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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.

« February 2007 | | April 2007 »
Posted On: March 22, 2007 by the JMBM Global Hospitality Group®

Hospitality Lawyer on "LIFESTYLE" hotel mixed-use development. Are Valencia and Miraval the new paradigms for "lifestyle" hotel mixed-use?

For the most recent update on this topic, click here

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
23 March 2007

Hospitality Lawyer on "LIFESTYLE" hotel mixed-use development. Hotel mixed-use has emerged as one of the few ways hotel developers may be able to make a new development economically feasible, with skyrocketing construction costs. It has also become one of the hottest things going as developers of other real estate uses (shopping centers, office, retail, residential and entertainment) discover the big "IRR Premiums" that may be harvested from well-planned and tightly integrated hotel mixed-use projects. (See, my earlier postings on www.HotelLawBlog.com from The Hotel Developers Conference® in Rancho Mirage. about how hotel mixed-use is the pass key to unlocking new development and bigger profits, and the perspectives of the most successful leaders in hotel mixed-use today)

Continue reading " Hospitality Lawyer on "LIFESTYLE" hotel mixed-use development. Are Valencia and Miraval the new paradigms for "lifestyle" hotel mixed-use? " »

Posted In: Hotel Developers Conference™ , Hotel Mixed-Use , Lifestyle Hotels , Outlook and Trends

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Posted On: March 21, 2007 by the JMBM Global Hospitality Group®

Hotel Lawyer on Green Hotel Development: Green hotel development is profitable now! Inspirations from the pioneers make it dangerous NOT to be "green"

For the most recent update on this topic, click here

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
21 March 2007

We have talked about a lot of important subjects here on www.HotelLawBlog.com, like hotel management agreements controlling the value of an asset (see "5 Milestones Marking The Road To Success For Hotel Management Agreements"), but I believe we may be on a new frontier where "GREEN" will be more important and faster than anyone ever imagined. It will be faster and better than Gore inventing the internet highway!!! With better results for all our lives and no less phenomenal growth.

Continue reading " Hotel Lawyer on Green Hotel Development: Green hotel development is profitable now! Inspirations from the pioneers make it dangerous NOT to be "green" " »

Posted In: Green Hotels , Hotel Developers Conference™

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Posted On: March 19, 2007 by the JMBM Global Hospitality Group®

Helping Owners Strike a Fair Deal: 5 Milestones Marking The Road To Success For Hotel Management Agreements

For the most recent update on this topic, click here

by Jim Butler and Robert Braun
19 March 2007

Keywords:

Hotel Operating Agreement, HOA, Hotel Management Agreement, HMA, Hotel Management Contract, Management Contract. Hotel Operator, Hotel Manager, Hotel Owner. RFP for Hotel Manager. RFP for Hotel Operator, How to get a great hotel operator.

Terminology

Contracts between hotel owners and managers (or operators) controlling the management of a hotel go by various names. They are called hotel management agreements, HMAs, hotel management contracts or hotel operating agreements. For convenient reference, this article will generally use the term "Hotel Management Agreement" or "HMA." However all these terms can be used interchangeably and mean the same thing, just as with hotel operator or hotel manager.

Whatever they are called, Hotel Management Agreements allocate risk between the hotel manager and the hotel owner. They are critical in determining the profitability and value of a hotel.


In order to consummate any substantial business transaction, there are inevitably some "challenges" to overcome. Hotel management agreements are no exception: in part because of their complexity, and in part because hotel management agreements typically transfer effective control over valuable assets for several decades, and their terms can easily enhance -- or diminish -- the value of hotel by a staggering amount.

Continue reading " Helping Owners Strike a Fair Deal: 5 Milestones Marking The Road To Success For Hotel Management Agreements " »

Posted In: Ask the Hotel Lawyer™ , Hotel Management Agreements , Hotel Mixed-Use

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Posted On: March 13, 2007 by the JMBM Global Hospitality Group®

"Hotel Mixed-Use" . . . pass key to unlocking new development and bigger profits?

For the most recent update on this topic, click here

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
13 March 2007

Hotel lawyer on hotel mixed-use development. "Hotel Mixed-Use" . . . and how it can be the pass key to unlocking both new development and bigger profits was the entire focus of The Hotel Developers Conference™ in Rancho Mirage. Creative ideas flowed and mixed. Nuggets of valuable insight were gathered. Introductions were made. Deals were done. The opening session of The Hotel Developers Conference™ was covered in my last posting on www.HotelLawBlog.com. And here's what happened in the second full day.

Continue reading " "Hotel Mixed-Use" . . . pass key to unlocking new development and bigger profits? " »

Posted In: Hotel Developers Conference™ , Hotel Mixed-Use , Outlook and Trends

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Posted On: March 7, 2007 by the JMBM Global Hospitality Group®

Hotel Lawyer Live from The Hotel Developers Conference ™ in Rancho Mirage.

