Articles Posted in Hotel Mixed-Use

Published on:

28 April 2011

Hotel Lawyer with more on the long-term future of condo hotels.

It is interesting that I got calls from two reporters about the state of the condo hotel sector this week. One from a major daily paper doing background research, and the other from a well-respected industry publication, MortgageOrb, published by Zackin Publications (which also publishes Commercial Mortgage Insight and Secondary Marketing Executive.)

Condo hotels have not been in the news for some time, and as hospitality transactions heat up, many are now wondering how and when this niche product will be resurrected.

Phil Hall of MortgageOrb asked some excellent questions about the condo hotel sector and our interview, titled Jim Butler Checks Out the Condo-Hotel Niche, published in MortgageOrb’s Person of the Week column, is reprinted below.

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Published on:

14 April 2011

Hotel Lawyer with good news for well-structured condo hotel deals. With the experience gained as legal and business advisors on more than 100 condo hotel and hotel condo projects, we have said for many years that this type of project has earned an enduring place in the landscape of hotel and real estate development. We still believe that.

The main issues of successful hotel mixed-use development are managing consumer expectations, fulfilling those expectations, and creating a viable mixed-use regime structure. In the case of condo hotels, a viable structure must work from an operational standpoint, be economically sustainable, and avoid triggering violations of Federal and State securities laws.

In a recent lawsuit, involving the Hard Rock Hotel San Diego, a federal district court in California ruled against the condo hotel buyers, finding that no securities laws were violated — the plaintiffs did not allege facts that would cause the condo hotel units to constitute “securities.” We see the case as affirming the effectiveness in defeating plaintiffs’ claims of two structural elements we have encouraged all our clients to use.

My partner, Catherine Holmes, who structures most of our condo hotel regimes, talks about these factors and the case below. Catherine advises clients in the specific business and legal aspects of condo hotel regime structuring and documentation, including securities compliance matters, documentation and training. In her article below, she talks about the case and what it means for us in the condo hotel world. It is good news!

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Published on:

22 November 2010

Mixed-use can be a key to unlock value. But “standards” can be critical to protect the value of your hotel mixed-use asset

Some years ago, we coined the term “hotel-enhanced mixed-use” to describe those dynamic mixed-use properties where the hotel acts as the “spark plug” that energizes the entire project.
Hotels can be the “ultimate amenity” for mixed-use projects because they can distinguish the project, provide a great driver of traffic, and offer an integrating hub for residential and retail customers.

Since that time, we have seen hotels in successful mixed-use properties achieve RevPAR premiums of 30% to 40%. But these success stories are written about hotel developers and brands that understood — on the front end — that quality control had to be hard-wired into the regime. Hotel owners and hotel brands that failed to do that have not been so lucky.

In her article below, which was recently published by Hotel Business, hotel lawyer Catherine Holmes, a senior member of the JMBM Global Hospitality Group®, offers experienced advice on how you can “Protect your mixed-use asset by creating and maintaining standards.”

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Published on:

4 February 2009

Hotel lawyer in Beverly Hills at the ULI “Reinventing Retail and Mixed-Use” program, the Beverly Hilton, Beverly Hills, California, February 4-5, 2009. The Urban Land Institute’s big retail conference is underway and one of the lead off panels had some great information about why hotels are being added to retail mixed-use projects.

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Published on:

5 January 2009

To say the least, the last year has been a very “interesting” one. Here are our picks for “The Best from HotelLawBlog.com” from 2008. There are some classic pieces here!

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Published on:

Author of www.HotelLawBlog.com
13 May 2008
Here is the presentation from Bobby Bowers of Smith Travel Research. (bobby@smithtravelresearch.com or (615) 824-8664) at JMBM’s recent Meet the Money® conference. This is an excellent overview of where the hospitality industry has been and where we are going.

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Published on:

Author of www.HotelLawBlog.com
21 April 2008
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.

Hotel Lawyer on hotel management agreements. Long-term, no-cut hotel management agreements: How to get the right brand and operator for your hotel project . . . and a deal you can live with.
The successful matching of a hotel brand and operator with an asset and its owner is an important determinant of the financial and operational success of a hotel project. Aside from the right “marriage” partners, the terms of the management contract tying them together is critical, because it will likely govern the relationship for decades and is hard to change once cast.

Question: What’s more important for your hotel project than getting the “right” brand and operator?

Answer: Not much! Finding the right operator or brand for your project — and achieving reasonable terms — can make a significant and positive impact in key areas: value, financing, and operational success.

So how do you do that?

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Published on:

Author of www.HotelLawBlog.com
28 August 2007
Hotel Lawyer in Beverly Hills with good news for luxury hotel mixed-use aficionados. The trend of hotel mixed-use continues. This time, Beverly Hills will get its turn as the city anxiously awaits the latest luxury hotel development by the internationally acclaimed Montage Hotels & Resorts. Just steps from Beverly Hills’ Rodeo Drive, and in the City’s “golden triangle,” this 201-room luxury hotel will be a fresh breath of air to those who appreciate “the best.”

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Published on:

Author of www.HotelLawBlog.com
27 July 2007
Hotel Lawyer on GREEN hotel development. Jeffer, Mangels, Butler & Marmaro LLP (JMBM) announced today that The Hotel Developers Conference™ 2008 will focus entirely on green hotel development and renovation. Presented by the 50-lawyer team of JMBM’s Global Hospitality Group® this green hotel “summit” is co-sponsored by the University of Las Vegas (UNLV) and the Los Angeles Chapter of the United States Green Building Council (USGBC). More than 450 hospitality industry leaders are expected to attend, March 12-13, 2008, at the Green Valley Ranch Resort & Spa in Las Vegas, Nevada.

As we have said here on www.HotelLawBlog.com before: “Don’t wait for the GREEN. It is here”

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Published on:

Author of www.HotelLawBlog.com
9 July 2007
Hotel Lawyer on eco-friendly hotel financing in Hollywood California. Today, JMBM issued a press release announcing that its Global Hospitality Group® closed the senior debt portion of the capital stack on one of the largest single hotel mixed-use projects in the country — and one bound to be a “Green” project at that! The complex construction loan transaction was for JMBM client, HSH Nordbank AG, a leading credit institution headquartered in Hamburg, Germany, and particularly renowned for very large construction loans on luxury hotel projects.

This is a significant transaction for several reasons.

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