Hotel Lawyer Marta Fernandez: Thinking about closing your hotel? The Labor Pains of Hotel Closings Optimal Strategies for Full or Partial Hotel Closings!
For the most recent update on this topic, click here
By Marta Fernandez and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
15 March 2006
Closing hotels and hotel closings
Hotel closings are hitting record levels, but now it is for all the right reasons! Unlike closings caused by the "great real estate depression" of the early 1990s, hotels are closing today for positive reasons: major rehab and construction projects, conversions to condo hotel or residential condos and expansion. Hotel developers and owners are finding that construction is often so extensive that it is advisable to close the hotel while the work is being performed. But, you should not make the decision to close without first consulting with your labor counsel to consider the labor and employment implications, and determining the optimal strategies for your situation.
[By the way, hotels also close because of financial difficulties, but that is a different problem for another article. Those issues are also very important. For example, see Closing that hotel may be the worst money-saving idea you ever had! Lenders, here's why mothballing a hotel can be a very bad idea.]