Hospitality Industry

News & Analysis as of

Federal Court Upholds FTC’s Authority To Bring Enforcement Actions Over Data-Security Standards; Will Class Actions Follow?

Already, 2014 has been an eventful year in the world of data breaches and cybersecurity. In addition to a flurry of litigation over high-profile breaches at the start of the year, the National Institute for Standards and...more

Keys To... Myanmar: Developing And Investing In Myanmar’s Hotel Industry

In the past three years, Myanmar (or Burma as it is otherwise known), has been enjoying a hotel boom, driven by surging tourist arrivals as the country opens up to economic and political reforms. Tourist arrivals to the...more

Comfort Letters - Comfort for Whom?

If you are buying, building or refinancing a hotel, you'll almost certainly be looking to a bank or other lender to finance the hotel, and when you do, you'll need to negotiate dozens of documents, some long, some short, but...more

Ownership Of Competitive Franchise Systems: Risks And Rewards

Franchise systems have been, and continue to be, sought-after investment and acquisition targets. As a result of this, the demand for ownership of franchise systems often exceeds supply. In fact, there has been almost a...more

"Chain" versus "Independent" A View from an Operator of Independent Hotels

In recent years, the topic of "brand versus independent" has become increasingly popular. Every industry conference has a panel titled the same, numerous articles - and blogs - are being written on the topic by every...more

Hotel Franchise Agreements: 8 Things To Negotiate In Your Next Franchise Agreement

Most branded hotel properties are operated under franchise agreements which are long documents with lots of fine print. They are usually presented to owners as "non-negotiable." This brand position is justified on the basis...more

Top 5 Legal Trends For Hospitality Employers

There is much to be learned from 2013. Below are five legal topics that made headlines last year, and should provide valuable guidance for managing labor and employment law issues in 2014....more

Hospitality And Leisure Franchising And Industry Innovation

Introduction - In previous years this publication has given an insight into the asset light strategies of global hotel operators, an overview of some of the trends in hotel franchising and provided a brief...more

OTK Associates, LLC v. Robert Friedman, et al., C.A. 8447-VCL (Del. Ch. Feb. 5, 2014) (Laster, V.C.)

In this opinion, the Court of Chancery denied in substantial part motions to dismiss claims arising out of a since-abandoned restructuring transaction between Morgans Hotel Group Co. and its largest investor, Yucaipa...more

EEOC Sues Nick's Restaurant for Disability Discrimination, Sexual Harassment, Retaliation

Restaurant/Sports Bar Revoked a Reasonable Accommodation for a Disabled Server and Fired Her After She Complained, Federal Agency Charges - HOUSTON - PNS Investments, Inc. operating as Nick's Restaurant and Sports Bar,...more

Do You Want Health Insurance with Your Entrée?

The Los Angeles Times is reporting that restaurant-goers are paying more than just tax and tip when dining out—a new policy at an L.A. restaurant means that diners will also be contributing to covering the cost of the...more

Extended Stay Hotels Will Pay $75,800 to Settle EEOC Pay Discrimination Lawsuit

Hotel Paid Women Less Than Male Employees, Federal Agency Charged - BALTIMORE - Extended Stay Hotels will pay $75,800 and provide significant equitable relief to settle a pay discrimination lawsuit brought by the U.S....more

The Womble Carlyle Economic Development Digest - February 19, 2014

Womble Carlyle’s Economic Development Digest aggregates news, opportunities and legislation impacting business in the United States....more

The Increasing Importance of Using E-Verify as Part of Your Employment Compliance Plan

On January 23, 2014, U.S. Citizenship and Immigration Services (USCIS) announced that more than 500,000 companies now use E-Verify. E-Verify is an internet-based system that allows employers to verify a new hire’s work...more

Let's Clear the Air about Hotel Management Agreements

1. Owners and Managers are not partners. One of the common statements we hear from owners and managers is that the management agreement "aligns the interests" of the owner and the manager, and that the manager is "just like a...more

Ferreting Out the Frauds: a Virginia Court Orders Yelp To Identify Anonymous Users

Social media is widely used in the hospitality industry for everything from promoting sales to recruiting new talent. Facebook, Twitter, Pinterest, Foursquare, and a number of other sites provide hoteliers and restaurateurs...more

JMBM's Hotel Developer Forum: LA wants 4,000 new hotel rooms stat!

Hotel Developer Forum in Los Angeles With hotel development beginning to blossom in many national markets where the cost to buy a hotel substantially exceeds the cost to build one, JMBM's hotel lawyers recently held a...more

How to Find the Right Regional Center and Negotiate the Terms of an EB-5 Financing for your Hotel Project

Why EB-5 financing is important to hotel developers now: Financing for new hotel development is still in short supply, even for experienced hotel developers. As a result, many hotel developers are exploring the EB-5 financing...more

EB-5 and the Tenant Occupancy Issue as Applied to Hotel Employees

Since the release of its “Tenant Occupancy” Notice on February 17, 2012, the U.S. Citizenship and Immigration Services (“USCIS”) has begun issuing Requests for Evidence on pending regional center applications and exemplar...more

Reminder for IRS Rule Regarding Tips and Automatic Gratuities for Your Employees!

Hospitality industry employers sometimes add an automatic gratuity to the customer’s bill, especially for large customer groups, e.g., automatic 15% to 20% for a party of six or more customers. Beginning January 2014,...more

Brand Franchise Issues in Hotel Purchase and Sale Transactions

Key issues for buyers and sellers of branded hotels operating under franchise agreements. Buying or selling a hotel operating under a brand name requires special attention – the existing franchise agreement will be...more

Using Multiple Sources of Alternative Financing for Hotel Development

Four years after the collapse of the traditional financing markets for new hotel developments, most hotel developers are still struggling to find the necessary financing to fill the capital stack required to build new hotels....more

The Target and Neiman Marcus breaches: What hoteliers need to know

The Target and Neiman Marcus problem. The massive security breach of Target's customer data may affect more than 110 million Americans -- potentially about 1 in 3 persons living in the United States. Followed in quick...more

Ordinance Authorizing Warrantless Inspections of Hotel Records is Unconstitutional

Motel owners challenged a Los Angeles Municipal Code provision requiring hotel guest records to be made available to any Los Angeles Police Department officer for inspection. The United States Court of Appeals for the Ninth...more

Miami Hotel Outlook For 2014

Attracting International Travelers - The economic outlook for the Miami hotel market continues to be positive for 2014. Many expect strong demand and continued growth in the hospitality sector due to increasing numbers...more

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