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1. The ADA Compliance and Defense Guide — free download

2. Hotel Lawyer on HMAs: “The shrinking terms of hotel management agreements”

3. Hotel Financing 2015: JMBM’s “preferred” EB-5 construction financing program for top developers and projects

4. The “new breed” of condominium hotels — Key to financing new hotel development? Selling condo hotels as “securities” under new SEC Rule 506(c) . .

5. Los Angeles is the new magnet for real estate investment

6. FAQs on “service animal” requirements of the ADA. What every hotelier needs to know. Why Uber was sued over service animals.

7. Why this may be the time to buy or sell a hotel management company

8. Hotel development & EB-5 financing: Why you don’t want to form your own regional center

9. Hotel Liability for Guest Information — What you need to know and how to avoid liability.

10. Hotel Franchise Lawyer: 8 things to negotiate in your next franchise agreement

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

12. Hotel Franchise Lawyer: Hotel Franchise Agreements and the 5 biggest mistakes a hotel owner can make

13. Hotel Lawyer with insights on "How to get a great hotel operator"

14. The importance of Comfort Letters in financing franchised hotels

15. Hotel Lawyer: Something everyone buying or building a golf course should know . . .

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Meet the Money® 2014

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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.

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JMBM’s Global Hospitality Group® is pleased to announce that Guy Maisnik, Vice-Chair of the Group, will participate on the panel addressing Private Equity Sources and Deals at the 2018 Lodging Conference in Phoenix.

The panelists will discuss hotel investment strategies, structures, projects, sectors and locations targeted for creating value, and the changing landscape of private equity.

Guy has strong expertise in hotel finance, including private equity, and advises buyers, sellers, lenders, opportunity funds, special servicers, REITs and developers in hotel transactions, joint ventures, hotel management and franchise agreements, buying, selling and ground leasing of hotels, complex mixed used development and fractional and timeshare structuring. He also assists lenders and mezzanine lenders, and has significant experience in structuring capital raises through Chinese and EB5 investments. Guy represents clients and projects throughout the United States, Mexico, Canada, South America, Caribbean, Eastern and Western Europe, Australia, the Middle East and Asia.

Panel: Private Equity Sources and Deals
Location: The Arizona Biltmore, Phoenix
Date: Wednesday, September 26, 2018
Time: 2:00 PM – 3:15 PM

Panelists:

Michael G. Desiato, President, MGD Consulting Services – moderator
Shaan Bhatia, Vice President, Starwood Capital Group
Christopher Diffley, Managing Director, Investments, Rockbridge
Mark J. Gordon, Partner, Intrinsic Hotel Capital
Guy Maisnik, Partner & Vice Chairman, Global Hospitality Group®, Jeffer Mangels Butler & Mitchell LLP

JMBM’s Global Hospitality Group® is pleased to be a sponsor of the Lodging Conference. We invite you to attend Guy’s panel on Private Equity Sources and Deals, or contact him at MGM@jmbm.com if you would like to discuss a project. Click here for more information or to register.

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31 August 2018

Click here for the latest articles on Data Technology, Privacy & Security

Despite a general effective date of January 1, 2020, there are 5 steps that anyone doing business in California should take now to avoid problems under the California Consumer Privacy Act of 2018 (the Act) when it becomes effective. As a follow up to his original article explaining the important provisions of the Act, my partner Bob Braun provides us an important update on recent regulatory activity concerning the Act and provides practical guidance on what needs to be done now.

To read Bob’s original article about the Act, click California Adopts the California Consumer Privacy Act of 2018.

Update: California Consumer Privacy Act of 2018
5 steps to take NOW to avoid trouble
by
Bob Braun

Recent regulatory developments

Late last week, the California legislature published proposed technical amendments to the California Consumer Privacy Act of 2018. These amendments reflect almost two months of lobbying by both consumer and industry groups. In addition, the FTC has received a number of complaints that the Act, along with other proposed state actions, would create confusion in an already-fragmented approach to privacy and security in the United States.