For the most recent update on this topic, click here

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
7 March 2007

Veteran hotel developers, speaking at The Hotel Development Boot Camp - the pre-conference session of JMBM's Hotel Developers Conference™ -- recall the days when the hotel component of a mixed-use development was the "blood donor" of the project. Now, hotels are reaping profits in mixed-use environments and are viewed as essential components for infusing excitement into a mixed-use project. Indeed, mixed-use developers are wooing hotel developers in hopes of striking deals that will provide them with the means for providing a community hub for their projects.

Continue reading " Hotel Lawyer Live from The Hotel Developers Conference ™ in Rancho Mirage. " »

Posted In: Hotel Developers Conference™ , Lifestyle Hotels

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Posted On: March 6, 2007 by the JMBM Global Hospitality Group®

What's the price of gasoline have to do with the future of the lodging industry?

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
6 March 2007

Hotel lawyer on hotel industry trends. What's the price of gasoline have to do with the future of the lodging industry? Some pretty interesting research tells us "More than you might think"!

In a recent posting on www.HotelLawBlog, I talked about the intimate relationship between the U.S. economy and the lodging industry. You may recall that cited studies of the past 30 years show that for more than 24 years there was a remarkable statistical correlation of 1.2 between U.S. Real GDP and the demand for hotel room nights at hotel in the United States. That means that if the U.S. economy grew by 1%, then lodging demand (i.e. demand for hotel room nights) grew by 1.2%. And although the correlation is a little lower now (around .7), there is still a very strong correlation between the Real GDP and the lodging industry.. (For more details see, As goes the economy, so goes the hospitality industry -- the ineluctable elasticity of demand!)

I was quite surprised by the number of www.HotelLawBlog.com readers who sent me emails commenting on that recent blog. It is always nice to know that so many of you actually read these postings. But several of you wondered out loud -- or commented -- that you thought the cost of petroleum or perhaps some other items might also have a strong correlation with the lodging industry. As to the impact of petroleum prices, there is a strong correlation. As to other factors, there appears to be little or no correlation. So the price of gasoline actually does have a lot to do with the future of the lodging industry. How much impact? Let's take a look.

Continue reading " What's the price of gasoline have to do with the future of the lodging industry? " »

Posted In: Outlook and Trends

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Posted On: March 5, 2007 by the JMBM Global Hospitality Group®

Reggie Jackson Hotel, Conference Center and Baseball Hall of Fame?

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com

5 March 2007

In case you missed it, it has just been announced that former baseball star Reggie Jackson is the mystery developer of a proposed 252 room hotel and conference center in Seaside, California. At this point, Reggie joins a long line of celebrities and athletes jumping on the hotel mixed-use bandwagon we have covered here at www.HotelLawBlog.com. The band wagon already has many famous riders, including Bill Gates and Prince Al Waleed, Blackstone, Morgan Stanley in its acquisition of CNL Hotels & Resorts, Barry Sternlicht on his investments in China and India, as well as his launch of new brands such as the "1" and the Crillon, Paul Allen, Shaquille O'Neal, Donald Trump, Magic Johnson, Andre Agassi and Steffi Graf?

Why is this important and why should we care?

Continue reading " Reggie Jackson Hotel, Conference Center and Baseball Hall of Fame? " »

Posted In: Hotel Developers Conference™ , Hotel Mixed-Use

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Posted On: March 4, 2007 by the JMBM Global Hospitality Group®

A billion here, a billion there. (Ho Hum) Isn't it time we developed some hotels again? Will we get it right this time? Will Hotel-Enhanced Mixed-Use projects drive the market?

For the most recent update on this topic, click here

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com

4 March 2007

Hotel lawyer on hotel and hotel mixed-use development. Wasn't it only "yesterday" that a few hundred million dollars seemed like a lot of money and made the headlines? After Blackstone's $39 billion purchase of Equity Office Properties deal was topped in deal size by Kohlberg Kravis Roberts' bid for Texas Pacific Group (TXU) for about $45 billion, it almost seems like everyone yawns at "mere" billion dollar deals, much less something smaller. For example, did you notice any major headlines in the past couple of weeks about Winston Hotels being bought by Wilbur Investment for $850 million, or Apple Hospitality being bought by ING Clarion Partners for $890 million, or Hilton selling its Scandic Hotel chain to a private equity group for about $1.1 billion?

Nobody I know was particularly excited about these deals despite their size, which would have claimed headlines only a year ago. As I have commented before on www.HotelLawBlog.com, it really does seem that "Size no longer matters . . . at least in the hotel industry."

