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Los Angeles, CA – September 29, 2025 – Jeffer Mangels Butler & Mitchell LLP (JMBM) is pleased to announce that the Firm’s Hotel Law Blog was named to FeedSpot’s Top Ten Hotel Law Blogs for 2025. Selections were made from thousands of blogs on the web and ranked by relevancy, authority, social media followers, and freshness.

“We are honored to be recognized as one of the top hotel law blogs,” said Jim Butler, Chair of the Firm’s the Global Hospitality Group® and publisher of the Hotel Law Blog. “Our goal is to stay ahead of the curve, delivering timely, practical insights, and this recognition affirms the value of our work.”

JMBM’s Hotel Law Blog provides business and legal insights to hotel owners, developers, independent operators, and investors, covering critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. Topics also include hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.

About the Global Hospitality Group®

JMBM’s Global Hospitality Group® is a team of seasoned professionals who have helped clients around the world with more than 4,700 hospitality properties valued at more than $125 billion.

About JMBM

Jeffer Mangels Butler & Mitchell LLP is a full-service law firm committed to providing clients with outstanding results. From our offices in Los Angeles, San Francisco, and Orange County, we serve our clients’ needs worldwide. For more information about our attorneys and our services, visit JMBM.com.

NOTE: This press release and the sources referenced provide general information only–not legal advice. Consult a licensed attorney.

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Previously posted as a JMBM press release on September 11, 2025.

Sale will allow the historic Los Angeles restaurant to reopen

Los Angeles, CA – September 11, 2025 – Jeffer Mangels Butler & Mitchell (JMBM) recently represented the Richard J. Riordan estate in the sale of the Original Pantry Café in Downtown Los Angeles to real estate entrepreneur, Leo Pustilnikov.

JMBM partner Sheri Bonstelle led the transaction, handling the land use due diligence, negotiation and sale, and partner Caleb Gilbert oversaw the real estate contracts.

The Pantry Café is an historic restaurant at the corner of 9th and Figueroa streets in Downtown Los Angeles that first opened in 1924, and moved to its current location in 1950. It offered 24-hour a day service, and was known for never being closed from its opening until the Covid pandemic. The restaurant was purchased in 1981 by former Los Angeles Mayor Richard (Dick) Riordan, who obtained designation of the property as a Los Angeles Historic Cultural Monument in 1982, and owned and operated the location until his death in 2023.

“The Pantry is sort of like the story of LA,” Pustilnikov said in a statement. “It’s had its ups and downs, and hopefully, much like LA and much like Downtown, the reopening will boost the rebirth of Downtown with everything coming to it.”

About JMBM

Jeffer Mangels Butler & Mitchell LLP is a full-service law firm committed to providing clients with outstanding results. From our offices in Los Angeles, San Francisco, and Orange County, we serve our clients’ needs worldwide. For more information about our attorneys and our services, visit JMBM.com.

Published on:

12 August 2025
See how JMBM’s Global Hospitality Group® can help you.

Unlocking Value in Hospitality: The New Era of Hotel Mixed-Use Development in Qualified Opportunity Zones

By Guy Maisnik, Vice Chair of The Global Hospitality Group, Jeffer Mangels Butler & Mitchell, LLP

The One Big Beautiful Bill Act (OBBB) has fundamentally changed the landscape for real estate investment in America—permanently enshrining the Qualified Opportunity Zone (QOZ) framework and expanding the horizon for hotel mixed-use development. For developers, investors, lenders, and deal sponsors, the new OBBB regime offers unmatched certainty, flexibility, and opportunity—but it also demands rigorous compliance and strategic planning. Here’s a deep-dive narrative for industry professionals charting the future of hospitality-led community reinvestment.

I. The OBBB Revolution: OZ Permanency, Enhanced Incentives, and Hospitality 

With the OBBB’s passage, Opportunity Zones became a long-term pillar of U.S. tax policy. Gone is the uncertainty that once limited major capital flows. Instead, asset allocators—ranging from pension funds to private equity—can now underwrite horizon investments knowing key incentives like tax-deferral and gain exclusion are locked in.

Key Features for Hotel Projects 

  • Permanent OZ Program: No sunset. Sponsors can plan and phase large urban or resort projects without fear of the window closing.
  • Rolling Redesignation: New OZs will be proposed every decade, creating dynamic markets for future hospitality developments.
  • Rural OZ Boost: Rural hotels receive a 30% basis step-up after five years, and only need to improve 50% of their basis—a major win for resort and adventure destination sponsors.
  • Enhanced Transparency: With new annual reporting requirements, deal clarity is sharpened for institutional lenders, community stakeholders, and public-sector partners.

