General Management Opinion Articles

February 10, 2008

Hotel Lawyer -- How to terminate a hotel management agreement when an operator really deserves it! |By Jim Butler

Hotel Lawyer on how to terminate a hotel management agreement when an operator really deserves it. The love-hate relationship between hotel owners and operators is as old as the institution of hotel management arrangements (going back to the 1970s). A good hotel operator can add up to 25% to the value of a hotel. A bad one can subtract the same amount or even more. In 20 years of focusing on the hotel industry, and specializing in representing hotel owners, developers and lenders in more than $50 billion of hotel transactions involving more than 1,000 hotels around the world, we have seen a lot of eager owners anxious to sign up with a big hotel brand, thinking that was the end of their worries. Often it is.

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

Opinion Article

October 22, 2007

Lost in Global Translation?

What are customers around the world saying about the new booming Middle Eastern brands? What are they reading in the brand-names? Which ones are they loving and talking about? Which ones can they pronounce, type and remember easily? Are these new local brands leading the charge for global mindshare, creating presence of greatness, or are they seriously lost in global translation?

Naseem Javed

Opinion Article

October 17, 2007

Milking Sacred Cows

It is somewhat ambitious for an article on hospitality to move beyond the immediate zone of hospitality, but trends outside the industry do impact it, and where conventional wisdom is a bit too solidly in the box, it may not be so good for business. Take for instance, the issue of global warming and pollution hitting the headlines of late. The worldwide focus is on greenhouse gases (CO2), diverting attention from issues such as disposing of petroleum-based plastic trash (that does not break down, whereas soy- and corn-based plastics do); or discovering ways to neutralize radioactive nuclear waste, air pollution, and hundreds of thousands of toxic chemicals in the environment, almost none tested singly let alone in combinations, for their impact on the human body. Just one class of toxins, psychiatric and other pharmaceutical drugs, are already in our drinking water and the food chain, while chemicals exist in almost everything we consume, including most “organic” foods, and most personal-care products in hotels read like a chemical experiment—which factually they are.

By Steven Ferry, Chairman, International Institute Of Modern Butlers

Opinion Article

October 7, 2007

How To Engage That “portable Generation”, Who Will Ultimately Run Your Business!

We have called them everything, from Gen X’ers, to Generation Y to the Me. Where many of us now in Senior positions were the product of Walkmans and Beepers, what has been technically spawned is remarkable, and our future leaders, General Managers and Key Middle Management are connected, as never before. Their ears are adorned with cell phones or head sets, fingers deftly tapping text, Blackberrys humming, iPods poppin’ and laptops magically imbedded on knees. They are mobile with their technology and aspirations.

By John Hendrie, Customer Experience Facilitator, Hospitality Performance, Inc.

Opinion Article

September 30, 2007

Hotel Lawyer: Return to "Normalcy" or "Irrational Pessimism"?

Hotel Lawyer at the Phoenix Lodging Conference. The 13th edition of The Lodging Conference in Phoenix is very unique. For the first time in many years, there does NOT seem to be an overwhelming consensus about what is happening -- at least as to the credit markets, and that is the big news here. Lodging fundamentals continue very strong, although occupancy may slip a small amount in 2008, and RevPAR growth will likely slow down (but it will continue to grow).

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

Opinion Article

September 27, 2007

Hotel Lawyer in Phoenix. State of the Lodging Industry: Is the party over? Or is this just the intermission?

Hotel Lawyer at the Phoenix Lodging Conference. Morris Lasky's Phoenix Lodging Conference is always one of my favorite hotel gatherings each year, and last night the 13th edition of this event got underway with more than 1,400 people registered -- up from 1,200 last year.

JMM

Opinion Article

July 25, 2007

Hotel Management Contracts In Europe

A hotel management contract, also known as a management or operating agreement, is an arrangement whereby a hotel’s owner contracts with a separate company, or an operator, to run a hotel. By doing so, the owner retains limited control over the operation of the asset often through measurable performance standards albeit that the owner retains more risk than if the hotel were leased to the operator.

HVS

Opinion Article

May 21, 2007

Lame Ducks Were Active | by Kevin F. Reilly

By the time this article is published, Congress will have been in session for a little more than 100 days. A number of changes can be expected with the Democrats taking control. They had a number of pet projects they wanted to address during this period. It is expected that a flurry of bills, the low-hanging fruit, will be enacted to show that the Congress can be effective. Most of the bills garnered Republican support although, ironically, the Republicans complained about being kept out of the negotiations on a number of them.

By Kevin Reilly and Kevin Reilly

Opinion Article

May 20, 2007

Hotel Lawyer: How hotel swimming pools may spawn ADA lawsuits and what to do about it

Hotel Lawyer on recognizing, avoiding and defending ADA lawsuits. In case you haven't noticed, ADA lawsuits -- suits filed under the Americans with Disabilities Act -- are on the rise. We have covered a number of troublesome ADA claim areas here on www.HotelLawBlog.com in the past [Just go the the blog and scroll down the right hand side until you see the easy-to-use tools to sort blog entries by topic. ADA is the first topic]. But today, I would like to introduce Marty Orlick, one of my hotel lawyer partners who specializes in defending ADA cases. In fact, Marty Orlick has represented property owners in defending more than 200 ADA cases! So let's get Marty's street savvy advice on how to recognize the threat and then to avoid the potential lawsuits lurking at bottom of your pool.

JMM

Opinion Article

April 19, 2007

Hotel Franchise Agreements: Mediation, Arbitration or Litigation? | Nobody Asked Me, But… No. 27

Many hotel franchise agreements stipulate arbitration over litigation. At first glance, this may appear to be more beneficial to franchisees but nothing could be further from the truth. Compulsory arbitration protects franchisor interests while diluting franchisee remedies.

