Hotel Lawyer on hotel management agreements and operator breach of duty. It may be an exaggeration to say that "JMBM wrote the book on hotel management agreements," but we certainly know the area and have at least written a few chapters in that book. We have been helping owners, developers and lenders with many hundreds of hotel management agreements over the past 20 years. We have negotiated, re-negotiated, terminated and litigated almost every aspect of them, so the only thing surprising about the latest jury verdict handed down on January 25, 2008 against Marriott International and Ritz-Carlton is that it shows a continuing arrogance and disconnect of operators who choose to ignore their contractual and fiduciary duties. (Search "Management Agreements" at )

With the mortgage meltdown, a troubled economy and the presidential candidate primaries dominating the news this month, it was a profound comment made by good-natured and well-liked New Mexico Governor Bill Richardson that caught my attention. Remember Richardson? Who could forget? He was the mostly ignored candidate during one of the early contentious Democratic Primary televised debates who quipped, “I’ve witnessed more civility in hostage negotiations”.

Hotel Lawyer Los Angeles Hotel Investment Conference. A year ago today, we predicted that the hotel industry might be acquired through equity-fund driven acquisitions. (Size no longer matters, and Two deals that may change the lodging world forever). Since that time, many REITs and Hilton were gobbled up (Hilton acquisition) before the capital markets all but seized up in August 2007.

In 1998, the Asian American Hotel Owners Association identified a set of standards called the 12 Points of Fair Franchising by which to judge the actions of franchise companies. Now, nine years later, AAHOA has updated the 12 points and has embarked on a survey of franchisors to assess their compliance with these fair franchising standards.

While we were napping- in the past nineteen years, since the Indian Gaming Regulatory Act of 1988, casino expansion has transformed America. Prior to that legislation, only Las Vegas and Atlantic City legalized casinos (in 1978).According to the American Gaming Association (AGA), at the end of 2006 there were 460 commercial casinos in 11 states which reached a record $32.42 billion in gaming revenues. While four out of five American adults agree that gaming is an acceptable activity, more than 26% of the U.S. adult population visited a casino in 2006...

When I wrote an article following Karen and my first ever cruise to Alaska this summer, several readers admonished me not to judge the cruise experience based on a single voyage... I agreed... So did the strategic marketing director for Regent Seven Seas Cruises. After reading my article, Regent offered to host Karen and me on any seven day Regent cruise if I would write a follow up “comparison” piece identifying Regent as the cruise line. And I was assured that I would have sole control of editorial content.

SPECULATING ON WHETHER TO BUY OR BUILD IS very challenging. Looking back over 2007 offers a mixed bag of predictive indicators. The first quarter brought warnings of occupancy slowdowns from astute sources like Smith Travel Research, yet acquisition activity surged and continued through the first half. There were continual questions about “What’s the right cap rate?” But establishing the “right” cap rate did not seem as important as purchasing the right strategic property. Nevertheless, there are solid reasons to buy hotel real estate even at premium prices, particularly when the asset’s makeup includes quality location, solid destination, diverse and consistent demand generators, solid brand affiliation and market barriers to entry.

IHG’s Great Idea - InterContinental Hotels Group extended-stay brand, Candelwood Suites diverted nearly 260 tons of material from landfills during bedding renovations at 55 hotels this summer.

While sales and marketing-related labor costs have experienced moderate growth and advertising has declined, more dollars are being directed to “Selling” expenses, according to a recent article by PKF Consulting (“Focus of Hotel Sales Personnel to Shift from Selling Room Nights to Capturing More Dollars”, by Robert Mandelbaum and Viet Vo). “Selling” expenses - - trade shows, travel, and prospect and client entertainment - - grew 9.2 percent in 2006, by far the largest increase of all major cost categories for sales and marketing departments, according to the PKF article. What this information suggests is that maybe hotel owners and operators have rediscovered the importance and value of more personalized direct selling as a means to increasing revenue through higher average daily rates.

The new generation of hospitality Sales professionals can become so focused on their “Sales pitch”, e.g., FABs (features, advantages and benefits), that they overlook all too often the importance of pausing in order to seek the prospects’ reactions and buy-in. Keep in mind that with any prospect encounter the goal should be to close the business. Chances of doing so increase significantly when the Sales pro can determine as quickly as possible whether or not the prospect is favorably impressed or if the interest level is sustained. Today’s decision makers don’t have time for lengthy selling monologues.