HOTEL BUSINESS REVIEW
DECEMBER FOCUS: Hotel Law

Decoding The Building Safety Act 2022

What it Means for Those Involved in BLLA Based Branded Residences and Hotel Projects

By Charlotte Tullis Senior Associate, Bryan Cave Leighton Paisner LLP | December 2023

This article was co-authored by Jeremy Bark, Associate Director, Bryan Cave Leighton Paisner

Historically, the United Kingdom has lagged behind the likes of Dubai, South Florida, New York, Hong Kong and Singapore in the branded residences space, as Brits have tended to prefer traditional house living.

However, this is gradually changing, particularly in London which, as a global city, has to cater for international tastes.

Opting to live in a branded residence brings with it many lifestyle benefits – the space is new, is fitted out to a high specification, and has the added benefit of access to services and amenities (highly desirable in today’s fast-paced society where people have little time to dedicate to upkeep of their homes). Discerning buyers want the luxury hotel brand experience brought into their home, with quality hotel services, access to the restaurants, the spa, and even to room services.

Investors and developers have jumped on this trend; Savills research indicates that 20 branded residences schemes will be either completed or in the pipeline to open by 2030 in London. The OWO Residences by Raffles and The Peninsula Residences London are the most recent luxury branded residences to be brought onto the market, with residences ranging in price from around £5 million for a two bedroom apartment to an eye watering £100 million for the penthouse in The OWO.

There is clearly an opportunity for inbound investors to capitalise on this emerging market. However, those that choose to invest in the UK must be fully aware of the statutory and legal framework that residential high-rise schemes must abide by, and, at its most reductive, items which may impact their returns. Enter stage left, the BSA.

The BSA: What Is it and Why Is it Needed?

In 2017, a devastating fire broke out in Grenfell Tower, a 25-storey (including the basement and ground floor) tower block in North Kensington. The fire, which started due to an electrical fault in a fridge freezer in one of the flats, entered the exterior cladding, and thereafter rapidly spread, engulfing the building entirely within 3 hours. Tragically, the fire resulted in 72 people losing their lives. In the public inquiry that followed, the rapid spread of the fire was largely attributed to the use of polyethylene polymer filler in the external cladding, which melts and combusts at elevated temperatures. There were other major building safety failures at the block which contributed to the loss of life, including a faulty smoke extraction system, no wet risers, and flat doors which did not meet fire resistance standards.

Following Grenfell, and with a view to eliminating any chance of it happening again, the Government commissioned an independent review of the building safety regulations. The resultant report (known as the "Hackitt Report ") recommended the implementation of a new, robust regulatory framework across the entire life cycle of "higher risk buildings" ("HRBs"), with safety at its heart. The BSA establishes this regulatory framework, which both amends the pre-existing legal and regulatory framework contained in existing legislation, such as the Building Act 1984; and (ii) introduces new rules and regulations. In this article, when we report on the regime created by the BSA, we are also reporting on changes made to existing Acts.

Unhelpfully, the content and implementation of the BSA differs across England, Wales, and Scotland, so for the purposes of this article, we have focused on the regime applicable to England.

Are Hotels and Branded Residences HRBS?

An HRB, in broad terms is a building in England that: (i) is at least 18 metres in height or at least 7 storeys; and (ii) contains at least two residential units.

How does this apply to hotels and branded residences? As the above definition suggests, the BSA does not currently apply to standalone hotels without a "residential" element (save a requirement that prohibits the use of combustible material on new hotels and existing hotels undergoing refurbishment). There is good reason for excluding hotels from the regime; unlike residential blocks, hotels are already required to have a robust fire escape strategy.

What is meant by "residential"? The Government has clarified that "residential unit " means "a dwelling or any other unit of living accommodation, for example a flat". Standard hotel rooms will not be caught by this, but what about luxury hotels, where there are penthouses on the upper floors and guests reside there longer term (e.g. in her later years, Lady Margaret Thatcher lived in the Ritz in London)? Such arrangements may bring a hotel room within the definition of a residential unit, and therefore the hotel within the BSA regime, notwithstanding the fact that standalone hotels are purportedly excluded from the BSA’s scope. The Government has also clarified that serviced apartments do not fall within the definition of a hotel. What is clear is that the BSA legislation and guidance does not neatly map some sophisticated hotel models; so it is always best to take appropriate advice if not clear on whether the regime applies to your building or not.

What about developments over 18 meters / 7 storeys with both a qualifying residential component and a standard hotel component? Will the BSA bite in respect of both the residential and hotel elements, or, will the residential and hotel elements be treated as independent and the BSA limited in application to the residential parts? The position here is a little more complex. During the design and construction phase of a mixed-use building, the entire building will need to comply with the BSA.

