Articles Posted in International Hotel Investment

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By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
15 November 2012

Hotel Lawyer with the new “Resource Guide to the U.S. Foreign Corrupt Practices Act”

In the last few years, a lot of hotel transactions have been completed in foreign countries or involving foreign investors. The significance of international hotel transactions has soared and many businesses have found that some of the most attractive opportunities involve crossing international borders.

On November 14, 2012, the US Department of Justice (DOJ) and the Securities & Exchange Commission (SEC) issued a 130-page document which is the most comprehensive effort by these agencies to provide long-awaited guidance to respond to complaints from companies that have complained about the ambiguity of the Foreign Corrupt Practices Act (FCPA).

The article below is by hotel lawyer Bob Braun, a senior member of JMBM’s Global Hospitality Group®, who has been spending more of his time lately representing owners, developers and investors in international investments and transactions involving hotels, resorts, mixed-use developments and other hospitality-related projects. In this article, he reminds us why the FCPA should always be at the top of our minds when we pursue international transactions, as he gives us the background on the FCPA and the significance of the new Guide from the DOJ and SEC.

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By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
5 January 2011

Jeffer Mangels Butler & Mitchell LLP (JMBM), one of California’s foremost full-service law firms, today announced that its Global Hospitality Group® facilitated the sale of the Sheraton Universal Hotel to Shenzhen New World Group Co. JMBM represented the receiver and structured the sale so that the 20-story, 451 room hotel could be conveyed while the hotel was in receivership.

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By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
15 September 2010

Hotel Joint ventures are springing up like weeds in the hotel industry.

Nearly two years after the collapse of the old economic order of easy money, the biggest players in the hotel industry are using the joint venture structure to seize opportunities for acquisitions and expansion.

But everyone knows joint ventures can be risky. Why is the JV model being used and is there a way to minimize the very real risks that exist in every joint venture?

In her article below, which was recently published by Hotel Business, hotel lawyer Catherine Holmes, a senior member of the JMBM Global Hospitality Group®, explains why the joint venture model is being used for hotel acquisitions and expansion, what inherent risks exist in the the JV structure, and offers “Four Keys to Success in Hotel Joint Ventures.”

Cathy’s straightforward and timely advice is based on her experience representing numerous hotel owners in the acquisition process, whether it is a debt or equity transaction, a joint venture, a public-private partnership, or a deal that requires a complex capital stack. She recently represented Formosa International Hotel Corporation in the acquisition of the Regent brand hotels with operations in Asia, Europe, the Middle East and the Caribbean.

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By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
22 April 2010

Hotel Lawyer with an update on successful Asian investor strategy

A number of years ago, JMBM’s Global Hospitality Group® trademarked Global Hospitality Advisor® to reflect both the global and advisory nature of our focused hospitality practice. We are very proud to use it today with reference to Formosa International, a client we represented in signing a definitive agreement for the acquisition of worldwide rights to the Regent brand and hotel business.

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By Jim Butler, Hotel Lawyer | 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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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
8 January 2007
Hospitality Lawyer on international hotel investments. In a number of recent postings on www.HotelLawBlog.com, I have focused on the attractiveness of international hotel investments and some of the big names pouring investment overseas. Some of the hot markets include Mexico, Costa Rica, the Caribbean, Spain, Italy, London, Saudi Arabia, Dubai, China and India. In Why we’re building hotels in India like crazy, I focused entirely on India, an explosive market that has often been overshadowed by opportunities in China. In announcing plans for Starwood Capital to invest a half billion in India alone, Barry Sternlicht says that there is so much demand that he is targeting an average annual return of 20% on investments in India!

With all the exciting potential for hotel development in these booming markets, it is tempting for developers and investors to rush in to “scoop up the profits”. But before they do, it would be wise to remember that risk is usually commensurate with reward. At the very least, they should ask: “What is the best way to make successful foreign hotel investments?” Here are a few thoughts from www.HotelLawBlog.com . . .

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
3 January 2007
Hotel Lawyer — Top Picks of 2006. Yes, 2006 has been a record year for many in the hospitality industry, and for the hotel lawyers at Jeffer, Mangels, Butler & Marmaro LLP. As we have already given our Outlook for 2007, we thought it might be interesting to look back on our Top Pick articles from 2006 from www.HotelLawBlog.com.

The Top Picks articles are organized by the major TOPICS on the Blog. We generally tried to select just the top two or three articles for each TOPIC. It was a major struggle to decide where to make the cutoff. If you want more information on a particular TOPIC, you can go to www.HotelLawBlog.com, and search for all articles on that TOPIC. To do that, just scroll down the right hand side, and below the (free) subscription and RSS Feed buttons is the Browse search engine that enables you to sort by TOPIC (or date, or key words, etc.).

Here they are . . .

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
27 December 2006
Hotel Lawyer on international hotel investment. Over the past two days, the shares of InterContinental Hotels Group Plc — which describes itself as “the world’s biggest lodging company” — rose substantially, fueling speculation that it has become a takeover target. The shares are up approximately 8% since December 22, 2006 (and 49% for 2006). Citing the Guardian, Bloomberg says there are rumors of a buyout firm making an offer at a “significant premium” to current stock prices. Some think a ₤5.7 billion (U.S.$11.2 billion) offer may be made.

Who are the likely buyers? Aside from the financial aspects of the takeover, what does the interest in InterContinental mean? How does this play into the big push into international hotel investments I have been talking about on www.HotelLawBlog.com in some of the most recent postings? Or into the power of brands, or the rush to hotel-enhanced mixed-use development?

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
26 December 2006
Hospitality Lawyer India. In a number of articles on www.HotelLawBlog.com, I have talked about the exploding international hotel markets, including Mexico, Costa Rica, the Caribbean, Spain, Italy, London Saudi Arabia, Dubai and China — but particularly INDIA. Why are we building hotels in India? Why are all of the brands and operators trying to stake out territory in India?

It’s not hard to figure out. On December 23, 2006, the Los Angeles Times ran an article by Henry Chu that summed it up pretty well. The headline read: “India, a boom that’s bursting at the seams.” The explosive growth in India is what has everyone scrambling to feed this hungry market.

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
11 December 2006
Hospitality Lawyer Baja Mexico. He’s done it again if you believe the AP Wire reports. On Saturday, December 9, 2007, the Associated Press reported that, “Donald Trump’s new luxury hotel-condominiums on Mexico’s booming Baja California coast registered about $122 million in sales Friday, potentially heralding a resurgent development boom along the Pacific shoreline, just south of the U.S. border.”

I’ve noted in prior postings that Baja is red hot, and that Trump has become a brand. So what is noteworthy about this latest development?

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