But what does the big dollar focus on hospitality mean from private equity and celebrities-- as we have discussed with such players as Bill Gates and Prince Al Waleed, Blackstone, Morgan Stanley in its acquisition of CNL Hotels & Resorts, Barry Sternlicht on his investments in China and India, as well as his launch of new brands such as the "1" and the Crillon, Paul Allen, Shaquille O'Neal, Donald Trump, Magic Johnson, Andre Agassi and Seffi Graf?

By themselves, these events show that smart money has tremendous confidence in the U.S. economy and in the lodging sector. They also validate the industry metrics of sustained profits and continued good times for at least several more years. But, combined with a few other factors, they also reaffirm the general belief that this is a great time to be developing hotels -- particularly in a hotel mixed-use context -- if it is done well. Let's take a look at this and consider if we can get it right this time!

Continue reading " A billion here, a billion there. (Ho Hum) Isn't it time we developed some hotels again? Will we get it right this time? Will Hotel-Enhanced Mixed-Use projects drive the market? " »

Posted In: Hotel Developers Conference™ , Hotel Mixed-Use , Outlook and Trends

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« February 2007 | | April 2007 »

About the Authors

Jim Butler

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Jim Butler is recognized as one of the top hotel lawyers in the world. He devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders. Jim leads the Global Hospitality Group®—a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,300 properties located around the globe.
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Robert Braun

Robert Braun is a partner in JMBM's Corporate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,300 properties located around the globe. Bob represents owners in both transactional and operational issues. He advises clients with respect to business formation, financing, mergers and acquisitions, venture capital financing, joint ventures and strategic partnerships. He has represented hotel owners in the negotiation of several hundred management agreements, as well as spa management and franchise agreements. Bob also advises hotel owners regarding telecommunications, software, internet, e-commerce, data processing and outsourcing agreements. To read Bob's articles, go to www.HotelLawBlog.com and select "Management Agreements." For more information, please contact Bob Braun at 310.785.5331 or rbraun@jmbm.com.

Marta Fernandez

Marta Fernandez is a partner in JMBM's Employment and Labor Department and a senior member of JMBM’s Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,300 properties located around the globe. As a management labor lawyer with more than 20 years of experience, Marta specializes in representing hospitality industry clients in all aspects of labor and employment including labor-management relations such as union prevention, collective bargaining for single as well as multi-employer bargaining units, neutrality agreements and defense of unfair labor practice charges before the NLRB. She defends employers in administrative and litigation claims, such as employee claims of sexual harassment and discrimination and counsels clients in preventative strategies such as executive training, arbitration enforcement, and policies and procedures. To read Marta's articles, go to www.HotelLawBlog.com and select "Labor & Employment." For more information, please contact Marta Fernandez at 310.201.3534 or at mfernandez@jmbm.com.

Catherine DeBono Holmes

Catherine DeBono Holmes is a partner in JMBM's Corporate Department and a senior member of JMBM’s Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,300 properties located around the globe. Cathy assists hotel clients with hotel management and franchise agreements, purchase and sale transactions, and condo hotel regime structuring. She has taken hotel owners through complex RFP processes involving all the major hotel brands. She has significant expertise in condo hotels and advises clients in the specific business and legal aspects of condo hotel regime structuring and documentation, including CC&Rs, HOA docs, unit management agreements, shared facilities agreements, rental management agreement programs and securities compliance matters (structuring, documentation and training). To access Cathy's articles on www.HotelLawBlog.com, click on the topics "Condo Hotels" or "Green Hotels" For more information, please contact Cathy Holmes at 310.201.3553 or cholmes@jmbm.com.

Guy Maisnik

Guy Maisnik is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,300 properties located around the globe. Guy's deep and broad transactional practice includes complex real estate finance and venture capital transactions, including project finance, commercial finance, leveraged leasing and real estate acquisitions. He assists clients with development, leasing and disposition, loan portfolio acquisitions, loan and debt restructure, workouts and real estate exchanges. Go to www.HotelLawBlog.com for current information in these areas. For more information, please contact Guy Maisnik at 310.201.3588 or mgm@jmbm.com.

David Sudeck

David Sudeck is of Counsel in JMBM's Real Estate Department and a senior member of JMBM’s Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,300 properties located around the globe. David has significant experience in the vacation ownership arena, focusing on the formation and registration of condominiums, timeshares and fractional interest regimes. He negotiates hotel, spa and restaurant management agreements, and assists client in the development, acquisition, sale and leasing of hotels, golf courses and restaurants. For David's take on current issues in the timeshare arena, go to www.HotelLawBlog.com and click on the topic, "Timeshare." For more information, please contact David Sudeck at 310.201.3518 or dsudeck @jmbm.com.

