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Hotel Lawyers -- featured subjects and articles
Meet the Money® 2014

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.

Published on:

21 September 2015

Click here for the latest articles on EB-5 Financing. 

The Global Hospitality Group® is best known for its expertise in connection with hotels and resorts. We also have an active restaurant practice, and like a hotel, a restaurant is an operating business integrally intertwined with special purpose real estate. We frequently advise restaurant owners and operators on labor and employment, ADA, management, and finance and licensing issues, and we have a particular expertise relating to celebrity chef deals.

Senior Global Hospitality Group® member David Sudeck recently participated in a roundtable discussion about the food and beverage industry in Los Angeles, published in the Los Angeles Business Journal. The following discussion about licensing issues, EB-5 and crowdfunding investment in restaurant projects, gift card and loyalty programs and tax planning strategies is based on the roundtable and includes some clarifications and updates.

 

The Food & Beverage Industry in Los Angeles: A Roundtable Discussion
Supplement to the Los Angeles Business Journal

The food and beverage industry is unique in many ways. And here in Los Angeles, where we have some of the best dining and food-for-purchase options in the nation, there may be an even more finely tuned set of rules for success. Stir in an unpredictable economy and you’ve got a sector of Southern California business that continues to evolve faster than most. To make some sense of this exciting and unpredictable realm, the Los Angeles Business Journal turned to some of the leading experts in the region – from the financial, legal and business perspectives – to get their diverse insights and assessments regarding the current state of the industry that Angelenos most certainly couldn’t live without!

CONTINUE READING →

Published on:

09 September 2015

Click here for the latest articles on EB-5 Financing. 

Editor’s note: The EB-5 program has been renewed! Congress completely shelved all the proposals discussed below, and instead decided to continue the program, without any change, through September 15, 2016. 

For the current status of the EB-5 financing program, see “EB-5 Immigrant Visa program extension signed into law — without any changes. EB-5 financing continues for new development projects.

EB-5 is at a critical renewal point

The next 3 weeks are going to be crucial for the EB-5 industry as the current legislation sunsets on September 30, 2015. While the consensus is that this important program will be renewed, and perhaps made permanent, there are lots of currents circulating about possible changes in the program.

We want to share with you some keen insights we recently received.

EB-5 update and insights from an industry insider

Below is the full text of a letter recently sent to industry colleagues by Pat Hogan, President, CMB. Pat is one of the leading proponents of EB-5, and is also a founder and board member of the IIUSA (Invest In the USA) which is the national industry trade association for the EB-5 Regional Center Program.

Greetings,

I wanted to share my thoughts with you after having recently visited no less than 60 Congressional and Senatorial offices within the last 40 days. I also just attended the American Immigration Lawyers Association (AILA) EB-5 Investors Summit this past weekend in Las Vegas.

CONTINUE READING →

Published on:

02 September 2015

Blocking Wi-Fi connections is “patently unlawful”

On August 18, 2015, the FCC announced a $750,000 civil penalty and formal Consent Decree with Smart City Holdings for blocking consumers’ personal Wi-Fi access at various convention centers, meeting centers and hotels around the United States. Smart City is an internet and telecommunications provider for such facilities, and had been blocking personal mobile “hotspots” being used by convention and meeting attendees.

Apparently referring to the $80 daily fee charged by Smart City for use of its Wi-Fi at the events, Travis LeBlanc, Chief of the FCC’s Enforcement Bureau said, “It is unacceptable for any company to charge consumers exorbitant fees to access the Internet while at the same time blocking them from using their own personal Wi-Fi hotspots to access the Internet.”

The FCC Enforcement Chief went on to say, “All companies who seek to use technologies that block FCC-approved Wi-Fi connections are on notice that such practices are patently unlawful.”

The FCC is focused on preventing Wi-Fi blocking

The FCC action in the Smart City case really emphasizes how serious the FCC is about stopping the practice of hotels and related facilities from blocking consumer hotspots in order to sell their own more expensive access to the internet.

Starting with high-profile investigation and settlement with Marriott International last year, the FCC has taken the following steps: CONTINUE READING →

Published on:

31 August 2015

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

Massive data breaches affect hotels and their legal responsibilities. As unauthorized hacking of confidential data explodes in volume and seriousness, minimum expected standards are evolving that hoteliers and others must follow. Interestingly, the latest guidelines are provided in an August 24, 2015 appellate court decision involving Wyndham Worldwide as if to emphasize that these rules (really) apply to the hotel industry. How did this case arise? What are some basic steps that everyone with confidential data is expected to take? What happens if they don’t?

In the article below, my partner Bob Braun, explains the current situation and what it means to our industry.
FTC vs. Wyndham Worldwide – What it Means for Hotel Owners

by
Bob Braun, Hotel Lawyer and Data Security Advisor

Background on the case

On August 24, 2015, the Third Circuit United States Court of Appeals issued its ruling in the case FTC v. Wyndham Worldwide Corporation. The case was highly anticipated by the data security community generally for its expected ruling on the authority of the Federal Trade Commission to regulate data security standards, but nowhere was the anticipation more keen than in the hospitality industry. After all, this decision didn’t deal with retailers, banks or dating sites – it addressed a major hotel player and, by implication, all operators, brands and owners in the industry.

