Economic Update: Paul Single, Senior Economist, Senior Portfolio Manager, Managing Director of City National Rochdale gives an overview of current economy and shares CNR’s economic outlook.

About Meet the Money®

For over 30 years, Meet the Money® has created an energetic environment to forge relationships, negotiate deals, and gain an in-depth understanding of hotel investment and finance. Our national hotel conference attracts heavy hitters and offers an opportunity for productive, one-on-one networking with them.


Picture of Jim Butler

This is Jim Butler, author of www.HotelLawBlog.com and founding partner of JMBM and JMBM’s Global Hospitality Group®. We provide business and legal advice to hotel owners, developers, independent operators, and investors. This advice covers critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. We also have compelling experience in hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.

JMBM’s Global Hospitality Group® has been involved in more than $125 billion of hotel transactions and more than 4,700 hotel properties located around the globe. Contact me at +1-310-201-3526 or jbutler@jmbm.com to discuss how we can help.


How can we help? Brochure Credentials Photo Gallery

Published on:

Today at JMBM’s Meet the Money® national hotel finance conference, The Lodging Industry Investment Council (“LIIC”) released its much-anticipated LIIC Top Ten – the 2025 update of its an annual survey of investment sentiment survey.

LIIC — The lodging industry think tank

For the past 20 years, the members of the hotel industry’s preeminent think tank, “LIIC – The Lodging Industry Investment Council,” are annually surveyed to develop a list of the major hotel investment opportunities and challenges for the coming year. This exhaustive survey results in the LIIC Top Ten, a highly regarded profile of investment sentiment and attitudes for the lodging industry for the forthcoming 12 months. Altogether, the members of LIIC represent direct acquisition and disposition control of well over $60 billion of lodging real estate.

The hospitality industry’s leading influential investors, lenders, corporate real estate executives, REITs, public hotel companies, brokers and significant lodging equity sources are represented on the Council. LIIC serves as the leading industry think tank for the lodging real estate business.

Mike Cahill, LIIC co-chairman, produced this year’s survey. Mr. Cahill is CEO and Founder of HREC – Hospitality Real Estate Counselors, a leading international hotel and casino brokerage and advisory firm (24 offices nationwide) specializing in lodging property sales, debt financing and consulting. George Davis and Olivia Brenner, Associates in HREC’s Denver office, assisted throughout the process.

LIIC Top Ten

  1. Hotel Property Investment – Cautiously optimistic, business as usual; yet clouded by uncertainty of eventual impact of Trump Administration
  2. Greatest Four Threats to Your Hotel Investment
  3. Hotel Cap Rates and Transactions Market
  4. Hotel Debt Situation Improving
  5. Investors Still Want to Purchase Hotels
  6. What Do Lodging Investors Want?
  7. Hotel Buyers Finding Suitable Product
  8. Where to Buy a hotel
  9. Impact of Trump Tariffs
  10. Hotel Guestroom Demand

You can download the full presentation here.

About Meet the Money®

For over 30 years, Meet the Money® has created an energetic environment to forge relationships, negotiate deals, and gain an in-depth understanding of hotel investment and finance. Our national hotel conference attracts heavy hitters and offers an opportunity for productive, one-on-one networking with them

Published on:

Today at Meet the Money® 2025, Ben Rafter announced that Hotel Equities and Springboard Hospitality formed a strategic merger in which Ben will serve as the new chief executive officer of the combined company, effective May 1, 2025.

“I expect that Ben’s experience both growing companies and generating hotel revenues will be a huge asset for Hotel Equities,” said David Sudeck, Co-Chair of JMBM’s Global Hospitality Group. “Ben will bring Springboard’s entrepreneurial approach and independent hotel management expertise to Hotel Equities, which is known for its strength as a leading branded hotel operator. We congratulate Ben on this new role and look forward to seeing all that he will accomplish.”

Read the full Hotel Equity and Springboard press release.

Published on:

Los Angeles, CA, May 5, 2025 – Jeffer Mangels Butler & Mitchell LLP (JMBM) proudly announces that David Sudeck has been named as Co-Chair of the Firm’s Global Hospitality Group®, effective immediately. Jim Butler, the group’s Chair, and Guy Maisnik, its Vice Chair, will celebrate the promotion and congratulate David on the formal acknowledgement at Meet the Money® on May 5, 2025.

David brings two decades of experience in hospitality law, real estate, and business transactions to this leadership role. He has been with JMBM for 17 years and has played an integral part in the success and growth of the Global Hospitality Group®. His extensive experience includes hotel, resort, golf and spa management agreements, franchise agreements, and finance agreements (with a special focus on construction financing, C-PACE financing, and EB-5 financing). His background as a broker and developer has provided him with a unique perspective that blends technical legal excellence with practical, real-world business acumen.

“I have spent years working alongside the senior leadership team, and I deeply appreciate the opportunity to continue building on the strong foundation that Jim Butler and Guy Maisnik have established over the years,” Sudeck said.

“David has tremendous energy and is a great people connector,” Butler said. “His leadership, industry knowledge, and technical skills will ensure that we continue to provide top-tier service to our clients.”

Maisnik added, “This new position for David recognizes the contributions and leadership David has been providing for clients and the industry for many years.”

Published on:

26 April 2025

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Hospitality Dispute Resolution.

