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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.

Hotel Management Agreements

Posted On: May 27, 2009 by the JMBM Global Hospitality Group®

Terminating hotel management agreements when things don't work? Not easy, but not impossible either.

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

27 May 2009

Hospitality Lawyer: Fixing hotel management agreements that don't work.

What is one of the nicest acknowledgements of professional accomplishment a hotel lawyer might receive? In my book, being recognized by the New York Times as an expert in a core aspect of my legal and advisory practice is pretty close, and that is what happened yesterday in a Times article by Jonathan D. Glater about the increased friction between hotel owners and operators now erupting into litigation in the case of the Four Seasons Aviara and the Fairmont Turnberry.

As I said in another New York Times quote last month by Martha C. White, we are facing the prospect of hotel bankruptcies and foreclosures reaching levels not seen since the last big downturn of the 1990s.

And indeed, it is in difficult times like these when hotels fail to meet debt service -- or even operating expenses -- that owners and lenders become very frustrated with operators that prefer their own interests to those of the hotel. And that is why Jonathan Glater's article was looking at two high profile emerging battles where owners are standing up to operators and saying, "I'm mad as hell, and I'm not going to take it anymore."

Here's how we see it.

Continue reading " Terminating hotel management agreements when things don't work? Not easy, but not impossible either. " »

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Posted On: April 2, 2009 by the JMBM Global Hospitality Group®

Ask the Hotel Lawyer: Hotel bankruptcy trump card. Terminating hotel management agreements without liability -- the alchemy of lead to gold for troubled hotels and hotel loans?

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

How do you terminate a long-term hotel management agreement or HMA? The hotel bankruptcy trump card. This is an increasingly popular question regularly put to the hotel lawyers of JMBM's Global Hospitality Group®.

Continue reading " Ask the Hotel Lawyer: Hotel bankruptcy trump card. Terminating hotel management agreements without liability -- the alchemy of lead to gold for troubled hotels and hotel loans? " »

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Posted On: January 5, 2009 by the JMBM Global Hospitality Group®

The Best from the Blog -- Hotel Lawyers

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

Continue reading " The Best from the Blog -- Hotel Lawyers " »

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Posted On: October 26, 2008 by the JMBM Global Hospitality Group®

Hospitality Lawyer: Hotel Management Agreements: SNDAs or Subordination Agreements

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com and
Robert E. Braun | Partner JMBM's Global Hospitality Group®

26 October 2008

Hospitality Lawyer on how SNDAs or Subordination Agreements affect the value, financeability, and collateral value of a hotel.

As we mentioned recently, Bob Braun and I decided to create a series of articles about Hotel Management Agreements or HMAs as hospitality industry veterans often call them. (See "Hotel Management Agreements 201 by Hospitality Lawyer - Indemnification Provisions"). The successful matching of the brand and operator with your hotel can be one of the most important factors controlling your hotel's value, liquidity, financeability and operational success. Many owners do not realize how important the HMA is until it is too late. That's why the Hospitality Attorneys at JMBM's Global Hospitality Group® -- who focus on representing hotel owners, developers and lenders -- decided to share some important lessons we have learned over the years in working on many hundreds of Hotel Management Agreements -- probably more than 1,000.

If you are about to explore looking for a hotel operator for your hotel project, have a new hotel management agreement in your future, or have issues with an existing HMA, you will find important information under the "Hotel Management Agreements" TOPIC -- one of the tabs at the top -- at www.HotelLawBlog.com. You might also check out the resources listed at the end of this article.


Continue reading " Hospitality Lawyer: Hotel Management Agreements: SNDAs or Subordination Agreements " »

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Posted On: September 5, 2008 by the JMBM Global Hospitality Group®

Hotel Lawyer: The 5 questions every owner should ask before selecting a hotel brand

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
5 September 2008

Hotel brand proliferation offers more choices -- and challenges -- for hotel owners. What are the 5 questions every owner should ask before selecting a hotel brand?

Continue reading " Hotel Lawyer: The 5 questions every owner should ask before selecting a hotel brand " »

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Posted On: July 29, 2008 by the JMBM Global Hospitality Group®

Hotel Management Agreements 201 by Hospitality Lawyer - Indemnification Provisions

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com and
Robert E. Braun | Partner JMBM's Global Hospitality Group®
29 July 2008

Hospitality Lawyer: How to survive some of the custom and "lore" of Hotel Management Agreement Indemnification Provisions.

While we have a very deep bench of hospitality lawyers -- particularly in hotel management agreements -- my partner, Bob Braun, is one of the most experienced on our team, with several hundred management contracts to his credit, and a dozen or more on his current work schedule at any point in time.

So it was no surprise when he suggested recently that we work together on a few articles going "beyond the basics" of hotel management agreements and post them for our industry friends on www.HotelLawBlog.com. We decided to call this upcoming series, "Hotel Management Agreements 201." Bob took the lead in putting this first one together on the critical area of INDEMNIFICATION, and here it is.

