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Hospitality


Overview

Carlton Fields has extensive experience representing hotel brands, owners, developers, lenders, and managers. Our representation covers all aspects of the purchase, sale, development, and both brand- and third-party management of hotels. As a full service firm with national and international reach, we are also well-equipped to handle client issues related to nearly every legal practice, including environmental, intellectual property, labor and employment, litigation and arbitration, and tax.
 
Our services for hospitality industry clients include the following:
 
Purchases and Sales of Hotel Properties
 
We represent hospitality industry clients in the negotiation, documentation, and consummation of acquisitions and dispositions, handling transactions of nearly every size and scope for clients that include major resorts, hotel companies, investors, and owners. Our efforts are supported and enhanced by our full service real estate practice, which provides planning, permitting, and development counsel.

Hotel Financing
 
We help hotel owners and developers finance and refinance a wide range of projects. Our representation builds on our extensive experience as counsel to numerous institutional and private lenders and investors.
 
This work includes:
 
  • secured and unsecured financings;
  • mezzanine financings;
  • equity investments;
  • construction loans;
  • permanent loans;
  • conduit loans;
  • sale leasebacks;
  • ground leases;
  • equipment lease; and,
  • contingent interest loans.
 
Hotel Development 

Our firm structures, negotiates, and documents complex real estate and resort developments. From the concept phase of a project, to its financing, construction, marketing, sales, and management phases, we represent and work closely with developers, foreign and domestic sources of capital, architects, contractors, brokers, marketers, managers, and governmental authorities.
 
Hotel Management and Operations

We advise hospitality industry clients on the full range of management and operational issues they face daily. Our work includes: negotiating and modifying management agreements with both the major brands and third-party management companies; representing owners in franchise agreement negotiations with the brand; and negotiating leases, concession agreements, and service, construction, and renovation contracts.

Hotel Franchise Agreements
 
We advise hotel owners and developers in the negotiation of franchise agreements with all the major hotel brands, including issues related to special termination options, guaranty caps, areas of protection, transfer rights, PIP negotiations, fee ramps and discounts, reserve fund contributions, “key money” and scope of brand approval of renovation plans. 
 

Experience

 Purchases and Sales of Hotel Properties 
  • Represented a hotel company in structuring its $1 billion multi-property/multi-portfolio/multi-country hotel disposition designed to monetize strategic hotel assets in a tax-efficient manner while retaining non-terminable management rights to the properties.
  • $450 million portfolio sale of 13 hotel properties in the United States, Canada, and the Caribbean to monetize strategic hotel assets in a tax efficient manner while retaining non-terminable management rights to the properties.
  • $300 million sale of a majority partnership interest to hotel properties with the retention of long-term management rights for luxury hotels in Chicago and Miami.
  • $50 million sale of a full service hotel encumbered by a long-term management agreement in Kansas City, KS.
  • Complex tri-party portfolio sale of 11 hotel properties with contemporaneous negotiations to terminate existing management agreements and negotiate new management agreements.
  • $10 million acquisition of ground leased upscale hotel in Toledo, OH.
  • $20 million acquisition of resort hotel in upstate New York.
  • $28 million sale of 160-room resort and spa in Santa Fe, NM including sale of existing liquor license in highly-regulated state.
  • $7 million sale of condo hotel in Telluride, CO.
  • $28 million sale of upscale hotel in Atlanta subject to amending existing hotel management agreement.