5 steps to take now

While the changes in the Act and attacks on the Act continue to create uncertainty, businesses need to consider immediate steps to avoid the significant penalties for non-compliance. Businesses must be in full compliance on the effective date of January 1, 2020. It will not be adequate to start compliance efforts on that date.

In particular, there are 5 steps that businesses need to take to ensure compliance by the effective date: CONTINUE READING →

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02 July 2018

Editor’s Note: See article update: Take 5 steps NOW to avoid trouble with California’s new privacy act.
Click here for the latest articles on Data Technology, Privacy & Security

Privacy legislation is dominating the news cycle these days–and it’s unlikely to slow down. Now, as U.S. companies are adjusting to the requirements of the European Union’s General Data Protection Regulation, the State of California has introduced new laws that will apply to California companies or companies doing business in California. Senior member of JMBM’s Global Hospitality Group® and Co-Chair of the Firm’s Cybersecurity & Privacy Group Bob Braun discusses the implications of the new legislation and how it will impact hotels, below.

California Adopts the California Consumer Privacy Act of 2018
by
Bob Braun

On June 28, 2018, just more than a month after the EU’s General Data Protection Regulation (GDPR) went into effect, imposing broad obligations and restrictions on any entity collecting personal information of EU citizens and residents, the California legislature has passed AB 375, and the governor has signed, the California Consumer Privacy Act of 2018, providing many of the same protections and sure to upend privacy regulation in the United States. The Act was passed by the State Assembly and signed into law by Governor Jerry Brown on June 28, 2018.

Hotel companies have been grappling with the impact of the GDPR on their operations, and analyzing whether they need to adopt policies and procedures, appoint data privacy officers and register with a Data Privacy Agency as required under the GDPR. Since a privacy rule that impacts California effectively becomes a national standard, this new Act means that hotel companies will need to consider many of those issues, regardless of their foreign operations.

The Act goes into effect on January 1, 2020, and while it has broad implications that will become more apparent over time, there are some key initial takeaways. CONTINUE READING →

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21 June 2018

As the number of electric and hybrid vehicles in California continues to grow, we are also seeing the proliferation of electric vehicle charging stations in the parking areas provided by hotels, theaters, stadiums and hotel mixed-use properties. While owners and managers of these facilities are providing a much-needed service to their guests, many are unaware that – at least in California – if their facility provides electric vehicle charging stations, a certain number of them must be accessible to the disabled.

The regulations and requirements for these accessible charging stations are very specific, and the article below, written by my partner Marty Orlick, gives only a high-level summary of the scoping and technical requirements. This is an area where you really need to talk to the experts.

 

Are Your electric vehicle charging stations “accessible” to disabled guests
under California’s latest regulations?
by
Martin H. Orlick
Chair, JMBM’s ADA Compliance & Defense Group

With the surge in popularity of electric and hybrid vehicles, the need to provide Electric Vehicle Charging Stations (EVCS) is on the rise at hotels, theaters, stadiums, and hotel mixed-use properties. If your EVCS are not accessible to your disabled guests, here is what you need to know.

California’s Regulations for EVCS Accessibility

In California, if your commercial facility provides EVCS for your customers and guests, you must also provide a certain number of EVCS that are accessible.

California’s accessibility regulations for EVCS are in the 2016 California Building Code (CBC), and went into effect on January 1, 2017. The regulations supersede and expand upon California’s little-known “Interim Disabled Access Guidelines for Electric Vehicle Charging Stations” created in 1997.

The CBC accessibility regulations include both scoping requirements (what type of EVCS and how many) and technical requirements (where to locate EVCS, and how to make them accessible).

Scoping Requirements

The number and type of accessible EVCS required is determined by the total number of EVCS at a facility. When new EVCS are added to a site with existing EVCS, the total number of new and existing EVCS is used to determine the number of accessible EVCS.

The table below, provided by the California Division of the State Architect, sets forth these scoping requirements. CONTINUE READING →

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19 June, 2018

Meet the Money® is a productive conference with a casual atmosphere; the executives and other hotel industry representatives who attend often speak candidly about their expectations for hotel finance, development and investment throughout the upcoming year.

