Hotel Lawyers & Solicitors

A lawyer with expertise in hotel and hospitality law can provide invaluable assistance with hotel management agreements (HMAs) in several ways:

• Negotiating key terms: Hotel lawyers experienced in HMA negotiations can advise hotel owners on critical commercial terms such as contract duration, termination rights and fees, and profit-sharing arrangements
• Drafting and reviewing LOIs: An expert in hotel law can assist in drafting and reviewing Letters of Intent (LOIs) before they are signed
• Dispute resolution: Hotel lawsuit lawyers can help to structure effective dispute resolution mechanisms within the HMA to minimise future conflicts
• Risk assessment: Experts can identify potential risks in hotel management agreements
• Industry expertise: Hotel lawyers bring valuable industry knowledge and experience, helping owners understand market standards and negotiate fair terms

The hotel industry is subject to a range of laws and regulations in the UK, including:

• Licensing: Hotels and hospitality businesses must obtain necessary licences to operate, including premise licences, personal licences and special treatment licences
• Food safety and hygiene: Hotels must comply with the Food Safety Act 1990 and related regulations, ensuring proper food handling, storage and labelling
• Health and safety: Compliance with the Health and Safety at Work Act 1974 and related regulations is crucial to maintaining safe, hygienic environments. This involves risk assessments, implementing fire safety measures and ensuring proper staff training
• Data protection: Hotels must implement robust data protection policies to protect guest privacy in line with GDPR
• Employment law: Businesses must ensure the fair treatment of staff and proper employment contracts, including working time regulations, complying with the National Minimum Wage Act 1998 and anti-discrimination laws

If you are facing a dispute, the first step should be to gather and preserve all relevant documentation related to the dispute, before reviewing your contracts and agreements to better understand your rights and obligations. 

In the first instance, you could try to resolve the dispute through communication and negotiation with the other party. If you are unable to resolve the issue, you should consider engaging with specialist hotel law and regulations experts. A lawyer will assess your case and offer guidance on your legal options.

If you are a buyer it is important to consider whether you are going to continue trading without a break or whether you are going to close for refurbishment.

If you are a seller it is important to consider what assets are yours to sell and how you procure services from suppliers. You should also seek advice from our specialist hospitality tax lawyers regarding VAT and Capital Allowances and to prepare properly for a sale.

Issues to consider might be how to deal with bookings and deposits, supply contracts, transfer of the premises licence and any gaming permit, TUPE consultation of employees, transfer of website and social media accounts, VAT opt to tax, Capital Allowances, s.198 elections, transfer of wet and dry stock, as well as transfer of loose trade furniture, effects, plant and equipment.

Financing a hotel project involves various legal considerations. First, you’ll need to structure the financing arrangement, which could include equity investment, loans or a mix of both. 

Key legal issues include:

• Loan agreements: Reviewing the terms of any loans to ensure they are favourable and legally sound. This includes understanding repayment terms, interest rates and any collateral required. In addition, we review fee arrangements, financial covenants, cashflow mechanics, events of default and conditions precedent
• Security and guarantees: Lenders will often require security for loans, such as a mortgages, share security or personal guarantees. A lawyer will help ensure that these agreements are legally enforceable in appropriate circumstances and protect your interests
• Covenants and restrictions: Loan agreements may include covenants that restrict how the property is used or what actions can be taken during the loan term. An expert in hotel law can review these clauses to ensure they do not unduly limit your flexibility
• Tax implications: Hotel financing can have significant tax implications, particularly concerning VAT, capital gains tax and stamp duty. Ensuring that the financing structure is tax-efficient is an important consideration
• Risk mitigation: Protecting your financial interests through well-structured legal agreements, including indemnities or insurance policies, to reduce risks associated with construction delays, cost overruns or underperformance

Protecting intellectual property, such as trademarks, logos and proprietary systems, is vital for safeguarding your hotel's brand.

A hotel lawyer can assist with trademark registration, franchise agreements, hotel management agreements and preventing unauthorised use of your intellectual property.