Author of www.HotelLawBlog.com
27 September 2006
UNITE HERE hotel union officials announced that they are scheduling a protest for tomorrow afternoon (September 28) at 4:30 pm during rush hour traffic with the intent to close down Century Boulevard–one of the main corridors to and from LAX.
Author of www.HotelLawBlog.com
26 September 2006
Yesterday, we noted how Shaquille O’Neal is jumping into a $1 billion joint venture on a hotel-enhanced mixed-use project in Miami. Now it looks like Andre Agassi is looking for a new kind of grand slam.
Author of www.HotelLawBlog.com
25 September 2006
Last week at The Lodging Conference in Phoenix, hotel-enhanced mixed-use was one of the hot topics which everyone was talking about. A recent example of this trend was reported in the September 19 news that Miami Heat basketball star and NBA champion Shaquille O’Neal is getting involved in a high-profile mixed-use project. He has formed The O’Neal Group, a real estate firm that plans big real estate projects across the country. Its first venture is with MDM Development in a $1 billion mixed-use project in downtown Miami. The so-called Met Miami will include an office tower, 1,100 residential units, a supermarket, a 24-hour fitness center and a high end Marriott hotel. O’Neal, who has amassed a real estate portfolio worth $50 million over recent years, will be involved in the sales and marketing arm of the development operation.
Author of www.HotelLawBlog.com
23 September 2006
At a little after 7 p.m. on Saturday, September 22, 2006, CBS reported that Local 2 of UNITE HERE announced that the rank-and-file had approved the tentative contract negotiated with the 13 Multi-Employer Group (MEG) hotels. The union said that 99% of the workers voting approved the contract.
Author of www.HotelLawBlog.com
22 September 2006
As a record 1,200 delegates gathered at The Lodging Conference held at the Arizona Biltmore in Phoenix this week, the mood might be best described as “ebullient foreboding.” According to Jones Lang LaSalle, we are seeing an unprecedented level of hotel transactions–more than $21 billion in the first six months of 2006 and more than all twelve months of 2005. And Smith Travel Research told us how well-positioned the industry is for sustained profitability and growth with continuing record RevPAR growth increases, demand growth still outpacing supply, and big barriers to entry.
Author of www.HotelLawBlog.com
22 September 2006
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We have been called in after-the-fact many times by developers who have been given unworkable condo documents drafted by expert condo lawyers. The problem is that they were experts in condos, but had scant experience with hotels, and no experience with condo hotels. Unfortunately, the best way to fix bad documents at the outset is to throw them away and begin again from scratch. Condo hotel deals are far too complex to try and bandage bad documents. But once they are in place, you may have to live with them for a long time, even if they are terrible.
Author of www.HotelLawBlog.com
20 September 2006
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Maintaining the quality of the condo hotel is a key component to the success of a condo hotel project. The condo hotel must deliver the expected consistent quality levels of service, room finishings and other physical product for its brand or market segment. Face it: the fastest way to turn a four-star property into a three-star property is to have inconsistent standards.
The condo hotel regime must provide the legally enforceable structure to maintain consistency and quality, and the mechanics to enable the unit owners, through their HOAs, to meet their obligations under the hotel management agreement, and to enforce their rights.
Author of www.HotelLawBlog.com
19 September 2006
As a record 1,200 hotel industry members meet at The Lodging Conference at the Arizona Biltmore in Phoenix, Starwood Hotels & Resorts Worldwide held a special reception to announce the long-anticipated new name for its Westin extended stay product.
Author of www.HotelLawBlog.com
18 September 2006
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The Securities and Exchange Commission (SEC) may view the condo offering as a “security,” if any one of the following exists: 1) The condo is sold to the buyer with an emphasis on economic (or tax) benefits; 2) the condo is put into a “rental pool,” where income and expenses are pooled and each condo owner gets an allocated share; 3) the unit owner has substantial restrictions on use, occupancy or selection of a rental agent of the owner’s choosing, or 4) the condo was offered with certain “ancillary services” such as a rental program. Because a successful condo hotel must have an adequate and predictable inventory of rooms to rent out to hotel guests, it is easy to see how these factors could present challenges.
Author of www.HotelLawBlog.com
17 September 2006
In past few blog commentaries, I have described the labor settlements in San Francisco and Monterey, and begun to look at what they portend. Last time, my partner, Marta Fernandez, helped us understand that although the union would like us to think that the deals cut with Multi-Employer Groups (or MEGs) in various cities set the standard for everyone else, that is not true. Nothing mandates that hotels adopt a “me too” agreement as the union proposes.
Today, we will look at one important area where it may pay for other hotels (i.e. non-MEG hotels) to avoid the “model” negotiated by the MEGs.