The short video below highlights how some of our attendees feel about 2018—watch and find out what some of the industry’s most well-known brands, banks, consultants, mangers and developers have to say about what’s on the horizon.

CONTINUE READING →

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25 May 2018

The European Union’s General Data Privacy Regulation, rules protecting the privacy of personal information, has gone into effect and impacts every company that does business in the EU. This will impact hotel owners, developers, brands, operators and managers–any company with a hotel property in the EU or that collects information from EU citizens must adhere to the new regulations.

What does that mean for your business, and where should you start the process of compliance? Senior member of JMBM’s Global Hospitality Group® and Co-Chair of the Firm’s Cybersecurity & Privacy Group Bob Braun summarizes the issues, below.

Why should I Care About GDPR?
by
Bob Braun

The importance of May 25, 2018. If you are reading this, you have probably been inundated with emails from companies announcing that they have adopted new and better privacy and security policies and procedures. This isn’t a coincidence – as of May 25, 2018, the EU’s General Data Privacy Regulation (GDPR), requires every organization that does business in the EU, or that collects information from EU citizens, to guarantee the privacy and accuracy of personal information. While the purpose of the GDPR is to strengthen and unify data protection for all individuals within the EU, its effect is worldwide; every organization that does business in the European Union or collects personal information from individuals in the European Union is subject to this regulation. CONTINUE READING →

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08 May 2018

Today, at Meet the Money® – National Hotel Finance & Investment Conference, Mike Cahill, co-chairman of the Lodging Industry Investment Council (LIIC) and CEO and Founder of HREC Hospitality Real Estate Counselors, presents the annual LIIC Top Ten.

For more than ten years, LIIC, the industry’s preeminent think tank, has surveyed its members to determine challenges and opportunities for the coming year. LIIC’s members represent the direct acquisition and disposition control of more than $40 billion and include industry investors, lenders, corporate real estate executives, REITs, public hotel companies, brokers, and equity sources.

Here is the 2018 LIIC Top Ten

1. Hotel Real Estate – Floating Forward in a Fluid Market

  • 2018’s survey results indicate “business as usual”
  • Hotel transaction market is fluid; hotels are trading
  • Solid hotel debt availability
  • Private Equity and Listed REITs predicted to dominate the purchase of Upscale to Luxury hotels
  • Small Private Buyers and Regional Owner/Operators predicted to dominate the purchase of Economy to Upper Midscale hotels

2. Trump is Good for Hotel Owners

67% believe Trump’s tax reform bill will positively affect hotel owners

  • 41% citing an increase in GDP growth
  • 28% citing a correlated increase in business travel

Positive outlook on US economy

  • 70% believe the economy will continue to trend upwards in the next 24 months

CONTINUE READING →

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07 May 2018

LOS ANGELES—Jeffer Mangels Butler & Mitchell LLP (JMBM) is pleased to announce that hospitality lawyer Jeffrey T. Myers has joined the Firm as a Partner in JMBM’s Global Hospitality Group® and Real Estate Department.

Myers’ practice focuses on the development, financing, acquisition, and operation of hotels, resorts and other hospitality properties. His clients include developers, capital providers, commercial lessors, and tenants. He has assisted clients in a full range of hospitality projects including hotels, resorts, casinos, restaurants, nightclubs, condo hotels, and mixed-use properties.

“We are thrilled to have Jeff join our team. He is a talented lawyer who further strengthens our capabilities and brings natural synergies to our group,” said Jim Butler, Chair of JMBM’s Global Hospitality Group. “Now Jeff can offer his clients assistance with important specialties such as ADA defense, cybersecurity, labor & employment (including union contract negotiations and union avoidance), land use, and litigation.”

