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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:

20 February 2014

Hotel Lawyer with some great information for our friends who want to know more about how to buy a hotel.

Bruce Baltin and I are very excited to announce the release of a publication that has been in the works for many years (see below). As most of you know, Bruce Baltin is Senior Vice President of PKF Consulting. He has been a long-time friend, and great resource for help on anything involving the hotel industry.

The name of our just-released publication is:


How to Buy a Hotel:

A Detailed Overview of the Hotel Acquisition Process

As the title suggests, this publication is an “overview.” However, at almost 30 pages, it is quite a detailed overview of the entire hotel acquisition process.

CONTINUE READING →

Published on:

17 February 2013

Hotel Lawyer on buying hotels

Our hotel lawyers spend a big part of their time helping clients identify and vet attractive hotel acquisition targets, and then get them under contract, run a thorough (but fast) due diligence, arrange financing and execute on the purchase. Often there is a lot of follow up work in repositioning the property or cleaning up some old problems.

But one of the perennial questions we hear from people is, “Is this a good time to buy a hotel?”
A little more than 2 years ago, my partner Guy Maisnik wrote an article on this very subject. It was called “So you think you want to buy a hotel?” That article has been one of our best-read pieces on Hotel Law Blog, and similar questions keep bouncing around. So we persuaded Guy to write an update, which continuing improvements in the hotel industry forced him to rename: “NOW is a great time to buy a hotel (and not a bad time to sell)”.

CONTINUE READING →

Published on:

16 February 2013

Hotel Lawyer on the Pros and Cons of dual-branded hotels

Dual-branding of hotels in a single structure or complex is quite a trend in the hotel industry and has been picked up by the popular press.

The hotel lawyers in JMBM’s Global Hospitality Group® have been working on dual-branded hotels for some time, so we thought we would share some our observations on the pros and cons of this approach.

My partner, Bob Braun, has worked on many hundreds of hotel management agreements and franchise agreements, and has written this article to provide an important update on this subject.

CONTINUE READING →

Published on:

8 February 2013

Buying a hotel? Why use a checklist?

Checklists are a great way to keep track of things when a lot of work needs to be coordinated among a lot of people.

Buying a hotel is usually a complex process with a lot of moving parts. Just keeping track of all the key people involved can be challenging in a fast-moving deal. And because a hotel involves both special purpose real estate and an operating business, there are many details requiring attention to successfully evaluate and transfer the hotel.

That’s why the hotel lawyers in JMBM’s Global Hospitality Group® usually start every hotel acquisition or hotel investment transaction by customizing a generic form of checklist to fit the specific transaction at hand. By clicking the link below you view or download one of the generic forms of hotel acquisition checklist that we often use as a starting point in preparing a customized checklist for each unique transaction.

The customized checklist helps us manage the acquisition or investment process, keep all the participants coordinated, and press forward to meet urgent milestones and deadlines.

[Read on to see how you can get your own free copy of our checklist . . .]

CONTINUE READING →

Published on:

30 January 2013

Click here for the latest articles on ADA Compliance and Defense.

 

Hotel Lawyer talking about California’s new law aimed at ADA litigation reform.

ADA litigation claims have skyrocketed. Since January 2005, 16,530 ADA lawsuits — lawsuits alleging violations of the Americans with Disabilities Act (“ADA”) — have been filed in federal courts across the country. Even more have been filed in state courts.

In the article below, two senior members of our Global Hospitality Group® talk about a new law passed in California with the goal of reducing abusive ADA litigation. Parts of this law became effective in September 2012, and the rest of it became effective January 1, 2013. Marty Orlick, Chair of JMBM’s ADA Compliance & Defense Group, and David Sudeck, hotel and timeshare lawyer, look at some of the key provisions of this new law and provide their observations about their impact.

Marty and David frequently work together to advise hotel and timeshare owners and operators in connection with Federal and State accessibility law compliance. In this article, they bring California business owners some insight into the likely effectiveness a well-intentioned new law intended to curb abusive ADA litigation.

CONTINUE READING →

Published on:

28 January 2013

We are at the beginning of what looks to be a renaissance of “hotel-retail mixed-use” development. Shopping center developers nationwide are exploring the feasibility of adding a hotels to existing retail properties, while others are already implementing plans that have been in the pipeline. Some are adding hotels to the mix for new ground up development. Fueling this trend is research showing that both retailers and hoteliers make huge gains in revenue when they come together in the “hotel-retail mixed-use” environment.

My partner, Guy Maisnik, and I recently wrote an article on this subject for Hotel Business and it is reprinted below, with permission.

CONTINUE READING →

Published on:

27 January 2013

Hotel Lawyer with the mood of the hotel industry from the ALIS conference

If you didn’t attend the ALIS hotel conference in Los Angeles this year, you really missed something!

Hotel investment conference attendance is a barometer for the health of the hotel industry. Companies send lots of delegates to these conferences when they are doing well, expect increased business, and are optimistic about the future. By that standard, things are really looking up for the hotel industry in 2013 and beyond!

