General Management USA & Canada Opinion Articles

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

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

United States

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

United States

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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

United States

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

United States

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

United States

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

United States

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:

HotelNewsNow

United States