Myers’ experience includes representing a national developer in the negotiation of a series of agreements for the development, management and licensing of a to-be-developed ultraluxury resort and spa in the Papagayo Peninsula region of Costa Rica; representing one of the largest hospitality REITs in the country from its inception through the acquisition, financing and management of a $1 billion portfolio of hotel assets; representing a major institutional developer in its collection of celebrity-chef curated restaurants for the Hudson Yards project in New York; and representing a sovereign investment company in connection with its investment and ownership of the largest privately funded mixed-use development in U.S. history, including all casino and gaming related structuring and licensing, and the negotiation of management and development agreements for each of the hotel and casino components.

CONTINUE READING →

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Advice from a Proposition 65 Compliance & Defense lawyer for hotels.

For many years, businesses operating in California have been plagued by “bounty hunter” and government lawsuits brought under Proposition 65 — the California law that requires warnings about hazardous substances. The technical disclosure requirements have bedeviled many legitimate businesses for some time. From our continuous interaction with members of the hotel industry, it appears to us that many are not aware of new requirements they must meet by August 30, 2018.

While the new regulations apply generally to all businesses in California, there are particular implications for hotels and restaurants given the nature of their operations. And if you are not in compliance by August 30, 2018, you can probably expect a lawsuit shortly thereafter. We expect these new requirements to stir up a lot of expensive litigation for the unprepared.

In this article, Jodi Smith, a senior member of JMBM’s Global Hospitality Group®, explains this significant development.

California Proposition 65 Warnings for Hotels
Required by August 30, 2018
by
Proposition 65 Defense Lawyer Jodi Smith

New Prop 65 regulations for hotels going into effect. The Safe Drinking Water and Toxic Enforcement Act of 1986 (better known as “Proposition 65” or “Prop 65”) requires companies conducting business in California to warn consumers prior to exposing consumers to specific chemicals that have been identified pursuant to Proposition 65 as being chemicals known to cause cancer or birth defects or other reproductive harm.  The Proposition 65 regulations were substantially revised in August 2016 and the new regulations go into effect on August 30, 2018.  The new warnings can be used now.  Given the complexity of the new warning requirements for hotels, getting a head start would be prudent.

What’s a hotel for Prop 65 purposes? The new regulations require the owner and/or operator of a hotel to determine which of a number of different types of warnings may be required under the new regulations.  “Hotel” is defined broadly to include “any type of transient lodging establishment, including but not limited to, hotels, motels, bed and breakfast inns, resorts, spas, ski resorts, guest ranches, agricultural “homestays”, tourist homes, condominiums, timeshares, vacation home rentals, and extended stay establishments in which members of the public can obtain transient lodging accommodations.”  (Title 27 California Code of Regulations (CCR) § 25607.32(a))

Warnings required for registration desk or online. The Proposition 65 warning must either (1) be provided on a sign posted at the hotel’s registration desk in no smaller than 22-point type in a location where it will be likely to be seen, read, and understood prior to the completion of the registration or check-in process, or (2) provided to the hotel guest in electronic (directly or via a hyperlink) or hard copy form in the same size type as other consumer information prior to, or during the registration or check-in process.  (27 CCR § 25607.32.(b))  In addition, if written or electronic consumer information is given to hotel guests during the registration or check-in process in any language other than English, the warning must be given in both English and that language.  (27 CCR § 25607.32(c)) CONTINUE READING →

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18 April 2018

It’s almost May, so our annual Meet the Money® Conference is almost here! JMBM’s Global Hospitality Group® will host the 28th year of our national hotel finance and investment conference May 7-9, 2018 at the Hyatt Regency LAX.

This must-attend event gives you access to plenty of efficient networking and the latest insights into industry trends and strategies.

The industry’s top hotel owners, developers, operators, brands, investors, lenders, and other capital providers come together every year at Meet the Money to share their expertise and explore opportunities. Our friendly environment makes it easy and comfortable to connect and negotiate deals.

We’re proud to have the participation of distinguished and knowledgeable speakers and sponsors from over 70 of the hotel industry’s top capital sources, brands, investors, developers, and consultants.

They’ll be offering their expertise on this year’s panel discussions and special presentations, including: CONTINUE READING →