Hotel closings are hitting record levels, but for all the right reasons! Unlike closings caused by the "great real estate depression" of the early 1990s, hotels are closing today in record numbers for major rehab and construction projects, conversions to condo hotel or residential condos, and expansion. The robust recovery in the hotel industry has brought plenty of business and leisure travelers willing to pay for a better hotel experience, or wanting to get in on the condo hotel boom. Hotel developers and owners increasingly find that construction is so extensive that it is advisable to close the hotel while the work is being performed.

The First Steps in Closing

If there is even a remote possibility that you may need to close your hotel for renovation or construction, you cannot make the decision without first considering the labor and employment implications. A few of the key items we help our clients to focus on early in a possible hotel closing scenario are: facilitating construction, avoiding costly missteps, and ensuring that they take full advantage of valuable opportunities.

At least three months before closing for renovations you and your labor counsel need to analyze the following issues applicable to your situation and consider ...