Library Archives

 
Tara K. Gorman

From the looks of it, doom and gloom seem to surround us at every turn. We hear and read about the downturn in the economy in the newspapers, on the evening news, from the Sunday morning "talking heads", at cocktail parties and business events, around the water cooler and even in supermarket tabloids. This economic downturn is affecting every industry - including the hospitality industry. More and more hotel owners may begin to find themselves in financial turmoil and may have to turn to bankruptcy as a solution to a very difficult set of circumstances. READ MORE

Dan Brown

Like other industries, the hotel industry has followed the environmentally friendly trend of going "green". Hotel developers have recognized the cost-saving and marketing benefits of going green, because apart from being environmentally responsible, green development could literally translate into more green in the bank by increasing revenues and reducing costs. However, now there is a compelling new reason to design and build green projects - increasingly, it is becoming the law. As green projects become mandatory, and as projects come to fruition, litigation is sure to follow as hotel developers and others go top court to resolve issues relating to going green. READ MORE

William A. Brewer III

Two dark horses have emerged in the current economic climate both competing for hospitality industry and real estate consumer and investment dollars. The contenders are Extended-stay hotels and Multi-family Apartments MFAs). Extended-stay hotels are competing by trading in their economy pedigree and emerging as upscale alternatives to traditional business traveler accommodations. MFA's are responding to the changing market place by offering short-term leases to market segments that traditionally would not be considered rental property consumers. The convergence of long-term stays and short-term leasing creates interesting legal issues as hoteliers and landlords blur the lines between traditional hotel stays and leases of rental property. READ MORE

William A. Brewer III

The competitive environment in the hotel industry is undergoing increasing change. Beyond mergers and consolidations, hotel and management companies are seeking to leverage their existing brand portfolios through "brand extensions" or "co-branding" relationships, particularly in the luxury segment of the market. These new relationships will almost certainly have an impact on the so-called territorial restriction provision commonly found in a management agreement - the provision that most often dictates if, and how, a hotel operator can compete with a hotel owner. In considering what that impact might be in this evolving legal landscape, owners and operators should ask themselves three basic, but critically important questions. READ MORE

Nelson Migdal

The deed in lieu of foreclosure offers lenders and borrowers an alternative to foreclosure when the going gets rough. However, when the subject of foreclosure is an operating hotel, there are many complexities that must be analyzed and understood prior to handing the keys over to the lender. READ MORE

Dan Brown

The ultimate responsibility and goal of a hotel manager is to achieve a profit for the hotel's owner and ensure that the hotel's guests are happy with their stay. To that end, a hotel manager acts behind the scenes at a hotel like a puppeteer with numerous day-to-day responsibilities for nearly all aspects of a hotel's operations, including, but not limited to, supervising and managing personnel, marketing, sales, security, maintenance, and food and beverage operations. READ MORE

Nelson Migdal

Brand standards not only effect the guest experience, but they also effect the value placed on the hotel by hotel owners, lenders and investors. The juxtaposition between the desire of the brand to upgrade its brand standards and the desire of the hotel owner, lenders and investors to keep a tight grip on the bottom line can be complicated - and the brand standards are a critical component in the equation. The pendulum appears to be swinging in the direction of greater influence being exerted by the easily recognized and well known branded hotels. The credit world finds comfort in a name on a hotel that has a solid history and reputation, and investors seem to be similarly eased by mobilizing capital resources into a branded hotel. But what is the brand standard in the area of hotel operations and management? READ MORE

William A. Brewer III

In an age of unprecedented hospitality litigation, electronic discovery has arguably become the most critical factor in determining the outcome of major cases in our industry. Why? Because the growing concentration in today's hospitality arena has led to bigger players fighting larger, more complex disputes. SEC inquiries, M&A transactions and owner-manager dealings are all resulting in "bet-your-business" cases. The tools used to service these cases must match their sophistication and complexity. Positive results depend on how each side effectively manages technology and electronic discovery. Once a competitive advantage, effective electronic discovery has now become a competitive necessity, and therefore should be understood not only by corporate lawyers and outside counsel, but also by the management companies and individual owners who employ them. READ MORE

William A. Brewer III

Condo hotels are creating quite a buzz in the hospitality industry. Although the concept is not particularly new, the recent stir over the conversion of New York's Plaza Hotel to condominiums has focused the spotlight on this industry phenomenon. Owners, management companies, investors and analysts are all taking a hard look at the potential rewards of this latest development craze. However, developers and investors may want to proceed with caution, because in the hospitality industry everything that goes up must come down - which promises lots of litigation will follow. READ MORE

William A. Brewer III

Mergers and acquisitions, disputes over management agreements, and fights for ownership of guest information. These are just some of the issues among today's hospitality industry headlines. As a lawyer often involved in these sorts of matters, we often must work with the news media - and manage the glare that follows high-profile hospitality issues. While many lawyers shy away from public comment on these matters, we believe that it is better to help our clients navigate the waters of public relations. In fact, we consistently recommend that our clients - whether managers, owners, investors or otherwise - work with the news media when involved in high profile hospitality disputes. READ MORE

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Coming up in June 2021...

Sales & Marketing: Playing the Long Game

During an economic downturn, it is tempting to slash marketing budgets to make up for lost revenue. But smart hoteliers play the long game, knowing that companies who stay engaged with their customers will be the first to benefit from a rebound. Therefore, now is the time to renew and revamp sales and marketing strategies in order to be ready for what lies ahead. For example, this is a perfect time to refresh website content, social media and SEO.  The same for hotel blogs where content can be updated to give customers inspirational ideas as they begin to travel and meet again. Multimedia assets should also be revised with new photo/video shoots that provide accurate information about how setups, room configurations, and onsite offerings have changed to accommodate safer meetings and social distancing. The June Hotel Business Review will focus on the sales and marketing strategies that some hotels are adopting in anticipation of a recovery in 2021.