Continue reading " Hotel Management Agreements 201 by Hospitality Lawyer - Indemnification Provisions " »

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Posted On: June 21, 2008 by the JMBM Global Hospitality Group®

Top picks of hospitality lawyer insights in 2008 are: (1) hotel financing and hotel values in buy-sell transactions, (2) hotel management agreements, and (3) LEED & GREEN hotel development

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
21 June 2008

Hospitality Attorney's top insights to hotel industry. As we approach the half-way mark in 2008, the hospitality lawyers in JMBM's Global Hospitality Group® thought it would be interesting to determine our readers' "top picks" of all the articles we have posted this year. We could almost say that the top three picks are hotel financing, hotel financing and hotel financing. But here are the top three picks by "Topics" at www.HotelLawBlog.com:

(1) Hotel financing and hotel values in buy-sell transactions

(2) Hotel management agreements

(3) LEED and GREEN hotel development

Continue reading " Top picks of hospitality lawyer insights in 2008 are: (1) hotel financing and hotel values in buy-sell transactions, (2) hotel management agreements, and (3) LEED & GREEN hotel development " »

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Posted On: May 1, 2008 by the JMBM Global Hospitality Group®

Hotel Attorney on Hotel Management Agreements. How to get the right hotel operator: part 3

The Hotel RFP Process: 5 Factors that determine what your RFP looks like.
16 Steps to a successful RFP Process
By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
1 May 2008

Hotel Attorney on Hotel Management Agreements. How to get the right brand and operator for your hotel project . . . and a deal you can live with -- The Hotel RFP Process.

In the last few articles here at www.HotelLawBlog.com, I have been sharing some of the important lessons our hotel attorneys in the JMBM Global Hospitality Group® have learned about hotel management agreements over more than $50 billion of hotel transactions, involving more than 1,000 properties. While it may be an exaggeration to say that "JMBM wrote the book on hotel management agreements," we certainly know the area and have at least written a few chapters in that book.

In parts 1 and 2 of this series, we covered:

* How the terms of your hotel management agreement can easily raise or lower the nominal value of your hotel by 25% or more

* The 5 biggest mistakes owners make in pursuing hotel management agreements (and how to avoid them)

* What's a Hotel RFP and what shapes it.

In case you missed our earlier discussion, please see "How to get the right hotel operator - part 1" and "How to get the right hotel operator - part 2." You will find it with some other great Hotel Management Agreement resources under the topic by that name here at www.HotelLawBlog.com.

Let's return now to the Hotel RFP process ...

Continue reading " Hotel Attorney on Hotel Management Agreements. How to get the right hotel operator: part 3 " »

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Posted On: April 29, 2008 by the JMBM Global Hospitality Group®

Hotel Attorney on Hotel Management Agreements. How to get the right hotel operator: part 2

The Hotel RFP Process: How to create value
By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
29 April 2008

Hotel Attorney on Hotel Management Agreements . How to get the right brand and operator for your hotel project . . . and a deal you can live with -- The Hotel RFP Process.

Recently, I talked about some important lessons our hotel attorneys in the Global Hospitality Group® have learned about hotel management agreements -- lessons learned in the course of working on more than $50 billion of hotel transactions involving more than 1,000 properties all over the world. Specifically, we looked at

* How the terms of your hotel management agreement can easily raise or lower the nominal value of your hotel by 25% or more

* The 5 biggest mistakes owners make in pursuing hotel management agreements (and how to avoid them)

In case you missed our earlier discussion, please see "How to get the right hotel operator - part 1". You will find it with some other great Hotel Management Agreement resources under the topic by that name at www.HotelLawBlog.com.

One of the keys we discussed to maximize the value (and avoid the common pitfalls) is the Hotel RFP Process. What is it? What are the steps that should be included in every RFP? Where do you get the form or checklist? What kind of assistance do you need? Here are the answers that may save you a lot of money!

Continue reading " Hotel Attorney on Hotel Management Agreements. How to get the right hotel operator: part 2 " »

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Posted On: April 29, 2008 by the JMBM Global Hospitality Group®

Hotel Attorney: Ritz-Carlton Bali hotel management agreement termination further court order

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
29 April 2008

Hotel Attorney on hotel management agreements and operator breach of duty. U.S. District Court confirms that Owner of the Ritz-Carlton Bali can terminate long-term, no-cut management agreement without penalty.

As of April 29, 2008, the Federal District Court in Maryland issued an order ruling on various post-trial motions of our client, the owner of the Ritz-Carlton Bali. The details of this owner-operator dispute have been previously covered here at www.HotelLawBlog.com, but today was the latest development in this struggle.

Here's what the court said.


Continue reading " Hotel Attorney: Ritz-Carlton Bali hotel management agreement termination further court order " »

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