But industry fundamentals also backup this optimism. And there was more consensus than we have seen for many years that things are good and continuing to get better – – with at least a five-year run of improving economics and values. (5 years!)

But there is more good news . . .

CONTINUE READING →

Published on:

20 January 2013

Click here for the latest articles on ADA Compliance and Defense.

 

Hotel Lawyer with some practical advice on what do when the Department of Justice knocks on your door with an ADA “survey”

Actually, the DOJ normally mails you the ADA survey form. But it does come down to the same thing.

By the time you get a DOJ survey, a lot of your flexibility is gone, but it is not too late to protect yourself if you seek experienced counsel immediately.

We are already seeing an increase in public and private enforcement of the ADA. While many are being distracted by pool lifts and other new ADA requirements, private advocacy groups and the DOJ keep banging away on the basics.

Examples? One day this past week, a single ADA plaintiff’s lawyer filed 19 lawsuits in the Los Angeles federal court (Central District of California). And, here is the latest on what is going on with the DOJ enforcement action in New York City with the top-rated Zagat restaurants.

CONTINUE READING →

Published on:

15 January 2013

Hotel Lawyer with lender problems on a problem golf course.

A recent court decision points to a critical difference between the way revenue generated by golf courses and revenue generated by hotels is viewed in a bankruptcy scenario. My partner, Ben Young, reports how one lender found out that the cash flow generated from the green fees of a bankrupt golf course was not part of the lender’s collateral.

Veteran workout specialists will be reminded of the old “rents versus accounts” issue on hotel revenues that was finally resolved by an amendment to the Bankruptcy Code.
Double Bogie: Bank’s Security Interest in Green Fees
Cut Off by Club’s Bankruptcy

by
Bennett G. Young | Hotel Lawyer

Are golf course revenues “rents”?

A golf course may look like a solid piece of collateral. After all, golfers will pay good money to play and the green fees and driving range fees golfers pay to play the course will generate a revenue stream. This revenue stream can be pledged to a lender and used to support loans to the owner of the course. Lenders love to finance a business that generates a steady revenue stream, making a golf course look like an attractive form of collateral.

But what happens if the owner of the course files a bankruptcy case? In that event, the lender will want to control the borrower’s cash flow. Does the lender’s lien extend to the green fees and driving range fees paid by golfers after the course’s owner files a bankruptcy case?

CONTINUE READING →

Published on:

14 January 2013

Click here for the latest articles on ADA Compliance and Defense.

 

Hotel ADA Defense & Compliance Lawyer with some tips on what you should do now.

January 31, 2013 is fast approaching and once again our phones are ringing off the hook and the emails are streaming in. Our hospitality clients want to know the latest action being taken by the Department of Justice (“DOJ”) on the Americans with Disabilities Act requirements for pool lifts at pools and spas at hotels, resorts, country clubs, golf and tennis facilities and other places of “public accommodation.”

So here is where things stand.

The pool lift controversy continues to make a splash,
but is it a diversion from enterprise-wide ADA compliance?

The latest update is that the DOJ has not yet further delayed the January 31, 2013 implementation date.

The DOJ stunned both the hospitality industry and pool manufacturers when it proclaimed that only “fixed” or permanent pool lifts would comply with the new 2010 ADAAG Standards (effective March 21, 2012) to the extent “readily achievable.” Portable pool lifts installed on an as needed basis are prohibited unless it is not readily achievable, in which event a portable lift may be used if it is properly anchored.

Due to the efforts of industry groups like American Hotel & Lodging Association and pool and spa organizations, the DOJ postponed the pool lift effective date from March 21, 2012 to January 31, 2013.

The DOJ’s published position is that pool lifts need to be available at each pool and spa (although only one lift is required at a “cluster” of spas) during all pool and spa operating hours. The DOJ has mandated that only “fixed” pool lifts may be installed at each location unless the business can establish that such installation is not “readily achievable.” In such event, a portable pool lift may be permitted if it is properly secured and in place during operating hours.

All indications are that the DOJ remains intransigent that the pool lift requirement will be enforced on January 31, 2013 and pool lifts must be “fixed” to the extent readily achievable. A determination of what is “readily achievable” requires a legal opinion based on the facts of each case.

The ADA pool lift requirement — Situation summary

In September 2012, the DOJ announced it would extend the fixed pool lift requirement to January 31, 2013. Since then, the pool lift controversy has drawn little public attention, until now. Industry groups continue to work with legislators and DOJ officials to provide a greater degree of certainty and “real world” practicality to the pool lift controversy. Those close to the source believe that the DOJ will affirm the implementation date and its position that fixed pool lifts are required where readily achievable. The pool lift train left the station and those in the know believe the DOJ and disabled advocacy groups will enforce the “fixed” pool lift requirement January 31, 2013. We know of several lawsuits filed over the lack of pool lifts after March 21, 2012. We also know of a number of plaintiff’s lawyers who have been waiting for February 1, 2013 to make their splash into pool lift accessibility litigation.

CONTINUE READING →

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