Hotel Development
  • Negotiated long-term hotel management agreement; master declaration of covenants, conditions and easements; residential sales, marketing and licensing agreement for a vertical mixed-use development in Atlanta that integrated aspects of hotel, branded residential condos, office, and retail uses.
  • Represented hotel developer in site acquisition, entitlement process and project development activities for new hotel brand. The work included negotiating complex easement and restriction agreements to address issues involved with shared amenities and mixed-use restrictions.
  • Represented hotel developer in negotiating long-term management agreement, technical services agreement and related development/easement agreements for an upscale hotel in a mixed-use project in Charleston South Carolina’s historic district.
  • Counsel to major hotel brand in connection with the creation and implementation of a national program for the corporate acquisition and development of the initial 20 hotels in the launch of the hotel brand. 
  • Represented hotel owner in negotiating complex development, easement and maintenance agreements for two approximately $10 million pedestrian bridges connecting the three largest convention hotels in downtown Atlanta.
  • Represented hotel owner REIT in negotiations with homeowner association and analyzed zoning and land use matters to ensure optimum repositioning of an Atlanta vertical mixed-use luxury hotel and condominium complex.
  
Management and Operating Agreements 
  • Represented hotel brand company in negotiating non-terminable, 50-year term branded management agreements designed to monetize strategic hotel assets.
  • Represented hotel owner in the negotiation of a long-term management agreement and related technical services agreement to redevelop and re-flag a large downtown Atlanta hotel with a luxury hotel brand.
  • Represented the brand manager in the negotiation of a long-term management agreement for mixed use hotel, office, retail, and parking complexes in Baltimore.
  • Represented third-party manager in the negotiation of a long-term hotel management agreement and food services management agreement for an upscale hotel and banquet facility in Atlanta.

 

All Insights

California Rejects Federal Wage and Hour ‘De Minimis’ Doctrine Causing Havoc for Employers

California Rejects Federal Wage and Hour ‘De Minimis’ Doctrine Causing Havoc for Employers

July 27, 2018

The California Supreme Court rejected the federal “de minimis” doctrine for wage and hour regulations. California has now a different standard than federal law for deciding whether small amounts of work “off the clock” must be paid. This decision creates enormous risks for all employers that rely on the de minimis doctrine to determine pay periods for employees.

The Shared Economy

The Shared Economy

August 27, 2017

Should the shared economy be regulated and if so, how?

Hotels 201: Legal and Business Issues in the Purchase and Sale of Hotels - What You Don't Know Can Hurt You

Hotels 201: Legal and Business Issues in the Purchase and Sale of Hotels - What You Don't Know Can Hurt You

May 15, 2017

This is the second of a three-part series on the business and legal issues that arise in developing and owning hotels. In the first podcast, "Hotels 101," attorneys Dan Weede and David Adams discussed the basic legal and business issues unique to developing and owning hotels, including the brand's impact on creating and maintaining the hotel's value; the roles of various agreements in hotel deals, specifically the management agreement; franchise and loan agreements; and the basic metrics used to evaluate a hotel's financial performance. In this podcast, Dan and David discuss some of the more important issues in a hotel purchase and sale agreement, with a particular focus on the legal rights investors need to properly evaluate a hotel acquisition.

California Supreme Court Puts to Rest Labor Code Interpretation

California Supreme Court Puts to Rest Labor Code Interpretation

May 9, 2017

California employees are guaranteed one day of rest every workweek under a new California Supreme Court decision, which will have broad implications for employers in California, especially those in the retail and food service industries.

Hotels 101: Legal and Business Issues in Hotel Development and Ownership, a Beginner's Guide

Hotels 101: Legal and Business Issues in Hotel Development and Ownership, a Beginner's Guide

March 21, 2017

Investing in or developing a hotel property is very different from other types of real estate, and there are numerous issues that first-time investors and developers need to consider. This podcast, the first in a three-part series on the hotel industry, provides an introduction to hotel development and ownership.

Post-Election Predictions: What the Hospitality Industry Can Expect in 2017

Post-Election Predictions: What the Hospitality Industry Can Expect in 2017

January 23, 2017

Like other industries, the hospitality industry is reacting to the surprise victory of President Donald Trump. In this podcast, real estate lawyers David Adams and Dan Weede discuss the impact of the election on the commercial real estate market - in particular, the hospitality industry. They share their observations and predictions on short- and long-term trends, millennials and social media, the share economy, minimum wage, occupancy rates, and financing of large hospitality projects.

Featured Insights

Disclaimer

The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.