By Stanley Turkel, CMHS, Hotel consultant, Stanley Turkel, MHS, ISHC

Opinion Article

April 1, 2007

The true story of two difficult guests

As a hospitality industry trainer, I’ve often said there’s no such thing as difficult guests, just nice people going through rough spots in life. Here’s a recent true story to demonstrate. It was early morning. Too early. After only 90 minutes of sleep, I awoke immediately, and as I headed down to the lobby to catch the hotel van, I was grateful to have at least made it back to my home state of Florida. It had been a very long night on the road.

By Doug Kennedy, President of the Kennedy Training Network, Kennedy Training Network (KTN)

Opinion Article

March 28, 2007

Doing Business In Mexico

This article is intended as an overview of major issues that may impact hospitality transactions in Mexico. Of course, each transaction is unique, but these issues are common hurdles foreign investors encounter when doing business in Mexico.

HospitalityLawyer.com

Opinion Article

March 19, 2007

Helping Owners Strike a Fair Deal: 5 Milestones Marking The Road To Success For Hotel Management Agreements | by Jim Butler and Robert Braun

In order to consummate any substantial business transaction, there are inevitably some “challenges” to overcome. Hotel management agreements are no exception: in part because of their complexity, and in part because hotel management agreements typically transfer effective control over valuable assets for several decades, and their terms can easily enhance — or diminish — the value of hotel by a staggering amount. We have often seen hotel values depressed by 50% or more from what the hotel would have been worth without the encumbrance of an onerous, long-term management agreement...

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

Opinion Article

March 6, 2007

A billion here, a billion there. (Ho Hum) Isn't it time we developed some hotels again? Will we get it right this time? Will Hotel-Enhanced Mixed-Use projects drive the market? By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com

Hotel lawyer on hotel and hotel mixed-use development. Wasn't it only “yesterday” that a few hundred million dollars seemed like a lot of money and made the headlines? After Blackstone's $39 billion purchase of Equity Office Properties deal was topped in deal size by Kohlberg Kravis Roberts’ bid for Texas Pacific Group (TXU) for about $45 billion, it almost seems like everyone yawns at “mere” billion dollar deals, much less something smaller. For example, did you notice any major headlines in the past couple of weeks about Winston Hotels being bought by Wilbur Investment for $850 million, or Apple Hospitality being bought by ING Clarion Partners for $890 million, or Hilton selling its Scandic Hotel chain to a private equity group for about $1.1 billion?

JMM

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Mews

Opinion Article

March 6, 2007

Reggie Jackson Hotel, Conference Center and Baseball Hall of Fame? By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com

In case you missed it, it has just been announced that former baseball star Reggie Jackson is the mystery developer of a proposed 252 room hotel and conference center in Seaside, California. At this point, Reggie joins a long line of celebrities and athletes jumping on the hotel mixed-use bandwagon we have covered here at www.HotelLawBlog.com.

JMM

Opinion Article

February 18, 2007

Get Involved in the Legislative Process

The Minnesota Lodging Association, in conjunction with the Minnesota Restaurant Association, like many other state associations across the United States hosts an annual event called Hospitality Day at the Capitol. The American Hotel & Lodging Association (AH&LA) has a similar event in Washington, DC called the Legislative Action Summit (LAS). (To learn when the next LAS is visit AHLA.com.) The recent mid-term elections prompted me to reflect back about how my interest in being more active in the political process evolved. Some people define "active in the political process" as voting in major elections while others define it as being a politician or a lobbyist.

By Kirby D. Payne, Founder and President, HVS

Opinion Article

January 30, 2007

The Next Frontier For The Spa Industry – Health Care

You do not need to be seer to see this next stage in the expansion for the Spa Industry. We have witnessed the evolution, originally for the indulgent, now for everyone. Health, attention, presentation, esteem, and, yes, still some indulgence – holistic, if you will. No longer that elite and remote location, Spas have partnered with or been created by hotels and resorts, providing new revenue streams and marketing advantages for Lodging operations. The next transformation is so obvious – Health Care Centers and Hospitals.

Hospitality Performance, Inc.

Opinion Article

January 9, 2007

How Will You Finance Your Hotel Project In 2007? Part II

Hospitality Lawyer on hotel finance in 2007. We recently featured our annual expert panel talking about "How will you finance your hotel project in 2007?" Today, I am delighted to present the thoughts of Patrick O'Neal, one of the industry's’ real lender icons, whether in workouts or CMBS loan production. Patrick has been a great friend and client for more years that either of us probably care to count, but I have always found Patrick’s thoughts, to be unnervingly candid, full of humor and remarkably “spot on” in terms of their accuracy. PNC Real Estate Finance and the hotel world are very lucky to have him! So what does Patrick have to add to the perspectives we have just enjoyed?

JMM

Opinion Article

January 9, 2007

Hospitality Lawyer - The Plays To Make Successful

Hospitality Lawyer on international hotel investments. In a number of recent postings on www.HotelLawBlog.com, I have focused on the attractiveness of international hotel investments and some of the big names pouring investment overseas. Some of the hot markets include Mexico, Costa Rica, the Caribbean, Spain, Italy, London, Saudi Arabia, Dubai, China and India. In Why we’re building hotels in India like crazy, I focused entirely on India, an explosive market that has often been overshadowed by opportunities in China. In announcing plans for Starwood Capital to invest a half billion in India alone, Barry Sternlicht says that there is so much demand that he is targeting an average annual return of 20% on investments in India!

JMM