II. Structuring Hotel Mixed-Use Development for Maximum Opportunity

  1. Building for Compliance

Hotel projects are best structured as Qualified Opportunity Funds (QOFs) that invest in a Qualified Opportunity Zone Business (QOZB). This two-entity approach, favored by both tax counsel and institutional LPs, enables both property and active business income to qualify for OZ benefits.

  • Eligible Property: OZ programs allow owned and leasehold property, including real estate and movable FF&E, provided the “original use” or “substantial improvement” tests are satisfied.
  • Active Trade or Business: Hospitality operations must generate at least 50% of gross income from the property in the zone. Passive triple-net leases or heavily outsourced arrangements risk compliance.
  1. Navigating Substantial Improvement, Phasing, and Mixed-Use Complexities
  • Substantial Improvement: Most historic conversions (urban hotels, adaptive reuse) require doubling the basis of the building portion—except in rural OZs, where only a 50% increase is mandated.
  • Original Use Projects: New ground-up hotels are straightforward—they qualify from day one under “original use.”
  • Mixed-Use Allocation: Sponsors must allocate cost basis between hotel, retail, residential, conference, and parking assets—ensuring each meets applicable OZ standards.
  • Phased Construction: Treasury regulations recognize the reality of multi-phase developments; QOZBs may deploy capital under a 31-month working capital safe harbor, extendable for government delays.

III. Financing Hotel Projects: Capital Stacks, Lender Comfort, and Bonus Depreciation

  1. Typical Capital Stacks

Hotel OZ projects feature hybrid capital structures:

  • QOF Equity: Often the anchor, composed of rolled capital gains from investors seeking both tax deferral and upside.
  • Conventional Debt: Banks, CMBS lenders, and sometimes HUD offer construction and takeout financing, provided strict OZ compliance is maintained.
  • Preferred Equity/Mezzanine: Used to round out the stack, sometimes from EB-5 investors or public sources such as TIFs.
  • State and Local Incentives: Frequently paired with OZ investments for historic or catalytic hospitality projects.
  1. Lender Friction and Solutions

Lenders scrutinize OZ hotel projects for:

  • Debt Service Coverage: Underwriting must account for development timelines and ramp-up periods—a point of differentiation with hospitality.
  • Legal Opinions: Lenders often require tax counsel opinions attesting to OZ structure integrity and risk mitigation (notably around substantial improvement and safe harbor planning).
  • Transparency: Annual asset, impact, and compliance reporting (post-OBBB) is now critical for both institutional investors and lenders evaluating credit risk.
  1. Bonus Depreciation

Sponsors enjoy 100% first-year bonus depreciation for eligible tangible property acquired and placed in service after January 19, 2025—a benefit magnified for hotels, which have significant FF&E components. Property acquired before this date is subject to lower, phased-down deduction rates. Smart structuring and cost segregation studies allow rapid recovery of investment and stronger early-stage distributions.

Smart structuring and cost segregation studies allow rapid recovery of investment and stronger early-stage distributions.

IV. Investor Dynamics: Returns, Waterfalls, and Pitching Post-OBBB 

  • Return Profiles: Hospitality deals differ from multifamily or office—exhibiting more “J-curve” effects (delayed stabilization, upside via brand/repositioning, diverse cash flow streams).
  • Investor Benefits: Hotel OZ opportunities as:
    • Inflation-hedged, with dynamic income potential (room rates, F&B, events)
    • Community anchors driving local employment and revitalization
    • Vehicles for permanent tax benefit—especially appealing post-OBBB
  • Preferred Returns & Waterfalls: Proper structuring preserves upside for sponsors but ensures “tax attributes” (deferral, step-ups, exclusions) flow to eligible LPs.

V. A Real-World Hotel QOZ Case Study

Imagine a southwest city’s historic main street. The Project is a classic bank-to-luxury-hotel conversion (with integrated co-working, food hall, and community event space):

  • Site & Entitlement: Navigated brownfield remediation and landmark approvals (Year 1).
  • Capital Stack: $15M QOF equity, $20M construction loan, $4M preferred equity from an EB-5 syndicate, $3M TIF grant.
  • Structure: Two-entity (QOF + QOZB) structure; phased rollout leveraging 31-month safe harbor and bonus depreciation.
  • Operation: Multi-brand soft-flag arrangement with independent F&B vendors, maintaining “active business” status for QOZB.
  • Exit Scenarios: (a) Bulk sale to PE after 10 years; (b) REIT roll-up; (c) refinance and hold for continuous cash flow with tax-free treatment for investors.
  • Impact: 300+ construction and operations jobs, tourism revenue, triple-digit occupancy premium in Year 3.

