When purchasing a hotel, counsel must advise clients that the due diligence must include analysis of the physical assets associated with the property (i.e., the hotel structures, parking, systems, equipment, and inventories), as well as the operating business conducted at the hotel facility and the relevant markets and environment.
When developing a proposed acquisition price, the buyer must make assumptions about future market conditions and the hotel's performance within that market. A discounted cash flow on stabilized operating projections will reflect these assumptions. Thus, a preliminary business plan must reflect assumptions as to physical facilities and condition, management, affiliation, and other factors to assess the potential acquisition realistically.
In today's market, the time allotted for due diligence, deposits going non-refundable, and closing has been significantly compressed. All sophisticated buyers know they must act quickly. Counsel should assist in coordinating the due diligence team and start the process as soon as possible. Counsel should also coordinate with clients to prioritize and push critical areas of due diligence to identify and evaluate potential deal-breakers early.
Many buyers do not focus enough on seller representations and warranties--even with significant disclaimers in the purchase agreement. Diligent preparation can flush out critical physical and operational hotel issues that only a seller or its management company would understand. Even if the seller is unwilling to make a specific representation and warranty on a particular condition, focusing on the issue upfront will help frame the buyer's post-signing due diligence.
Likewise, indemnification clauses are not a haven for buyers. The language is typically inadequate to protect a buyer from additional costs avoidable with proper due diligence. Indemnification generally applies only for breaches of representations and warranties, and if the seller limits or qualifies its representations and warranties, the indemnification provision may not be triggered.
Listen as our authoritative panel discusses the legal concerns in hotel acquisition and due diligence, conducting a proper investigation, and evaluating the data to provide the buyer with more alternatives, lower costs, and negotiating power to deal with the issues.
Watch Now
Understand the terms of your cell tower lease and avoid provisions which harm property values and the future use of the property.This program provides commercial landlords, developers, investors, units of government and all property owners with the A to Z basics of cell tower leases and lease sales and is taught by two faculty members with decades of experience representing property owners on cell tower leases and sales. This program covers entering into a lease, renewing a lease and selling a lease while emphasizing rents, sales prices, terms and avoiding provisions which harm property values and the future use of the property. This material will help property owners and attorneys who only occasionally deal with cell leases be better able to negotiate with wireless industry personnel who work on leases every day. The program starts by covering key business issues in cell site leases, including lease rates, who gets the revenues from additional antennas or carriers being co-located at a site, the rent increases possible at renewals, avoiding clauses that interfere with the normal use of the property, and why 5G service should have little impact on the preceding. Why leases for rooftop and side-mounted building antenna sites are more complicated, requiring special provisions, is then addressed. After covering more conventional lease terms the program addresses the sale of cell leases and future leasing rights. This includes typical sale prices (often around 200 times monthly rents); when to sell and when not to sell; and how to get the best price and terms in a sale. An emphasis is avoiding sales terms which the presenters have seen destroy a property's value by preventing its normal use and development. For municipalities, the program addresses additional key items in cell leases and lease sales that are unique to them. For all wireless landlords, the program covers such topics as lease term and terminations, access requirements, radio frequency interference, design and camouflage, and radio frequency emissions safety. This program is particularly important for commercial landlords, developers and the like, who often own very attractive sites for cell leases, but are most at risk from poor lease or sales terms harming the value of the property with the lease.
Watch Now
As the acuity care needs of senior living residents rise, so does the need for more efficient workflows and better outcomes. Technology can help simplify both of these areas, by providing customizable data that highlight changes in condition and quality of care, and by informing residents' families about the care their loved ones are receiving.
On September 8, at 2:00 pm Eastern, Seniors Housing Business magazine will host a webinar exploring how technology is helping to improve senior care across the country. Webinar attendees will learn about the latest innovations in care transition management and preventive healthcare.
Topics will include:
The latest trends in technology-enabled senior care
How technology can help simplify workflows and improve care transitions
The importance of involving families in the care planning process
How to implement technology solutions to support these goals
Panelists: Amy Ostrem, Vice President, Strategy & Portfolio Management, MatrixCare; Cassie Diner, Clinical Product Manager, MatrixCare; Kelly Danielson, Clinical Product Manager, MatrixCare; Joy Herring, VP of Clinical Analytics, LTC Consultants; and the moderator, Eric Goldberg, Seniors Housing Business.
This discussion is sponsored by MatrixCare, an industry-leading provider of post-acute EHR to facility-based care settings and home care/home health and hospice organizations.
Watch Now
Residential Real Estate Council
Learn the most common issues and concerns first-time home buyers have when moving into a home. Jay will also demonstrate key home maintenance tips that will help your clients during their first year of owning a home. Plus, get some generational selling insights into what Millennials are looking for, how to speak their language and make them feel comfortable during one of the biggest steps they will take in their lives. This webinar recording will help you learn how to be a better trusted advisor to your first-time home buyer clients and guide them through the process.
Watch Now