However, it is possible for the hotel element to be exempted from the occupational phase, dependent on whether the hotel is considered to be truly separate from the residences. Based on information published by the Government to date, access between the residential and hotel elements will be key to determining whether the hotel is subject to the BSA regime. Where each element is able to be "accessed" (defined here) from the other by way of connecting hallways and doorways (which will almost certainly be the case to assist with the provision of services and to give access to the hotel amenities), then the entire building will be subject to the BSA regime.

By contrast, where the hotel and residential elements are segregated with no access between the two and each having independent entrances and exits, then the BSA is unlikely to apply to the hotel element. In any event, the position is by no means clear cut, and a prudent developer/ investor should always seek appropriate advice regarding the BSA’s application.

Key Changes Introduced by the BSA

Having established that your scheme (or a part of it) is bound to comply with the BSA, what requirements need to be adhered to? It would be impossible to detail all the changes brought about by the BSA within the parameters of this article, but below are some of the key obligations to be mindful of, at each stage of the project.

1. Design and Construction Phase

Not all HRBs currently in the design and construction phase will be caught by the full suite of requirements prescribed by the BSA regime. After all, it could leave owners and developers severely out of pocket if they have to re-work an entire scheme that is nearing completion. For your HRB to benefit from the transitional arrangements, it needs to satisfy the following:

an initial notice or deposit of full plans for building control approval would have needed to be submitted to the local authority by 1 October 2023;
work must be "sufficiently progressed" (defined here ) by 6 April 2024;
the person conducting the work must notify the local authority no more than five days after the point the work is considered to be sufficiently progressed, and before 6 April 2024; and
the approved inspector must be registered as a building control assessor by 6 April 2024.

If the above requirements are met, the building control approval regime and building regulation requirements existing at the time of submission of the initial notice and plans will apply. However, the building will be subject to all requirements under Part 4 of the BSA in relation to the subsequent occupation phase. There is an argument that notwithstanding the application of the transitional arrangements, it may be worth owners / investors applying the higher safety requirements to the extent they can in any event, to safeguard against future tightening up of these rules, and to also reduce costs during the occupation phase.

In relation to HRBs which do not qualify for the transitional regime, the full fat version of the BSA must be complied with. Key changes to note are broadly:

the introduction of a new building safety regulator (the "Regulator") as part of the Health and Safety Executive, which will function as the building control authority in respect of all HRB works;
a new "gateway" building control approval regime for the regulation of the design and construction of relevant HRBs, which will comprise three hard stop-points before a project may proceed through the planning, construction, and completion stages and before occupation; and
new duties which require the creation and maintenance of a "golden thread" of key safety information (to include building design, details of the duty holder team, building approvals, evidence of compliance with building regulations etc).

The responsibility for these undertakings will be placed on the relevant "accountable person " (the "AP") during design and construction phase, and the "principal accountable person " (the "PAP") in the subsequent occupation phase, ensuring that a single entity takes overall responsibility for the day-to-day management of risks in an HRB.

2. Practical Completion

There are a range of requirements which must be adhered to (by either the PAP or the relevant AP) before a completed building may be occupied. These include:

obtaining a completion certificate from the Regulator (noting that the Regulator has 8 weeks in which to consider the application);
registering the building with the Regulator, which for existing occupied HRBs, required registration by 1 October 2023;
preparation of a "safety case report" containing the assessment of the building safety risks and a description of the steps taken to reduce risk;
where directed by the Regulator, applying for a building assessment certificate; and
preparation of a residents’ engagement strategy for promoting participation in the making of building safety decisions, and establishment of a system for the investigation of complaints made to the Regulator concerning either building safety risk at the building or compliance by the accountable person with duties under the BSA or secondary legislation.

Compliance with the various obligations will be enforced by the Regulator, by way of contravention notices. Contravention of a notice without reasonable excuse will be a criminal offence. Separately, even in the absence of a notice, if an AP / PAP contravenes one of its duties under the BSA and that places people in the building at risk, that will be a criminal offence (risking a fine, imprisonment, or both).

3. Occupation

The BSA empowers residents with the right to seek remediation orders in respect of defects which cause a building safety risk, and the funding of the same. It will be illegal for owners to pass on costs to qualifying leaseholders where a building requires the remediation of sub-standard cladding / removal of the same; and leaseholders will also have robust protection from the costs of other defects.

The BSA also extends the period in which homeowner and residents may pursue a claim under the Defective Premises Act 1972 against those responsible for constructing a new residence or conversion which is not fit for habitation: (i) to 30 years retrospectively (for any causes of action that have arisen within 30 years of 28 June 2022); and (ii) for all claims that arise after 28 June 2022, to 15 years.

In relation to those suffering damage as a result of a breach building regulations, the period in which to bring a claim has been raised from 6 years from completion to 15 years for those buildings completed after 28 June 2022.

