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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:

10 October 2012

Where are we and where do we go from here?

Vail Brown is Vice President, Global Business Development & Marketing, with Smith Travel Research, and recently presented a comprehensive report on the hotel industry performance at the Phoenix Lodging Conference, entitled ” Statistics, Trends and Projections for 2013 & Beyond.” See HotelLawyer.com at for the full presentation or click here.

All Smith Travel presentations can always be found at www.hotelnewsnow.com. Click on “Hotel Data Presentations”. We appreciate their consent for us to post the presentation on HotelLawyer.com as well.

We caught up with Vail after the Phoenix Lodging Conference and asked her what she thought were the most notable developments at this moment. She gave us three key observations from STR’s standpoint as it relates to the U.S. hotel performance data through year to date through August 2012.

CONTINUE READING →

Published on:

9 October 2012

JMBM’s Hotel Lawyers Post 500th Blog
HotelLawyer.com and Hotel Law Blog are resources for hotel owners and lenders

LOS ANGELES — October 8, 2012. Jim Butler, Chairman of the Global Hospitality Group® at Jeffer Mangels Butler & Mitchell LLP (JMBM) announced today that the Group posted its 500th blog on the Hotel Law Blog.

Launched in 2006 for hotel owners, developers, investors and lenders

Jim Butler founded and launched HotelLawBlog in 2006 — the first of its kind to focus solely on hotel law. It was designed particularly for the needs of hotel owners, developers, investors and lenders. Through the blog, JMBM’s hotel lawyers offer legal and business perspectives about trends in the hospitality industry, challenges in hotel operations, and insights on other important industry issues.

CONTINUE READING →

Published on:

9 October 2012

Phoenix rising? Sentiment at the Phoenix conference?

Phoenix-12C-thumb

Please forgive the play on words, but given the location of The Lodging Conference and the continuing ascent of lodging industry fundamentals, I was simply unable to restrain myself on the title of today’s post. I am also an ardent student of mythology, so once I looked up “phoenix rising” in Wikipedia, I had to go with the title. My “research” on this subject is at the end of this article.

But the metaphor may be appropriate. Harry Javer and Morris Lasky have done it again. Another great annual event at the Arizona Biltmore, with more than 1,400 attendees, matching the all-time record set in 2007. I have usually found that conference attendance is something of a barometer of the mood in the lodging industry, so this showing bodes well.

What is the take of the lodging industry “think tank” on the state of the industry?

Three times a year, the Lodging Industry Investment Council (“LIIC” pronounced “lick”) gathers leaders of the industry for formal think tank sessions on various topics of importance. The approximately 70 members of LIIC represent approximately $20 billion of hotel properties from all segments and locations. The most recent meeting was held last week in conjunction with The Lodging Conference.

I am privileged to be one of the three co-chairs of the Lodging Industry Investment Council, along with Mike Cahill and Sean Hennessey. Mike is CEO and Founder of Hospitality Real Estate Counselors or HREC based in Denver, Colorado, and Sean is President of Lodging Advisors LLC in New York City.

After a special State of Industry briefing by Vail Brown of Smith Travel Research, and a robust discussion of what the LIIC members are experiencing right now, Mike Cahill provided this summary of his take on the environment.

CONTINUE READING →

Published on:

7 October 2012

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

Hotel Lawyer on hotels’ liability for failure to protect hotel guests personal identities

My partner Robert Braun advises hotel owners in a wide range of operational issues, including information management. Because of the ubiquitous use of credit cards by hotel guests during a stay, as well as the growing demand for WiFi availability, hotels have been increasingly targeted by identity thieves. In his article below, Bob explains how hotels’ liability for this new type of guest security has grown and what hotels can do to protect their guests’ identities.
Hotel Liability for Guest Information and Identity
What you need to know
by
Robert E. Braun | Hotel Lawyer

A version of this article was first published in the September 21, 2012 issue of Hotel Business and is reprinted with permission.

Not too long ago, keeping guest information safe was a fairly straightforward process – perhaps the most innovative development was providing an in-room safe for valuables. This approach made sense at the time, when guest security was a matter of securing people and their physical possessions.

The industry now recognizes that hotel guests have valuables to protect that go far beyond watches and wallets, or even laptops and iPads – – perhaps the most valuable information a hotel guest has is his or her identity, and unless a hotel actively safeguards it, those valuables are at risk. The ubiquity of credit card, wireless internet and other options, while essential to hotel operations, is also a source of insecurity.

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Published on:

19 September 2012

JMBM’s Global Hospitality Group® releases 2nd Edition of The HMA Handbook,
Hotel Management Agreements for hotel owners, developers, investors and lenders

LOS ANGELES–The Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP (JMBM) today announced the publication of the 2nd edition of The HMA Handbook, a practical guide for hotel owners, developers, investors and lenders negotiating, re-negotiating or terminating hotel management agreements (HMAs).