Robert Kaplan

Robert Kaplan is a partner in JMBM's Bankruptcy, Insolvency and Restructurings Group and a senior member of the Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,300 properties located around the globe. Bob represents lenders, special servicers, hard money lenders, community banks, national banking associations, distressed debt investors, and equity investors, positioning them for the best possible outcome by acting expeditiously to preserve value and increase cash flow. His industry experience and his knowledge of the current capital markets -- where distressed assets often include complex deal structures and securitized loans -- allows him to bring creative and effective strategies to the table. When aggressive litigation is the best strategy, he is a vigorous and effective advocate for his clients. Bob represented the securitized lender in the Chapter 11 bankruptcy case filed by the Clift Hotel in San Francisco, and in the subsequent negotiations and successful sale of the loan to a third party. The lender -- acting by and through GMAC Commercial Mortgage Corporation as special servicer -- was the holder of a $60 million loan secured by a Deed of Trust on the Clift Hotel. He has also served as counsel to CapMark, J.E. Robert Company, Inc., AMRESCO Management Inc. and Midland Loan Servicer in their capacity as special servicers on troubled hotel loans in CMBS pools. For more information, contact Robert Kaplan at 415.984.9673 or rkaplan@jmbm.com.

Martin Orlick

Martin Orlick is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,300 properties located around the globe. Marty specializes in representing hospitality industry clients in Americans With Disabilities Act (ADA) compliance and defense. He has represented more than 300 businesses in ADA issues, many of them hotels and restaurants, as well as hotel mixed-use properties. Marty is a member of the American College of Real Estate Lawyers (ACREL) and a frequent speaker on the ADA and other topics. To read Marty's articles, go to www.HotelLawBlog.com and select "ADA." For more information, please contact Marty Orlick at 415.984.9667 or morlick@jmbm.com.

James Abrams

James Abrams has significant experience in government affairs at the national level, the state level – including the California Legislature and scores of state agencies – and with local governments and agencies. He has authored successful ballot measures and scores of bills for his clients. Jim served as the President and CEO of the California Hotel & Lodging Association from January 1, 1991 through December 31, 2008 and is currently an adjunct professor in the Hospitality Industry Management Program at the University of San Francisco. He is a frequent speaker and writer on all aspects of the law relating to the lodging and hospitality industries, and he is the author of the book Laws Pertaining to the California Innkeeper, which is published by the California Hotel & Lodging Association. To read Jim’s articles, go to www.HotelLawBlog.com. For more information, please contact Jim Abrams at 415.398.8080 or jabrams@jmbm.com.

Eudeen Chang

Eudeen Chang is a lawyer in the Litigation Department of JMBM's Orange County office and a member of the Global Hospitality Group®. He represents hotels in a variety of litigation matters, including ADA defense. He is well-versed in all aspects of litigation, from pre-lawsuit strategizing to trial, post-judgment collection and through appeal. He also serves as outside general counsel for a number of small and mid-sized companies and high net-worth individuals. Contact Eudeen at EChang@jmbm.com or 949.623.7232.

Victor Shum

Victor Shum is a corporate and securities partner in JMBM's Corporate Department and a member of JMBM's Global Hospitality Group® and Chinese Investment Group™. He has advised clients on EB-5 matters since 1999 andassists hotel developers on EB-5 financing as well as public and privatesecurities, mergers and acquisitions, cross-border issues, and otherstrategic business transactions, including real estate transactions andintellectual property and technology licensing matters. For moreinformation, contact Victor Shum at 415.984.9611 or vshum@jmbm.com.

Scott Brink

Scott Brink is a senior member of JMBM's Global Hospitality Group® anda partner in JMBM's Labor & Employment Law Department. Scott is amanagement labor lawyer with more than two decades of experiencerepresenting employers in all aspects of labor relations and employmentlaw including union prevention, collective bargaining negotiations,defense of unfair labor practice charges before the NLRB, wrongfuldischarge litigation, individual and class action employmentdiscrimination and wage-and-hour claims, sexual-harassment litigation,arbitrations, personnel policies, California wage and hour law, andemployee discipline and discharge. An experienced trial attorney, Scotthas litigated a number of high-profile and complex cases involving awide range of labor and employment law matters. For more information,contact Scott Brink at RSB@jmbm.com or 310.785.5365.

Global Hospitality Group®
1900 Avenue of the Stars
7th Floor
Los Angeles, CA 90067
Direct: (310) 201-3526
Direct Fax: (310) 712-8526
E-mail: jbutler@jmbm.com

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Ask The Hotel Lawyer ™

Ask the Hotel Lawyer™ is a quarterly column that I write for JMBM's Global Hospitality Advisor®. If you have a question you would like to submit to Ask the Hotel Lawyer™ please use the comments box below. While your question may not be of sufficient general interest for the column, I will try to respond to you individually if you leave your contact information below. Jim Butler.