General Management Opinion Articles - Hospitality Net

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Opinion Article

January 27, 2014

5 Things to Keep in Mind When You Look for a Hotel Operator

As the economy and the hotel industry fundamentals continue to improve, hotel values have recovered to pre-recession levels in many of the top 35 hotel markets, the number of hotel transactions has jumped and new capital is pouring into hotels. This new capital -- whether focused on new, ground-up development, or the purchase of neglected assets with a view to deep renovation and rebranding -- is increasingly seeking new brands and management for their hotels. We have not seen this many people looking for a great operator and a fair hotel management agreement in many years!

By Robert Braun, Partner, Jeffer Mangels Butler & Mitchell, LLP, JMM

Opinion Article

January 6, 2014

Buying Or Building A Golf Course, Due Diligence Is Key

Golf courses are back in popularity -- for play, purchase and sale, and development. Whatever your involvement, you will likely find today's article by my partner Guy Maisnik to be interesting and helpful in avoiding unnecessary losses.

By Guy Maisnik, Partner, Vice Chair, Global Hospitality Group®, JMM

Opinion Article

January 3, 2014

Keeping Track of Changes in Hospitality Law

While it may have been the least productive year for Congress in history, at least in terms of passing laws – fewer than 60 of which made it through the House and Senate and were signed by President Barack Obama, state lawmakers across the US were busy getting more than 40,000 bills passed including ones that tackle everything from drones to minimum wage to food stamp benefits.

By John Hogan, CHA CHMS CHE CHO, HoganHospitality.com

Opinion Article

December 17, 2013

Warning for hotel investors considering golf courses: Golf courses are different! They have different risks and require different skill sets

Hotel investors suddenly seem to be buying or building more golf courses. With the right expectations and circumstances, golf courses can make sense -- particularly as an amenity for hotels, residential development and other real estate. But as more hospitality clients look at golf courses, it seems appropriate to consider the drivers of this renewed interest, and some of the similarities golf courses share with other hospitality investments such as hotels. And finally, we want to look at some of the big factors that make golf courses very different from other hospitality investments, so you can avoid some unnecessary pitfalls.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

December 9, 2013

Hotel Lawyer: Surge of activity creates new management agreement opportunities

These are getting to be pretty exciting times to be in the hotel business. Hotel industry fundamentals have continued to improve since the Great Recession and none of the experts see a particular event or reason that fundamentals will stall. Although occupancy growth rate is slowing in some sectors, ADR growth generally continues to drive greater profits to the bottom line.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

August 16, 2013

“The Times They Are a-Changin'” (again) Part 2 of 2

Hotels serve large numbers of people of all socio-economic groups, races, genders and interests and we are often at the center of the action. As I mentioned two weeks ago, our changing times means embracing open discussion, preparing contingency plans and working with to properly handle those changing needs in changing times.

By John Hogan, CHA CHMS CHE CHO, HoganHospitality.com

Opinion Article

August 12, 2013

Rethink Your Strategy Before It Rethinks You

In many hotel management companies, September and October mark the beginning of the budgeting process for the next year. But before you start your budgeting, you might be well served to review and update your Strategic Plan.

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Opinion Article

April 15, 2013

How To Protect Your Proprietary Information From Employees

Hotel Lawyer on technology challenges to your proprietary and sensitive corporate information. The continuing advances of technology continue to present a double edged sword. On the one edge are tremendous cost savings, efficiencies and power to manage information. On the other edge are daunting issues of information security and privacy.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

April 2, 2013

To Brand or Not To Brand (your hotel)

One of the first decisions in the hotel development or acquisition process can have a lasting impact on the success of the project: whether the property should be branded, and whether that brand should manage the property. The hotel's brand will be a defining part of the profitability, image and value of the hotel, and there may be no other decision which has a greater effect on the future of the property. Similarly, the management of a hotel can enhance the value of the brand, protect the owner, or detract from the value of the hotel -- by as much as a 50% swing.

