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Hotel Lawyers -- featured subjects and articles


Meet the Money® 2013


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.

October 1, 2009

Hotel Lawyer: Distressed hotel investments -- Maximizing the value for Lenders, Borrowers and Investors

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
01 October 2009

Please see "troubled hotel loans - workouts, bankruptcies & receiverships" for the latest articles on troubled hotels.

Our national hotel practice focuses on being the legal and business advisors for lenders, borrowers and investors. With the hotel industry suffering a record-breaking collapse of revenues and no immediate relief in sight, everyone is starting to examine available options.

CONTINUE READING

September 30, 2009

ADA Hotel Lawyers: California opens door to more ADA litigation, but also offers protection to the well-informed

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
30 September 2009

Americans with Disabilities (ADA) update. Why you need to take advantage of the "Certified Access Specialists program" (CASp)! Much needed new protection for property owners against ADA litigation even as California Supreme Court decision opens door to more ADA claims

ADA Lawyer update. Worried about ADA claims? If not, you should be! There is a flood of private claims driven by evangelistic "true believers" and blackmail artists. The real tsunami is still coming. The government itself is initiating nationwide enforcement "sweeps" against hotels, and the California Supreme Court is making it more profitable and easier than ever to file ADA claims.

What can YOU do? Finally, there is something you can do to shield yourself against this ADA litigation threat in California. The CASp program is cost-effective and invaluable protection. Don't wait until it is too late!

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September 28, 2009

Hotel Lawyers in Phoenix: What happened at the Phoenix lodging conference? Can we find a Black Swan?

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hospitality Lawyers | Authors of www.HotelLawBlog.com
28 September 2009

Hotel Lawyers' insights from The Lodging Conference at the Arizona Biltmore. As our Global Hospitality Group® members compared notes from last week's Phoenix Lodging Conference, we had some observations we wanted to share. Congratulations to Morris Lasky and Harry Javer for another great event.

Here is our take on what happened in Phoenix . . .

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September 16, 2009

New CMBS rule insights from Hotel Lawyer -- effective immediately. Panacea or placebo?

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler, Jeff Steiner and the Global Hospitality Group®
Hospitality Lawyers | Authors of www.HotelLawBlog.com
14 September 2009

Hotel Lawyer insights on the new CMBS rules -- implications for troubled loans today.

On September 15, 2009, the United States Treasury changed the REMIC rules applicable to CMBS to give servicers greater flexibility to modify troubled commercial real estate loans. The changes are effective immediately and are implemented in final regulations under the tax code and a revenue procedure that is designed to provide guidance. In fact, the revenue procedure applies to loans modified after January 1, 2008. What does all this gobbledygook really mean?

Here's our take.

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September 13, 2009

Hotel Lawyer: Hotel liability -- Have you checked your parental release forms lately?

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
13 September 2009

Florida Supreme Court invalidates parental release. Hotel Lawyers suggest fast action.

A recent opinion out of Florida involving a fatal ATV accident to a 14 year old at an ATV track could have a major impact on the validity of parental release forms. In the case of Kirton v. Fields, the Florida Supreme Court ruled that a pre-injury release signed by a parent is not valid against a minor who is injured while participating in a "commercial activity." While other courts have reached similar results, the Kirton case has attracted nationwide attention and may lead those other states that currently uphold parental release forms to change their law to follow Florida's lead.

CONTINUE READING

September 1, 2009

The Hotel Owner's and Hotel Lender's Dilemma: Sell now or sell later? How long does it take to market a hotel today?

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hospitality Lawyers | Authors of www.HotelLawBlog.com
1 September 2009

This is one of many articles on the subject of "troubled hotel loans - workouts, bankruptcies & receiverships" in the rich library at www.HotelLawBlog.com.

Do the math yourself! Run a present value analysis of likely cash flows on 3 alternate scenarios. Decide whether you have the stamina and capital for a long haul if you intend to hold.

Hotel Lawyer. As a hotel owner or lender with a distressed property in the worst business environment for more than 70 years, you have a decision to make. Do you sell the hotel now at a deep discount, or do you hold on for things to get better? How long does it take to market a property in this environment?