 

New California Supreme Court Decision Impacts Hotel Management Agreements:

Limitations on Damages for Intentional Wrongdoing Are Now Invalid

by

Mark S. Adams, Hotel Consigliere
Partner & Senior Member
JMBM’s Global Hospitality Group®

On April 24, 2025, the California Supreme Court issued a major decision in New England Country Foods, LLC v. VanLaw Food Products, Inc., clarifying that parties cannot use contract clauses to limit liability for intentional wrongdoing.

Under Civil Code section 1668, any attempt to restrict damages for willful injury — including breaches of fiduciary duty — is invalid as a matter of public policy, even between sophisticated commercial parties.

The decision is especially significant for hotel Owners and Management Companies, whose relationship often combines both contractual obligations and fiduciary duties. The decision requires Owners and Managers alike to rethink their approach both to drafting hotel management agreements’ (“HMAs”) limitation of liability clauses, and litigation strategies when disputes arise.

California Supreme Court Decision Impacts Hotel Management Agreements: Limitations on Damages for Intentional Wrongdoing Are Now Invalid

 Owner–Manager Relationships and Fiduciary Duties

In California and most jurisdictions, hotel Managers owe fiduciary duties to Owners, in addition to their contractual obligations. The fiduciary duty arises by operation of law, and despite disclaimers in the agreements, because:

  • The Manager controls the Owner’s property and financial operations,
  • The Manager acts as the Owner’s agent in dealings with third parties,
  • The Owner entrusts the Manager with discretionary authority over the hotel’s operations.

(Prickett v. Bonnier Corporation (2020) 55 Cal.App.5th 891, 901; Woolley v. Embassy Suites, Inc. (1991) 227 Cal.App.3d 1520; Pacific Landmark Hotel, Ltd. v. Marriott Hotels, Inc. (1993) 19 Cal.App.4th 615, modified, 19 Cal.App.4th 1552 (1993); Marriott Intern., Inc. v. Eden Roc, LLLP (N.Y. App. Div. 2013) 104 A.D.3d 583; FHR TB, LLC v. TB Isle Resort, LP. (S.D. Fla. 2011) 865 F.Supp.2d 1172.

Thus, even where the Management Agreement is carefully drafted, the law likely imposes independent fiduciary duties that cannot be waived by contract — including duties of loyalty, care, and disclosure.

Typical Damages Limitation Language Hotel Management Agreements

Many hotel management agreements contain broad limitations of liability, for example:

Limitation of Liability Clause:

“Notwithstanding any provision of this Agreement to the contrary, Manager shall not be liable to Owner for any consequential, indirect, incidental, special, exemplary, or punitive damages (including loss of profits or business interruption) arising out of or relating to Manager’s performance or failure to perform under this Agreement, regardless of the cause of action, even if advised of the possibility of such damages.”

Clauses like this are designed to cap the Manager’s exposure to damages arising from operational missteps or disputes; however, under the Supreme Court’s new decision, such clauses cannot be enforced to shield the Manager from damages resulting from willful misconduct or breaches of fiduciary duty.

When Breach of Contract May Also Be a Breach of Fiduciary Duty

The line between mere breach of contract and fiduciary breach is critical. If a Manager simply fails to meet operational standards — e.g., slow responses, minor budget overruns — the Owner’s remedy may be confined to contract damages, and typical damages limitations would apply; however, where the Manager’s conduct includes:

  • Self-dealing (g., favoring affiliates, steering business to related entities),
  • Bad faith (g., prioritizing short-term gains to boost incentive fees at the Owner’s long-term expense),
  • Gross mismanagement coupled with concealment, or
  • Systematic violations of Owner’s instructions or Owner’s interests,

The Owner may allege breach of fiduciary duty — an independent tort — triggering full tort remedies. In such cases, limitation of liability clauses would likely be invalid under Civ. Code, § 1668, as interpreted by New England Country Foods.

 

Key Takeaways for Hotel Owners and Managers

Hotel Owner Perspective Management Company Perspective
Damage limitations for intentional wrongs Cannot be used to shield the Manager from liability for breaches of fiduciary duty, fraud, or bad faith conduct. Exposure to full compensatory and potentially punitive damages where claims go beyond pure breach of contract.
Standard of conduct Alleging fiduciary breaches enhances remedies and invalidates contractual caps. Argue that claims are confined to pure contract breaches to maintain protection under limitations clauses.
Litigation strategy Plead independent fiduciary breach and/or intentional torts (e.g., interference with contractual relations, fraud). Focus defenses on economic loss rule, arguing conduct falls squarely within contract expectations.

 

Implications for Hotel Management Agreements CONTINUE READING →

Published on:

 

Meet the Money® is the gateway to hotel finance and investment opportunities. It is now less than one month away. In this interview, Jim Butler speaks about why this conference is is a must-attend event for hoteliers. [CLIC] Live show.

 


Picture of Jim Butler

This is Jim Butler, author of www.HotelLawBlog.com and founding partner of JMBM and JMBM’s Global Hospitality Group®. We provide business and legal advice to hotel owners, developers, independent operators, and investors. This advice covers critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. We also have compelling experience in hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.

JMBM’s Global Hospitality Group® has been involved in more than $125 billion of hotel transactions and more than 4,700 hotel properties located around the globe. Contact me at +1-310-201-3526 or jbutler@jmbm.com to discuss how we can help.


How can we help? Brochure Credentials Photo Gallery

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