By Robert Braun, Partner, Jeffer Mangels Butler & Mitchell, LLP, JMM

Opinion Article

April 2, 2013

Hotel owners: How the appellate decision in Marriott International v Eden Roc can affect your hotel investment

As we reported in our 27 March 2013 blog, a New York Appellate Division court made it possible for the owners of the Eden Roc Renaissance hotel in Miami Beach to oust Marriott as its operator -- despite the long-term hotel management contract between the two, which would have lasted another 43 years. (See "Marriott loses appeal in Eden Roc case: Why all long-term hotel management agreements are now terminable.")

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

March 28, 2013

Why all long-term hotel management agreements are now terminable

Under a New York Appellate Division court decision issued March 26, 2013, virtually all hotel management agreements are now terminable at will by owners. And this result will obtain even against the Marriott-style management agreements that seek to avoid an "agency" characterization of the owner-operator relationship.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

March 25, 2013

Hotel Management Agreements: Key Business Terms at the LOI Stage

Is an LOI legally binding? The general rule: look to the language of the LOI to determine if the parties intend to be bound to all or some portions of the LOI. Most litigation regarding the enforceability of LOIs arises because the parties did not clearly reflect their intention concerning enforceability. This is particularly so if the LOI contains the material provisions of a contemplated transaction and there is no unequivocal expression of the intent of the parties to the contrary.

By Albert Pucciarelli, Esq., Cayuga Hospitality Consultants

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Opinion Article

March 7, 2013

21 Hotel Waterpark Resorts Opened in 2012 in USA

For the parents of young children and hotel-resort owners, 2012 was a good year, not a great year, but a good one for hotel waterpark resorts. Twenty-one (21) waterparks opened in the USA during 2012 compared to 27 in 2011, 20 in 2010 and the record high of 40 in 2007. While money is just beginning to loosen up for families and hotel developers, new hotel construction is still rather flat, but resort acquisitions and expansions are rising.

By Jeff Coy, ISHC, President of JLC Hospitality Consulting, JLC Hospitality Consulting, Inc.

Opinion Article

March 6, 2013

Hotel Lawyer On Adding A Hotel To Shopping Centers And Malls

The ULI program held on February 20, 2013 in JMBM's Los Angeles offices was a great success. The program title says it all -- "Back to the Future: The Renaissance of Hotel-Retail Mixed-Use." As one might expect for a ULI event on a timely topic like this, there was a capacity crowd, sharing of the latest "technology" in adding hotels to shopping centers, and a veteran team of presenters.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

February 20, 2013

Historical Trends Hotel Management Contracts

This article, based on findings from an analysis of over 500 management contracts collected by HVS as well as a review of publications on the topic, provides an overview of typical terms for a hotel management contract and examines historical trends observed in the industry. The article is not meant to provide trend information on what is happening in any particular hotel management contracts currently being negotiated but analyzes aggregated data for contracts written during the past three decates in the United States.

By Hans Detlefsen, Managing Director of HVS Global Hospitality Services, HVS

Opinion Article

January 31, 2013

Finally! Relief from abusive ADA litigation in California? Maybe not...

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 this article, two senior members of our Global Hospitality Group® talk about a new law passed in California with the goal of reducing abusive ADA litigation.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

California, United States

Opinion Article

January 17, 2013

Double Bogie: Bank's Security Interest in Green Fees Cut Off by Club's Bankruptcy

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.

By Bennett Young, JMM

Opinion Article

January 15, 2013

ADA Defense Lawyer: Pool lift deadline of January 31, 2013 looms, but may be a diversion from enterprise-wide ADA compliance

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 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."

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

January 3, 2013

Hotel Lawyer On Repositioning: The New York Times Reports 39 Percent Increase In Reflagging

Hotel Lawyer on the spike in reflagging hotels. It's often good news for us when the business section of a major newspaper explains what is going on in the hotel sector. (And nice, too, when the paper includes a quote by yours truly.) The topic? How and why hotel owners reflag properties. The reason for the story: the Great Recession has changed just about everything.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

October 9, 2012

Hotel Liability for Guest Information -- What you need to know and how to avoid liability

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.

By Robert Braun, Partner, Jeffer Mangels Butler & Mitchell, LLP, JMM