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Opinion Article

June 8, 2017

Key Takeaways: AHLA & AAHOA’s – Legislative Action Summit 2017

The American Hotel and Lodging Association (AHLA) and the Asian American Hotel Owners Association (AAHOA) held their annual Legislative Action Summit (LAS) on May 17 and 18 in Washington, D.C. Year after year this event brings together a strong showing of general managers, owners, operators, developers, investors, asset managers, hotel employees, and government affairs experts to meet with congressional representatives from their respective states in their Capitol Hill offices to share stories and educate Congress on the issues presently affecting the hotel and lodging industry. The event included remarks from the respective organizations' Presidents and CEO's, briefings from political influencers and members of congress. During the first day, attendees were educated on how to effectively lobby Congress to discuss issues affecting the industry before heading to "the Hill" on the second day for the unique opportunity to meet with their Congressional Representatives and their staffs.

By Chelsey Leffet and Kirby D. Payne

Washington, District of Columbia, United States

Opinion Article

November 11, 2016

How the Marriott-Starwood merger will affect you...

Marriott closed its acquisition of Starwood on September 23, 2016, following Accor's closing of its acquisition of Fairmont/Raffles on July 12, 2016. Other consolidations may already be underway. In any event, most of us in the hotel industry expect some very important consequences to result from such transactions.

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

Opinion Article

March 3, 2016

What’s Negotiable in Hotel Management Agreements?

Having represented management companies and owner/developers in projects ranging from five-star mixed-use luxury branded resorts to limited-service highway franchised hotels, I have had the opportunity to work on many branded management agreements, third-party management agreements (non-branded) and franchise agreements. From my years of experience, I've compiled a list of key terms and tips for you to live by.

By Albert Pucciarelli, Esq., Cayuga Hospitality Consultants

Opinion Article

September 7, 2015

Blocking FCC-Approved Wi-Fi Hotspots is “Patently Illegal” – What You Need to Know

On August 18, 2015, the FCC announced a $750,000 civil penalty and formal Consent Decree with Smart City Holdings for blocking consumers' personal Wi-Fi access at various convention centers, meeting centers and hotels around the United States. Smart City is an internet and telecommunications provider for such facilities, and had been blocking personal mobile "hotspots" being used by convention and meeting attendees.

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

Opinion Article

February 4, 2015

Can lawyers destroy TripAdvisor?

Nota bene: After opening the month by discussing the imaginary situation where SEO is no longer a significant factor in web search as well as alluding to the potential drawbacks that negative reviews on third-party sites like TripAdvisor in another article, it seems appropriate to end the month by talking about another hypothetical situation. Again, it may be true or it may be false, but what's really important is that it gets you thinking!

By Larry Mogelonsky, Partner, Hotel Mogel Consulting Limited

Opinion Article

September 18, 2014

FAQs on Service Animal Requirements of the ADA. What Every Hotelier Needs to Know. Why Uber was Sued

The recent Uber lawsuit | On September 9, 2014, Uber Technologies was sued in Federal Court in San Francisco for violating the Americans with Disabilities Act (ADA) and California's Unruh Act. The suit arose from the claim that UberX drivers refused to allow blind riders to bring their guide dogs. For a copy of the complaint, click here to see Natl Federation of the Blind v. Uber Technologies. This is just the latest in a long history of complaints or enforcement actions involving the legal requirements concerning "service animals" under the ADA and corresponding state laws such as California's Unruh Act.

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

Opinion Article

September 11, 2014

Calculating Damage Awards in Hotel Management Agreement Terminations | By: Jan A. deRoos Ph.D. and Scott Berman

When a hotel management agreement is terminated without the consent of the manager, the law clearly allows the manager to recover damages (from the owner) as a result of the termination. In most cases, the owners and managers resolve their issues without litigation. For the substantial number that cannot agree and thus must be adjudicated, the courts have supported solid estimates of forgone fees for determining damage awards, based on careful, defensible calculations of the hotel's performance during the prospective contractual period.

By Jan deRoos, Associate Professor and HVS Professor of Hotel Finance and Real Estate, CHR

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Opinion Article

September 3, 2014

Hotel Management Companies and Equity Contributions: Benefits and Risks

Hotel financing takes different forms based on the capital requirements of the developer and the availability of alternative financing sources. These factors vary with the economic climate. Typically, hotel developers attempt to finance new hotel construction projects with a combination of debt and equity. Within these two general categories of capital, various sources may be required to fund the project. This article investigates the benefits and risks of seeking equity participation from hotel management companies.

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

Opinion Article

August 28, 2014

Selecting A Hotel Management Company: A Decision Worth Millions

After accounting for differences in branding, location, property age and condition, market size, and property type, do different management companies still produce significantly different results? This article shows that the answer is: YES.

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

Opinion Article

March 5, 2014

"Chain" versus "Independent" - A View from an Operator of Independent Hotels

In recent years, the topic of "brand versus independent" has become increasingly popular. Every industry conference has a panel titled the same, numerous articles - and blogs - are being written on the topic by every publication, HotelNewsNow recently launched a newsletter dedicated to independent hotels, the inaugural Independent Lodging Congress took place in Philadelphia in late 2013 focused on gathering the owners and operators of independent hotels, and if that were not enough, numerous high profile "de-flagging" lawsuits have certainly highlighted the topic. While it is hard to attribute the peaking interest on this topic to only a few things, clearly owners are questioning the cost/benefit of a chain affiliation, internet distribution and marketing have dramatically leveled the playing field over the past 10 years, customer loyalty is not what it used to be and consumer preferences are certainly evolving.

By Alex Cabanas, CEO, Pyramid Global Hospitality

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

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

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

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

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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

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 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

Opinion Article

November 15, 2011

Hotel Revenues Not Subject to Absolute Assignment of Leases and Rents - A Silver Lining in the Dark Clouds of the Great Recession?

While it takes an accomplished clairvoyant to predict where RevPar 1, ADRs2 and Occupancy3 will be in the coming months, or for that matter the coming years, for those hospitality owners and operators trying to weather the economic storm there has been some positive news recently out of a place that few wish to spend "too many a night" – the United States Bankruptcy Court4. In the spring of 2011 an oceanfront hotel owner was successful in arguing that it is permitted to use the revenues generated from its guests' stay and use of amenities to assist in the reorganization of the company.

By Francis Gorman, III, Cayuga Hospitality Consultants

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