Owners of strong, unique independent hotels are finding that they can gain many of the advantages of an affiliation with a branded hotel management company without entering into a management
Continue Reading Collections Continue to Thrive
Hotels
Difference Between Club and Hotel Management Agreements
Often, a club management agreement reads exactly like a hotel management agreement, with the word “hotel” changed to “club.” This should not be the case. Clubs have unique characteristics that should be considered in drafting a club management agreement.
1. If the club is a member-owned club, it is not a profit-seeking business. As a result, the management fee structure would not have a profit based incentive fee, but could have an incentive fee tied to membership sales and retention or members’ satisfaction.
…
Continue Reading Difference Between Club and Hotel Management Agreements
Franchise Agreement Transfer Provisions
The number of hotels, particularly limited service hotels, operating under franchise agreements has exploded in recent years, and this trend is expected to continue in the near term. Franchise agreements, including those in the hospitality industry, are personal contracts for the benefit of the named franchisee only, and are further limited by the franchisee’s ownership structure as of the effective date of the franchise agreement. From this point of beginning, it is logical that the franchise agreement would also include strict limitations on the franchisee’s ability to transfer ownership interests of the franchisee both within the franchisee company and to third parties. Each franchisor will adopt its own unique approach to the transferability of interests, but there will be certain commonalities that franchisees should be aware of and carefully study.
Franchisees would be wise to assume that a transfer of any direct or indirect ownership interest in the franchisee is prohibited without the prior written consent of the franchisor or expressly permitted under the franchise agreement. Regardless of some of the variations of language, this means every transfer and covers direct and indirect transfers within the entirety of the franchisee’s ownership structure. There will be variations in the requirements to obtain the franchisor’s consent, and some transfers that may not require consent, but the general expectation should be that the general rule under the franchise agreement will be to prohibit transfers. …
Continue Reading Franchise Agreement Transfer Provisions
Hospitality Sector Leads the Way
It is difficult, if not impossible, to miss all of the positive indicators pointing to a robust and exceedingly vibrant hospitality sector. Whether it is the acquisition, financing, construction or…
Continue Reading Hospitality Sector Leads the Way
Employee Characteristics and Effective Hotel Leadership
Written by Nelson F. Migdal and Molly Kane.
What are the most important characteristics to possess in the hospitality industry? This question was recently posed among a highly experienced group of hospitality industry attorneys. Responses to the question included: enthusiasm for customer experience, working as a team, reliability, honesty, and being proactive as among the most important characteristics to possess in the hospitality industry. We thought the question was worth a deeper look.
On Bill Marriott’s list of 12 Rules for Success he states that “it is more important to hire people with the right qualities than with specific experience.” So what are the qualities Bill Marriott was referring to and how do they match up with some of the responses to our question? …
Continue Reading Employee Characteristics and Effective Hotel Leadership
Urban Land Institute (ULI) Spring 2014 Meeting Sets Positive Tone
The key phrase seems to be “slow and steady.” Market indicators in the hospitality sector are mostly in growth mode with upward pointing arrows in most, but not all, areas
…
Continue Reading Urban Land Institute (ULI) Spring 2014 Meeting Sets Positive Tone
Being Hospitable to Service Animals*
The Equal Rights Center based in Washington, D.C. has recently published a short and helpful booklet for users of service animals and other types of assistive animals. It is a
Getting the Word Out – It’s all about Marketing – The Interplay between Owner’s and Brand’s Priorities
At first blush one would think that a hotel marketing plan would equally benefit the owner of the specific hotel and the brand under which the owner’s hotel is operated.
iGlobal Forum Chairman Nelson Migdal Highlights the Dynamics of International Law in the Hospitality Law Sector
Recently, our very own Nelson Migdal, Co-Chair of Greenberg Traurig’s Hospitality Group, joined iGlobal Forum’s 3rd Global Hospitality and Lodging Investment Summit as the chairman and as a…
Continue Reading iGlobal Forum Chairman Nelson Migdal Highlights the Dynamics of International Law in the Hospitality Law Sector
Residential Realty – The Reemergence of Branded Residential Realty
Branded residential projects offer all the comforts of “home” with the luxury, prestige and high level of services offered at a hotel. This is not as easy as it may
…
Continue Reading Residential Realty – The Reemergence of Branded Residential Realty