General Management Opinion Articles

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

United States

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

United States

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.

United States

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

United States

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

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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

Opinion Article

August 27, 2012

Dodd-Frank Act presents Hotels with decisions on credit and debit card charges

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.

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

Opinion Article

July 23, 2012

Hotel Lawyer: Experts Share Top 5 Tips On Picking The Right Hotel Operator And Brand For Your Hotel

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.

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

Opinion Article

July 19, 2012

Losing The Expectation Of Privacy Bit By Bit, Byte By Byte

Hotels and restaurants are among many other businesses that monitor employees at work through video surveillance, and through employees' use of company-issued computers and smart phones. While employers gain benefits such as reducing theft, decreasing liability and ensuring safety procedures are followed, employees can feel that this electronic monitoring violates their privacy. In his article below, Mark Adams, a litigator in JMBM's Global Hospitality Group®, shares with us how courts are ruling in lawsuits that deal with electronic surveillance of employees. He also gives employers advice on how to prevent these lawsuits from happening.

JMM

Opinion Article

July 9, 2012

How to terminate a hotel management agreement: A Tale of Two Hotels -- Marriott's Edition Waikiki and Fairmont's Turnberry Isle Resort

Hotel Lawyer with an interesting comparison of two significant hotel takeovers -- Marriott Edition Waikiki becomes The Modern Honolulu and Fairmont Turnberry Isle & Resort drops Fairmont

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

Opinion Article

June 22, 2012

EB-5 Lawyer Alert #3: Update on California TEA designation procedure. What's the problem in California!

California adopted a new TEA policy as of April 30, 2012 which my partners Catherine Holmes and Victor Shum have been on top of from the outset. On June 19, 2012, the California Governor's Office held an open conference call to discuss further changes in California's procedures for designating Targeted Employment Areas or TEAs. There is some good news and some bad news. Here is an update on what transpired.

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

California, United States

Opinion Article

May 30, 2012

ADA Compliance And Defense Lawyer: ADA Experts Discuss Hottest Issues Facing The Hotel Industry Today

At a recent gathering in Los Angeles, a group of ADA experts convened to discuss the hottest issues facing our industry. The panel was moderated by my colleague David Sudeck, who was kind enough to write an article for our readers summarizing some of the matters discussed. The PowerPoint presentation prepared by the panelists is also available by clicking here

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

Opinion Article

May 24, 2012

Successful Joint Ventures For Hotel Development, Acquisition And Financing

At JMBM's recent hotel finance conference in Los Angeles, a panel of experts talked about how well joint ventures are working to provide financing for hotel development and acquisitions. The Joint Venture Panel from Meet the Money® 2012 featured 5 veteran hotel investors and operating partners, and was moderated by Guy Maisnik, hotel lawyer and Vice Chair of JMBM's Global Hospitality Group®.

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

Opinion Article

May 22, 2012

ADA compliance and defense lawyer alert: ADA pool lift deadline extended to January 31, 2013

This morning, the DOJ formally published an "Amendment of the Americans with Disabilities Act Title II and III Regulations to Extend Compliance Date for Certain Requirements Related to Existing Pools and Spas Provided by State and Local Governments and by Public Accommodations" (ADAAG Sections 242 and 1009 Standards for Accessible Design). The new pool lift Compliance Date is January 31, 2013. The Amendment acknowledges that the DOJ's January 31, 2012 technical advisory caused "significant concerns and misunderstandings among a substantial number of pool owners and operators" with respect to the new technical requirements pool lift must .

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

United States