VI. Sponsor’s Compliance Checklist: Hotel QOZ Project

Compliance Area Key Standard/Requirement Best Practice
Reinvest Gains 180-day deadline from realization Calendar/procedure tracking
QOF Formation US entity; Form 8996 self-certify Central file/annual checklist
QOZB Operations 70% tangible property, 50% income Site mapping, business plans
Substantial Improvement Double (or 50%) basis in 30 months Construction timeline
Working Capital 31-month plan, extendable for delays Written plan, track milestones
Reporting Annual impact, compliance reporting Data systems, CPA engagement
Depreciation 100% bonus for eligible property Cost segregation study
Exit/Waterfall Exit model, tax analysis for LPs PPM, scenario planning


VII. Key Legal and Regulatory Sources

  • Internal Revenue Code §§ 1400Z-1, 1400Z-2.
  • Treasury Regulations §1.1400Z2(a)-1, §1.1400Z2(d)-1 and final Treasury “QOZ” regulations (2019, 2020).
  • IRS Notices (e.g., 2021-10; working capital safe harbor).
  • OBBB legislative text and summaries (as finalized).
  • Industry guides on FF&E treatment, depreciation, and compliance architecture.

Conclusion: Seizing the Next Decade of OZ Hospitality

With permanency, expanded incentives, and heightened transparency, OBBB has set the stage for a decade of hospitality-led Opportunity Zone development. Sponsors prepared to rigorously document, diligently monitor, and creatively structure their hotel mixed-use projects will unlock attractive returns—for investors, lenders, local communities, and their own firms.

Industry leaders: Now is the moment to stake your claim in the next generation of transformational real estate, powered by federal support but dependent on vision, discipline, and innovative execution.

 


Tphoto__2883799_jim-butler-web-1-300x300his is Jim Butler, author of www.HotelLawBlog.com and founding partner of JMBM and JMBM’s Global Hospitality Group®. We provide business and legal advice to hotel owners, developers, independent operators and investors. This advice covers critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. We also have compelling experience in hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.

JMBM’s Global Hospitality Group® has been involved in more than $125 billion of hotel transactions and more than 4,700 hotel properties located around the globe. Contact me at +1-310-201-3526 or jbutler@jmbm.com to discuss how we can help.


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JMBM’s Trusts & Estates Group’s Basic Guide to Estate Planning has been updated for 2025. Continue reading for more information about the updates for 2025.

Estate Planning for 2025: New Applicable Exclusion Amount

JMBM’s Basic Guide to Estate Planning has been updated for 2025 and is available for immediate download here: JMBM’s 2025 Guide. The Guide addresses important estate planning issues and introduces some of the principal estate planning techniques that can provide solutions to these issues. Updates for 2025 include the following:

  • The amount that an individual can cumulatively transfer free of tax during lifetime and at death (to a recipient other than a spouse who is a U.S. citizen and/or certain charitable organizations) is $13,990,000.
  • The generation-skipping transfer (“GST”) tax exemption is also $13,990,000 per individual.
  • In addition to the exemptions described above, every individual can make gifts during life of up to $19,000 per recipient per year without paying gift tax.

If you would like to discuss how these changes affect you and your family, ways in which you might take advantage of the increased exemption amounts, or any other aspect of your estate plan, please contact us.

We suggest you review your estate plan with your attorney every three years to ensure it continues to meet your goals.

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About JMBM Trusts & Estates Group

JMBM’s Trusts & Estates Group focuses on estate planning, wealth transfer planning, trust administration and the resolution of trust disputes. Our firm has one of the most active trusts and estates practices in California and our clients include individuals and families, and their business interests.

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This update is provided to our clients, business associates and friends for informational purposes only. Legal advice should be based on your specific situation and provided by a qualified attorney.

 

 


Tphoto__2883799_jim-butler-web-1-300x300his is Jim Butler, author of www.HotelLawBlog.com and founding partner of JMBM and JMBM’s Global Hospitality Group®. We provide business and legal advice to hotel owners, developers, independent operators and investors. This advice covers critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. We also have compelling experience in hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.

JMBM’s Global Hospitality Group® has been involved in more than $125 billion of hotel transactions and more than 4,700 hotel properties located around the globe. Contact me at +1-310-201-3526 or jbutler@jmbm.com to discuss how we can help.