Co-authored by JMBM’s Global Hospitality Group® Chairman, Jim Butler and Partner and Senior Member of the Group, Robert E. Braun, the 1st edition of The HMA Handbook was released in March 2011 to an enthusiastic readership, evidenced by thousands of requests for the electronic book.

Taken from content available on the Hotel Law Blog, the new and expanded 2nd edition of the HMA Handbook adds 5 new chapters of the practical advice readers have come to expect from JMBM’s Global Hospitality Group®, including:

  • 10 tips for negotiating a hotel management agreement
  • An update on HMA litigation and fiduciary duties
  • Case studies on the terminations of the Waikiki Edition and Turnberry Isle hotel management agreements

CONTINUE READING →

Published on:

29 August 2012

JMBM’s Chinese Investment Group® has been very busy the past few years. Our team of lawyers represents the interests of Chinese investors who are purchasing or building hotels in the United States. We also represent hotel developers seeking to take advantage of the inbound foreign investment to capitalize their projects — whether through the EB-5 investment program or foreign direct investment.

In the EB-5 area alone, we have worked on more than 40 projects under the EB-5 investment visa program throughout the U.S., most of which are projects made possible with Chinese investment capital.

Here is a recap of some current events involving our Chinese Investment Group® and Chinese investors.

CONTINUE READING →

Published on:

24 August 2012

Hotel Lawyer on card processing fees.

The financial reforms following in the wake of the banking mess brought new regulations on the use and charges for credit and debit cards. There may be some benefits here for hoteliers, but there certainly are some decisions to make.

In addition to all the work he does on hotel management agreements and hotel franchise agreements, my partner Robert Braun represents a number of merchant card processors, banks and merchants in structuring credit card processing arrangements, both within the United States and internationally.

Today, he shares some of his insights on the recent legal changes in laws on card processing and the potential impact on the hotel industry.
Credit Card Fees and the Hospitality Industry
Impact of the Durbin Amendment
by
Robert E. Braun | Hotel Lawyer

Dodd-Frank affects hotels and other merchants

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 certainly sparked fierce debate about government regulation, consumer choice, innovation and entrepreneurship. The Durbin Amendment, a last-minute addition to the Dodd-Frank Act, drastically lowers swipe fees – the fee charged to merchants every time a customer pays with plastic – on debit cards issued by big banks, cutting into the banks’ revenue while, presumably, lowering costs for merchants and therefore consumers. The reduction in fees was significant: the Amendment reduced fees to 24 cents from a previous average of 43 cents, according to a Federal Reserve Board report.

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Published on:

10 August 2012

Hotel restructuring, workouts, receiverships and bankruptcy. The art of heavy lifting. Because bankruptcy lawyers tend to stay out of the limelight, we were pleased when my partner, Bob Kaplan — a superb bankruptcy lawyer and a senior member of the Global Hospitality Group® — was featured in the recent Northern California Super Lawyers® Magazine. Bob is the kind of lawyer who gets the best results for his clients in the least possible time, and he is not the kind of lawyer to toot his own horn. However, the work he does for our clients is critical to their success, and the expertise he brings to a troubled hotel can add significant value for all players.

For a glimpse into the high stakes work of commercial bankruptcies, please read this article about a great partner and friend, Bob Kaplan. It describes what we do best at the Firm — take care of clients and deliver results.

CONTINUE READING →

Published on:

1 August 2012

Buying a hotel — the Hotel Purchase Agreement documentation and process.

The Hotel Purchase Agreement documentation and process is where fortunes can be won or lost. The hotel lawyers of JMBM’s Global Hospitality Group® have decided to share some practical tips we have gleaned over the past 25 years from more than $87 billion of hotel transactions. Initially, these insights will be published as articles on the Hotel Law Blog at www.HotelLawyer.com and then they will be assembled into the HOW TO BUY A HOTEL handbook for our “We wrote the book™” series, much like the HMA Handbook and the Lenders Handbook for Troubled Hotels (see Resource Center at HotelLawyer.com for free copies).

Here is our second contribution on the “Buying a Hotel” series. . .

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Published on:

18 July 2012

There is nothing more important to the value and financial success of your hotel than selecting the right operator, and getting a management agreement with reasonable terms.

At a recent meeting in Los Angeles, my partner and Hotel Lawyer Robert E. Braun of JMBM’s Global Hospitality Group® moderated a panel of hotel industry leaders on some of the key issues owners should consider in selecting a new hotel operator.

The panelists included Patrick Bajdek of Carlson Rezidor Hotel Group, Craig Mance, from Hilton Hotels, Rich Musgrove from HotelAVE, Larry Somma of Hyatt Hotels, and Sam Winterbottom from Grubb & Ellis.

Below, Bob gives his top 5 takeaways from the panel. . .

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