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Published on:

8 March 2013

JMBM’s Global Hospitality Group® announces publication of the How to Buy a Hotel Handbook.

The Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP (JMBM) today announced the release of the How to Buy a Hotel Handbook, third in the “We Wrote the Book™” series of handbooks published by the Group’s hotel lawyers.

Jim Butler is the Chairman of JMBM’s Global Hospitality Group®. The How to Buy a Hotel Handbook is based on the experience Jim’s team has gained from more than $60 billion of hotel transactions involving more than 1,300 hotels all over the world. The Handbook provides a detailed overview of the hotel acquisition process, a thorough due diligence checklist, and informative articles that address some of the most important questions that arise when buying or selling a hotel.

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Published on:

12 July 2010

Hotel Lawyer with an alert about the DOL’s historic action targeting hotels.

The U.S. Department of Labor (DOL) is taking historic action. With a huge increase in funding and staffing, the DOL is specifically targeting audits and enforcement actions for every hotel, motel, and resort in the U.S. The program will search for violations of overtime rules, minimum wage, and classification of exempt and non-exempt positions. In addition, one of the primary focal points of these audits will be employers with workers holding H-2B visas.

Hotel labor lawyer Marta Fernandez and hotel lawyer, Jim Abrams, both senior members of the JMBM Global Hospitality Group®, say, ” We expect that the DOL compliance audits will cover all of the laws administered by the DOL and WHD including H-2B labor certification wage requirements and other federal laws such as minimum wage, overtime, and family and medical leave.”

In today’s Alert, they also suggest “4 Things that you should do now — Before it is too late.”

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Published on:

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.

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Published on:

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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Published on:

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.

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Published on:

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.

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Published on:

22 July 2009

Hospitality Lawyer with the Atlas Hospitality mid-2009 Survey, and some observations on its broader implications for the hotel industry on a national basis.

The hospitality lawyers of JMBM’s Global Hospitality Group received an early copy of the July 22, 2009 Atlas Hospitality Group 2009 Mid-Year California Hotel Sales Survey. This new Survey has an entirely different focus than the Atlas Survey released last month on hotel foreclosures that caused such a stir. Maybe the results are intuitive to some, but we found the quantification of distress in hotel markets quite remarkable, and we believe there are profound national implications of these Survey results.

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Published on:

9 July 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.

Hospitality Lawyers with some perspective on recent developments.

My friend Steve Van at Prism Hotels has a great Hotel Default Blog. I you haven’t seen it, you should take a look. His most recent article (“The Sky is Really Falling”) sparked some perspective on whether the hotel industry is finally reaching a critical RESET point we have been talking about on www.HotelLawBlog.com for months. Here are the latest thoughts.

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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:

1 December 2008

Hospitality Lawyer with insights on “What you CAN do NOW” . . . before the pending Employee Free Choice Act is adopted and the unions come calling. Today we are going to talk about a monumentally important event facing the hotel industry, that is almost certain to happen with Barack Obama’s election. It is something that will affect virtually every hotel in the United States, and there is probably a very limited window of a few months that you can do something that will have a long lasting benefit for your hotel. But you have to act very soon.

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