How can we help? Brochure Credentials Photo Gallery

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W-7-Butler-Jim-Edit-1024x683

The 2024 Lodging Conference in Phoenix, AZ, emerged as a pivotal gathering for industry leaders, embodying a sense of cautious optimism as the sector navigates its post-pandemic evolution. This year’s discussions transitioned away from the lingering impacts of COVID-19, shifting towards a more forward-thinking approach that emphasized analytics-driven decision-making and a renewed focus on company culture. Many valuable topics were discussed, including the balance between technology and the personal touch in hospitality, as well as emerging investment trends.

Key Themes and Discussions

Panel discussions showcased a variety of perspectives on the changing market landscape. Themes included a sense of anticipated clarity following the upcoming elections, alongside a wave of refinancing and ongoing property improvements that are driving increased deal activity. With approximately $5.8 billion in U.S. hotel securitized loans approaching repayment, the market is ripe for transactions. Several panelists echoed this optimism, highlighting a particularly bright investment horizon.

Amid the focus on financial strategies and market predictions, the conference also delved into personal leadership development. CEOs shared their experiences on fostering better leadership within their organizations. Some panelists emphasized the importance of active listening over hasty problem-solving, while others highlighted the need for leaders to prioritize their time and cultivate meaningful connections. This renewed focus on leadership strategies underscored a broader trend in the industry: the recognition that effective leadership is not just about making decisions but about building a collaborative and supportive company culture.

As the conference drew to a close, the dominant sentiment was one of anticipation. Industry leaders are preparing for what many expect to be a “snowball effect” in deal-making, particularly as the Federal Reserve has started to lower interest rates, paving the way for a more dynamic market. The consensus was that 2025 holds promise, especially for those prepared to adapt and innovate amidst changing economic conditions.

Reflecting on the Experience

This year’s conference was not only well-organized but also incredibly productive. This is a thrilling time for the industry, with transformative change on the horizon. Many attendees were buzzing about the recent interest rate cuts and how they signal a brighter future for hotel investments.

Our team walked away with valuable perspectives into the surge in hotel deal activity, the enduring strength of extended stay demand, and the delicate balance of integrating technology while preserving an essential personal touch with guests. Most importantly, we had the wonderful opportunity to reconnect with old friends and forge new relationships, marking another year of resounding success at the Lodging Conference.

Here are some photos from the conference, capturing the connections and conversations that made this gathering memorable. We can’t wait for next year’s event!

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Published on:

JMBM’s Basic Guide to Estate Planning has been updated for 2024 and is available for immediate download here: JMBM’s 2024 Guide. The Guide addresses important estate planning issues and introduces some of the principal estate planning techniques that can provide solutions to these issues. Updates for 2024 include the following:

  • The amount that an individual can cumulatively transfer free of tax during lifetime and at death (to a recipient other than a spouse who is a U.S. citizen and/or certain charitable organizations) is $13,610,000.
  • The generation-skipping transfer (“GST”) tax exemption is also $13,610,000 per individual.
  • In addition to the exemptions described above, every individual can make gifts during life of up to $18,000 per recipient per year without paying gift tax.

If you would like to discuss how these changes affect you and your family, ways in which you might take advantage of the increased exemption amounts, or any other aspect of your estate plan, please contact us.

We suggest you review your estate plan with your attorney every three years to ensure it continues to meet your goals.

About JMBM Trusts & Estates Group
JMBM’s Trusts & Estates Group focuses on estate planning, wealth transfer planning, trust administration and the resolution of trust disputes. Our firm has one of the most active trusts and estates practices in California and our clients include individuals and families, and their business interests.


Picture of Jim Butler

This is Jim Butler, author of www.HotelLawBlog.com and founding partner of JMBM and JMBM’s Global Hospitality Group®. We provide business and legal advice to hotel owners, developers, independent operators, and investors. This advice covers critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. We also have compelling experience in hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.

JMBM’s Global Hospitality Group® has been involved in more than $125 billion of hotel transactions and more than 4,700 hotel properties located around the globe. Contact me at +1-310-201-3526 or jbutler@jmbm.com to discuss how we can help.


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Become a speaker or sponsor for Meet the Money®!

For details, please contact Laura Bailey at LBailey@jmbm.com.

 

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Published on:

13 May 2014

Dear Friends,

We apologize for a confusing blog notification you may have received from us today that was in Mandarin Chinese. Here’s what this is all about.

We are launching a new Chinese Hotel Law Blog

  • By the end of May 2014, JMBM’s Global Hospitality Group® and Chinese Investment Group® expect to launch the Chinese Hotel Law Blog which will be in Mandarin Chinese to better serve our Chinese clients.
  • We have been busy translating the most important articles from Hotel Law Blog into Mandarin, and working on the web site structure for Hotel Lawyer and Hotel Law Blog to support this new feature for Chinese readers to access these articles in Mandarin Chinese.
  • We did not mean to send you the blog notification in Chinese today. That was a mistake. Someone hit the wrong button. But it was a real message and was from us . . . It is not malicious or spam . . . just a little premature and unintended.