Refurbishment of Existing HRBS

The BSA does not currently mandate that existing HRBs immediately undergo remedial work to make the buildings fully compliant with the BSA. However, where an HRB is refurbished or extended, compliance with the BSA is expected (save to the extent that the works are minor), and the regime applies thereafter.

Final Thoughts...

The BSA is undoubtedly a complex beast which is in its infancy, and is yet to be fully tested. Those looking to invest in hotels and branded residences, need to be alive to this regime, and what the various requirements and implications are at each stage of a project. One would hope that the safety requirements imposed by luxury operators as part of their brand standards would exceed the bar set by the BSA (and to the extent that is not the case then operators will quickly adjust to reflect best practice), but it is dangerous to assume this. If in doubt as to the BSA’s application, it is best to seek legal advice at an early stage; the reputational damage to all those involved in a non-compliant project, and the cost of rectifying any deficiencies could be huge.

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The AI Advantage: Hoteliers ROI of an AI First Mindset

By Michael Goldrich, Founder & Chief Advisor, Vivander Advisors

No longer a "nice to have," AI is becoming essential to operational success for hotel teams. According to the Nielsen Norman Group, generative AI can increase user productivity by an astounding 66%. The Massachusetts Institute of Technology (MIT) found that skilled professionals who integrated AI into their workflows experienced a 40% productivity boost. These aren’t incremental improvements, they represent paradigm shifts. McKinsey & Company reports that AI can automate between 60% and 70% of data collection and processing tasks. For hotels, where real-time data powers everything from revenue management to marketing automation, this level of automation means faster, smarter decisions....

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In today’s experience-driven travel economy, guests no longer choose hotels solely based on star ratings or amenities. Instead, they are drawn to stories—visually captivating narratives that help them imagine themselves in a space before they ever step foot inside. With the meteoric rise of short-form video on platforms like Instagram and TikTok, the hospitality industry is undergoing a major shift toward immersive, emotional marketing. At the forefront of this transformation is drone storytelling. Drone videography provides an aerial perspective that evokes awe, authenticity, and atmosphere. When combined with intentional storytelling, these visuals do more than impress—they influence perception, trigger...

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I used to treat ADR and RevPAR as gospel—twin pillars holding up the temple of “successful” hotel management. Then a six‑year‑old shuffled into our lobby, laced his fingers through Santa’s glove, and whispered that we were the only place he’d get to meet the Big Guy this year. In that moment another KPI muscled its way onto my dashboard: emotional equity. Local activations—those deliberately crafted experiences that weave a hotel into the fabric of its neighborhood—are how we mint that currency. They flip a box of guestrooms into a clubhouse, turn one‑night stands into regulars, and transform a...

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Doesn’t it appear that everyone is hiring in the hospitality industry? Are we always hiring or are there not enough people, or is it that the jobs are not those that people want? Think for a moment about the attractiveness of the industry and what draws people to it. As is often repeated a driver of the attraction for the industry, is in part, due to the fact that some are drawn by their attraction to people. The interaction, the interest etc. Guo and Ayoun noted that the opportunity for meeting new people is one of the popular reasons why...

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If you are in the travel business, especially in international leisure travel, you are likely well aware of the increased demand for this travel segment over the last few years, both before and after the COVID-19 pandemic. You might be asking yourself, "Who are all these new and seemingly wealthy young customers? Where did they come from, and what are they looking for in terms of travel experiences?" Regarding the first question, it is apparent that international travel has become more accessible to a broader audience. A larger proportion of the American travel market now belongs to the higher end...

Infectious Diseases Caught During Travel: Risks for Hotel Guests and Employees

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Pathogenic microorganisms, including bacteria, viruses, parasites, or fungi, play a role in the development of infectious diseases. As a result of their rapid and unexpected spread, these microorganisms can cause serious mortality in a community. There are numerous factors that influence health and the origins of infectious diseases which are often beyond the immediate reach of the health sector. These include the travel and tourism industries, as well as other sectors such as sanitation and water supply, environment and climate change, education, agriculture, trade, industrial development, and housing.The number and types of epidemics are increasing locally, regionally, and globally, whether...

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The wellness travel sector is experiencing unprecedented growth, with the Global Wellness Summit predicting spending on wellness tourism to reach $9 trillion by 2028. This surge reflects an evolving consumer focus on health, relaxation, and holistic well-being, as travelers increasingly seek experiences that allow them to recharge mentally, physically, and emotionally. Hotels, in turn, have responded by integrating wellness-focused amenities—such as state-of-the-art fitness centers, spa services, nutritious dining options, and mindfulness experiences—into their offerings. But while these amenities are crucial, one important factor is often overlooked: air quality. Beyond offering basic amenities like air conditioning and standard HVAC systems,...

HOTEL BUSINESS REVIEW DECEMBER FOCUS: Hotel Law