Owners and lenders of thousands of hotels in the United States and abroad are confronted with this decision. Here are a few thoughts from the pros.

CONTINUE READING

August 30, 2009

Hotel Lawyer: Does "End of the Recession" mean "Recovery"? Not for luxury hotels!

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hospitality Lawyers | Authors of www.HotelLawBlog.com
30 August 2009

This is one of many articles on the subject of "troubled hotel loans - workouts, bankruptcies & receiverships" in the rich library at www.HotelLawBlog.com.

Hotel Lawyer with some bad news for the luxury hotel segment.

From some reactions, you might think that the likely "End Of The Recession" by the end of 2009 means that the "Recovery" is close behind.

Unfortunately, what follows next will not feel much better for many for a very long time. Nowhere is that more true than in the luxury hotel segment, where Smith Travel Research foresees a 27% drop in RevPAR for 2009 followed by another 9% in 2010!

Here are a few of the most interesting slides from Smith Travel Research and other industry sources since August 20, 2009, focusing on the luxury hotel segment. How bad are things? How bad are they likely to get from here? Fasten your seat belt!

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August 9, 2009

Hotel Lawyer: Some practical alternatives to hotel closings - turning around operating results.

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
9 August 2009

Please see "troubled hotel loans - workouts, bankruptcies & receiverships" for the latest articles on troubled hotels.

Hotel closings: Hotel Lawyer with another look at alternatives to closing that hotel.

We have gotten a lot of feedback on our recent article about the precipitous drop in value that accompanies a hotel closing, or as some say, when the hotel is "put in mothballs" or "goes dark". 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.

In that recent article, we talked about 8 bad things that happen when you close a hotel, and suggested that a hotel should never be closed without first running a careful analysis of cash flows and holding costs. That is not to say, a hotel should never be closed, but a hotel closing deserves close scrutiny, and full exploration of the alternatives.

Today, we will focus on one of those.

CONTINUE READING

August 3, 2009

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.

by the JMBM Global Hospitality Group®

For the most recent update on this topic, click here

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
3 August 2009

Please see "troubled hotel loans - workouts, bankruptcies & receiverships" for the latest articles on troubled hotels.

Hotel lawyer with another perspective on closing a money-losing hotel. Sometimes there seem to be no alternatives. You can't beg, borrow or steal more capital to advance in order to meet operating costs to keep a hotel open. A stubborn union won't relent of ruinous work rules, or an operator won't reduce staffing and facilities to reflect depressed occupancies.

And initially it seems like a fire sale liquidation of a failed hotel is a poor alternative to suspending operations until the hotel market returns to some sense or normalcy. Many lenders will be shocked to learn how dramatically hotel values can crash -- literally over night -- once a hotel is closed. Here is some food for thought.

CONTINUE READING

July 27, 2009

Hospitality Lawyer: The "amazing relationship" between GDP and hotel room demand. When the recovery comes, what will it look like for the hotel industry?

by the JMBM Global Hospitality Group®

By Jim Butler and the Global Hospitality Group®
Hospitality Lawyers | Authors of www.HotelLawBlog.com
27 July 2009

Hospitality Lawyer with some insights on the "amazing relationship" between GDP and hotel room demand. What does it mean for the lodging industry when the "recovery" finally comes?

Going back to the 1920s, there has been approximately a 1 to 1 relationship between the demand for hotel rooms and the U.S. gross domestic product (and its predecessor, gross national product). The long-term trend line for the GDP and lodging industry demand have been parallel, even during the Great Depression and World War II. For some brief periods, this relationship was off a bit, but never as badly as with the current economic crisis. During the Great Recession of 2008-2009, the demand for hotel rooms has fallen FOUR times as fast as the GDP has declined.

This creates some very interesting speculation. For example, when the recovery finally does come, will the old 1 to 1 relationship be restored? Will the lodging industry start improvement from its then-current level on that 1 to 1 basis? Or will the lodging demand "snap back" to the GDP curve, making up for that historic 4 to 1 distortion we have just experienced on the downside?

CONTINUE READING