CONTINUE READING →

Published on:

30 May 2012

Hotel ADA defense and compliance lawyer: ADA litigation over website accessibility is poised to explode.

How many lawsuits or claims have been filed by private plaintiffs and the Department of Justice (DOJ) against property owners under the Americans with Disabilities Act or ADA?

The latest figures show that more than 15,500 such ADA lawsuits or claims have been filed. And the pace is about to pick up in a big way.

My partner Marty Orlick, who heads JMBM’s ADA compliance and defense team, has defended more than 500 ADA claims all over the country. Marty warns that we may be about to see a tidal wave of Cyber Accessibility claims — lawsuits about reservation systems, hotel websites and related communications facilities.

Why could there be a big slug of these ADA lawsuits over websites? Marty says that there are several reasons:

  1. First, these lawsuits will be very easy for plaintiffs to work up. The plaintiffs do not need any site inspection, experts or research. They can just surf the web from the convenience of their homes or offices. Marty says the “surf by” complaints could dwarf the “drive by” ADA lawsuits that looked for missing accessible parking spaces and other readily visible shortcomings.
  2. Second, some owners and operators have not been paying enough attention to this issue. They have had their attention elsewhere, such as on operating fundamentals, labor costs and ADA pool lift requirements.
  3. Both the DOJ and private plaintiffs have had tremendous success with website accessibility lawsuits under the ADA (see the discussion below and related articles about the Hilton International consent decree and the Charles Schwab class action case), and they are growing impatient for compliance.
  4. In addition, a lack of clear industry standards and misinformed marketing staff have lulled some into thinking they are already in compliance when that is not so.
  5. Finally, some owners and operators have not recognized ADA compliance for the high priority it demands. They have not appreciated how costly ADA litigation and defense can be, and how compliance is so much cheaper than defense.

So here are some timely tips from Marty Orlick, a pro who really understands the ADA compliance and defense. . .

CONTINUE READING →

Published on:

Date: May 7-9, 2012
Venue: Sheraton Gateway Los Angeles Hotel
6101 W. Century Boulevard
Los Angeles, CA  90045
(310) 642-1111
Practices: Global Hospitality Group®
Industries: Hospitality
Registration Fees: $950.00

Gateway to Hospitality Finance

Meet the Money® is the gateway to hospitality finance, connecting consumers and providers of debt and equity capital for hotel deals.

Join the Industry Leaders

Meet the Money® 2012 will feature nearly 100 industry leaders in several highly focused presentations and panels, discussing topics such as:

  • State of the industry
  • EB-5 money to finance new development and construction
  • Who has financing now
  • Distressed assets and special servicers
  • New ADA Standards – how to avoid lawsuits and DOJ investigations
  • Profiting in troubled times
  • Insights about fast-emerging trends
  • and many more

Conference Agenda

Monday, May 7, 2012

  7:00 pm – Wine mixer for early arrivals

Tuesday, May 8, 2012

  7:45 am – Opening remarks
12:30 pm – Lunch
  5:30 pm –  Grand Welcome Reception

Wednesday, May 9, 2012

  9:00 am – Conference resumes
12:00 pm – Lunch
  2:00 pm – Adjourn

Register now for Meet the Money®

Registration for the conference is $950.

Accommodations

Meet the Money® will be held at the Sheraton Gateway Los Angeles hotel, 6101 W. Century Blvd, Los Angeles, CA 90045. Make your hotel reservations by calling 310.642.1111.  A special room rate of $139 is available by mentioning Meet the Money.  The room block expires at
5:00 pm on April 16, 2012, so make your hotel reservation early.

Sponsorships

Sponsorship opportunities are available.  Click here for the sponsorship form which describes the many benefits of sponsorship.  For sponsorship inquiries, contact Jessica Hekmatjah at JH7@jmbm.com or call her at 310.201.3567.

Sponsors

For a continuously updated list of conference sponsors, click here.

Meet our Speakers

For a frequently updated list of speakers, click here.

Cancellation policy: Should you be unable to attend Meet the Money® 2012, a prompt refund less an administrative fee of $200 will be made for cancellations received in writing before April 1, 2012. No refunds will be made thereafter. Credit may be applied to the 2013 conference, which credit will expire on May 31, 2013. Substitutions may be made up to 72 hours in advance of the conference. The program and individual speakers are subject to change without notice.

Contact Information