Hotels

As special-purpose and operator properties, hotels are no doubt among the types of real estate that present the most challenging economic and legal issues.

The planning, development and operation of hotels must take into consideration special building laws (e.g., classification of boarding houses for zoning purposes), trade laws, and fire safety regulations.

Operation of a hotel is often subject to a number of different contracts regulating the rights and obligations of the owner, operator (or franchisor), service providers, and providers of debt capital and equity capital, as well as distributing the financial risks and rewards. Hybrid models that do away with the strict dichotomy between lease and management agreements (lease agreement with income-based (and uncapped) rent, management agreement with guaranteed income for the owner) are gaining significance.

Drawing on many years of practical experience in this area, we represent the interests of developers, owners, investors, operators and capital providers, whether as lessors or lessees, and draft the necessary contract documentation.