We know that cybercrime is big. In 2014, there were 42.8 million detected security incidents (and, most likely, many more that were never discovered). Estimates of annual cost of cybercrime to the global economy ranges from $375 billion to as much as $575 billion as companies face increased vulnerability, ranging from greater technology available to cybercriminals and new types of cybercrime, like crypto-ransom. CONTINUE READING →

Published on:

24 June 2015

Bill Sipple, Executive Managing Director of HVS Capital, speaks in the video below about activity in different markets, limited service properties, and whether rising interest rates will have an effect on transactional activity.

Bill sat down with Bob Braun, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video.

Bill Sipple discusses hospitality market activity and interest rates - Meet the Money® conference


Bob Braun: Hi, I’m Bob Braun. I am a Partner at Jeffer Mangels Butler & Mitchell. I’m here at Meet the Money® 2015, our 25th anniversary. I’m here with Bill Sipple, who is the Executive Managing Director of HVS Capital. Bill, thanks for coming by and talking with us.

Bill Sipple: It’s good to be here, thanks. CONTINUE READING →

Published on:

23 June 2015

Jack Westergom, Managing Director of Manhattan Hospitality Advisors, discusses hotel operating agreements, asset management, and the RFP process in the video below.

Jack spoke with David Sudeck, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video.

Jack Westergom discusses hotel operating agreements, asset management and cycles - Meet the Money®


David Sudeck: I’m David Sudeck. I’m a senior attorney with Global Hospitality Group® at Jeffer Mangels Butler & Mitchell. We’re here at the 25th Annual Meet the Money® Conference. I’m here with Jack Westergom, Managing Director of Manhattan Hospitality Advisors. Welcome.

Jack Westergom: Thank you. CONTINUE READING →

Published on:

22 June 2015

US Supreme Court voids Los Angeles ordinance requiring hotel operators to turn over guest records on demand

In a 5-4 opinion rendered on June 22, 2015, the United States Supreme Court held that a Los Angeles municipal code provision violates the US Constitution’s Fourth Amendment prohibition on unreasonable search and seizures. The invalidated LA Code provision requires hotel operators to make guest records available to the police upon request. This case may be significant because many cities throughout the country have similar laws, and they are now all constitutionally suspect. On the other hand, for reasons discussed below, most hotel operators will probably not care to challenge a records request, and there are expedient alternatives available to cities and police, including administrative subpoenas. See below to access the full Supreme Court opinion in City of Los Angeles v. Patel.

Read on to learn more about the Los Angeles City code’s  provisions, the history of the challenge in the District Court, appeals to the Ninth Circuit, and the US Supreme Court’s decision. CONTINUE READING →

Published on:

22 June 2015

Vail Brown, Vice President of STR, discusses all-time highs in the hospitality market for multiple metrics, her predictions for the next few years, and STR’s expansion into food and beverage analysis in the following video.

Vail spoke with David Sudeck, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video below.

Vail Brown discusses all-time highs in hotel supply growth, and other metrics - Meet the Money®


David Sudeck: I’m David Sudeck, I’m with Jeffer Mangels Global Hospitality Group. We’re here at the 2015 Meet the Money® Conference, which is the 25th Annual Meet the Money® Conference. We’re with Vail Brown, Vice President of STR. Welcome.

Vail Brown: Thank you. CONTINUE READING →

Published on:

19 June 2015

Stephen Rushmore, Jr., President and CEO of HVS, speaks in the video below about hotel values in the next few years, new development, and brand proliferation.

Stephen spoke with David Sudeck, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video.

Stephen Rushmore, Jr. talks about hotel values and brand proliferation - Meet the Money®


David Sudeck: We are at the 25th Annual Meet the Money® Conference 2015. I am happy to be here with Stephen Rushmore, President and CEO of HVS. Welcome, Stephen.

Stephen Rushmore, Jr.: Good to be here. Thanks. CONTINUE READING →

Published on:

18 June 2015

Deric Eubanks, Chief Financial Officer of Ashford Hospitality Trust, discusses why now is a great time to buy hotels, which segment provides the best opportunities, and how supply growth will affect the hospitality industry over the next few years.

Deric sat down with Bob Braun, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video below.

Deric Eubanks talks about the hottest hospitality segments for investors - Meet the Money®


Bob Braun: Hi, I’m Bob Braun. I am a Partner at Jeffer Mangels Butler & Mitchell and I’m a senior member of our Global Hospitality Group, and I’m here with Deric Eubanks, who is the CFO of Ashford Hospitality Trust. We wanted to take a chance to talk about what you see in the market, and importantly, how Ashford is reacting to what you see in the market.

Deric Eubanks: Sure. CONTINUE READING →

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