General Management Opinion Articles - Hospitality Net

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Opinion Article

August 9, 2011

M Waikiki's Edition lawsuit against Marriott International and Ian Schrager - an owner's HMA dispute with Marriott

I was recently interviewed by Jason Freed of HotelNewsNow (a division of Smith Travel Research) about three high profile lawsuits in the hospitality industry. The first case we discussed was the recent lawsuit filed by the owner of the 353-room Edition Waikiki against Marriott and Ian Schrager. As the hotel's owner, M Waikiki LLC asked the New York Supreme Court to terminate its 50-year, no-cut hotel management agreement (HMA) with Marriott on its $250 million Honolulu hotel and to award damages for misrepresentation and breach of contract.

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

Opinion Article

June 22, 2011

Hotel Lawyer: Protect Your Hotel Business With Captive Insurance

Setting up your own captive insurance company can protect your business and save you money! Captive insurance companies can provide substantial economic savings and tax flexibility for hotel owners. My partner, Gordon Schaller, is one of the top experts in the country advising clients on when it makes sense to set up a captive insurance company and how to do it. To find out how this can work for you, read today's post on the Hotel Law Blog.

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

Opinion Article

April 15, 2011

A new federal court decision upholds condo hotel structure. No "securities" involved as structured. Disgruntled condo hotel unit purchaser lawsuit dismissed

Hotel Lawyer with good news for well-structured condo hotel deals. With the experience gained as legal and business advisors on more than 100 condo hotel and hotel condo projects, we have said for many years that this type of project has earned an enduring place in the landscape of hotel and real estate development. We still believe that.

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

Opinion Article

February 28, 2011

Hotel Lawyer on Hotel Management Agreements: Exculpation Clauses for Protecting the Owner's Assets

This article briefly reviews the need for hotel owners to include a provision in hotel management agreements limiting the liability of the owner to its interest in the hotel property. This kind of provision is commonly referred to as an "exculpation clause," because it exonerates someone from blame or liability. While this is, in many ways, basic "blocking and tackling," it is important to remember as acquisitions in the hotel sector increase and as owners renegotiate agreements with brands and independent managers.

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

Opinion Article

February 17, 2011

Hilton Management Services looks to add depth

The strategy for Hilton Management Services is easy to describe when it comes to hotels bouncing back from the depths of a recession: maximizing an asset to meet an owner’s objectives. It comes down to nothing more than keeping the message simple and to the point, said Tim Benolken, senior VP of hotel operations in Western North America, during an interview at last month’s Americas Lodging Investment Summit.

Opinion Article

November 2, 2010

Hotel Lawyer: Checklist for negotiating Hotel Management Agreements/Hotel Operating Agreements - The HMA PRO™ Checklist

FREE Comprehensive Checklist for Negotiating a Hotel Management Agreement. Negotiating a Hotel Management Agreement or HMA is one of the most important things hotel owners will ever do for their hotel investment. And getting terms that work well for the owner can be very problematic. That is why JMBM's Global Hospitality Group® developed a solution for getting the best hotel brand and operator . . . and HMA terms that protect the owner.

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

Opinion Article

October 7, 2010

Hotel Lawyer with insights on How to get a great hotel operator

Hotel Lawyer with a big tip on how to get a great hotel operator and a fair hotel management agreement. With experience gained in negotiating, re-negotiating, litigating, arbitrating and advising on more than 1,000 hotel management agreements and more than $60 billion of hotel transactions, the members of JMBM's Global Hospitality Group® wanted to share some lessons learned on the subject. They are all available at www.HotelLawBlog.com.

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

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Opinion Article

July 14, 2010

Hotel Labor Lawyer Alert: U.S. Department of Labor targets the hospitality industry

The U.S. Department of Labor (DOL) is taking historic action. With a huge increase in funding and staffing, the DOL is specifically targeting audits and enforcement actions for every hotel, motel, and resort in the U.S. The program will search for violations of overtime rules, minimum wage, and classification of exempt and non-exempt positions. In addition, one of the primary focal points of these audits will be employers with workers holding H-2B visas.

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

Opinion Article

June 30, 2010

ADA enforcement "sweeps" hit the West Coast - Exactly what does this mean to the lodging industry?

As discussed below, the new sweeps are a "warning shot" - something that all lodging operators should take very seriously, and they should start working NOW to be prepared for these investigations. But this is only the tip of the iceberg in terms of what lodging professionals should be thinking of in terms of accessibility compliance.

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

Opinion Article

May 3, 2010

Hotel Management Agreement Terminations | Is There a Better Way?

Hotel management agreements are a key factor in the success and value of a hotel -- getting the right operator and a fair hotel management contract. Please note: Contracts between hotel owners and managers (or operators) controlling the management of a hotel go by various names. They are called "hotel management agreements", "HMAs", "hotel management contracts" or "hotel operating agreements." For convenient reference, this article will generally use the term "Hotel Management Agreement" or "HMA", but all these terms mean exactly the same thing. There is no difference. Similarly, for variety we will use the terms "hotel manager" or "hotel operator" interchangeably.

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

Opinion Article

April 9, 2010

Managing Risks Part of Managing Hotels

One of the most important aspects of owning and operating a hotel is minimizing the various physical and liability risks associated with this type of business. Risk management is the process of evaluating a hotel's risk exposure and developing strategies for mitigating those. It incorporates a program for reducing exposure supplemented by insurance protection should an incident occur. A hotel owner and operator would be far better off if they could eliminate all the possibilities of an incident on their property.

By Stephen Rushmore, Hotel Valuation Expert and Founder of HVS, Hotel Valuation Software

Opinion Article

November 5, 2009

Hotel Brand Management Agreements* and the Economic Downturn: Lessons Learned or Lessons Forgotten?

If the global recession of 2008 was an earthquake, its aftershocks are still being felt throughout the hotel industry. The recession has caused occupancy and rates to plummet, sending hotel values into a downward spiral. HVS recently reported that the average value of hotels across the United States is expected to drop to $50,000 per key in 2010, down 50% from the high water mark of $100,000 per key in 2006.

Haas & Najarian

Opinion Article

July 15, 2009

Be proactive about foiling pranks at your hotel

When is a prank not a prank? When there’s thousands of dollars of damage to someone else’s property. That’s when a prank becomes a criminal offense. Dictionary.com defines a prank this way: a trick of an amusing, playful or sometimes malicious nature. The malicious nature reference is where hotel owners and operators are paying a hefty price as a result of a wave of so-called pranks against U.S. hotels. Here’s one such report from the Orlando Sentinel last week. The summary: A prankster claiming to be a front-desk clerk awoke guests with a call at 7 a.m., told them there was a gas leak and they needed to smash the window of the guestroom with a toilet tank. The guests, including a county sheriff’s deputy, complied. They were also told to:

Opinion Article

February 14, 2008

Culture – It’s Not Just for Anthropologists Anymore

The list of trendy business buzzwords that enter the national consciousness and swiftly become hackneyed, empty shells of their previously profound selves is long and distinguished. To understand this phenomenon, one needn’t think outside the box to identify the low-hanging fruit that will allow us to innovate, simplify and effect the paradigm shift that will be a win-win (with ROI!) for all the key stakeholders. See what I mean. What at one time may have been evocative and meaningful becomes, at best, white noise. At worst - trite and laughable.

By Rob Rush, LRA Worldwide

Opinion Article

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?

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.

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