Joint Venture Agreements in Today's Hotel Industry: Navigating New Realities With Restructuring and Rescue Capital
Mastering Economic Challenges and Seizing Opportunities

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Real Property - Finance
- event Date
Wednesday, February 7, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will discuss key legal issues in structuring hotel joint ventures agreements, taking into account the unique issues in this asset class. The panel will focus on critical topics in an evolving market, including restructuring and the role of rescue capital and will provide best practices for attorneys that advise hotel owners, investors, and industry professionals.
Faculty

Mr. Falik leads the firm's hospitality business, which includes equity and debt placement, asset acquisitions and dispositions, portfolio transactions, JV structuring, asset management, management company and brand evaluation, and strategic and capital markets advisory services. Previously, he was a Senior Managing Director and the Head of Hospitality Capital Markets at BGC Real Estate Capital Markets. Simultaneously, he was the Head of Hotel Investment Sales for Newmark Grubb Knight Frank. Prior to that, he was a Managing Director and Head of the Lodging and Leisure Investment Banking group at Cantor Fitzgerald & Co. Prior to joining Cantor Fitzgerald, he was the founder and CEO of JF Capital Advisors, a lodging advisory and principal investment firm.

Guy Maisnik has over three decades of commercial real estate transactions with a strong expertise in hotels and finance. A partner and Vice Chair of the JMBM Global Hospitality Group, Guy is a senior member of the JMBM Chinese Investment Group and a partner in the JMBM Real Estate Department. He advises clients on hospitality transactions, with both a practical business and legal focus, representing buyers, sellers, lenders, opportunity funds, special servicers, REITs and developers in hotel transactions, joint ventures, hotel management agreements and franchise agreements, buying, selling and ground leasing of hotels, complex mixed-used development and fractional and timeshare structuring.

Ms. Gorman focuses her practice on hospitality law, advising clients domestically and internationally on a broad spectrum of matters, including hotel acquisitions, licensing, branding, financings, operation, and development. She has extensive experience in management, licensing, and branding agreements for hotels, restaurants, water parks, and casinos. Ms. Gorman has represented a range of institutional investors in connection with their real estate investments, as well as governmental and quasi-governmental agencies with respect to their real estate holdings. In addition to her practice, Ms. Gorman is the Chair of the Timesharing and Interval Use Committee of the Hospitality Group of the Real Property and Probate Section of the ABA; Professor in Residence (Adjunct) at the Washington College of Law of American University in Washington, D.C., as part of the Hospitality and Tourism Law Program; and on the Board of Advisors of the Georgetown University Law Center’s Hotel & Lodging Legal Summit. She regularly speaks at conferences and seminars on real estate and hospitality topics and is the author of The Law Goddess Blueprint and a contributing writer to the textbook Hotel Law – Transactions, Management and Franchising.
Description
In an era marked by economic complexities, the hotel industry faces a unique set of challenges. Higher interest rates, escalating construction costs, stringent brand requirements, fluctuating travel trends and changes in market demographics, particularly the challenges in central business districts, have created a landscape where traditional models of hotel ownership, development and management are no longer sufficient.
Joint ventures offer significant flexibility and can be tailored to the specific circumstances of the transaction and to the needs of the parties. Thus, real estate equity investments and joint ventures have become an increasingly important part of the investment strategy for hotel properties. The joint venture model for hotel acquisitions offers many benefits, including increased access to capital.
In the current market, there is a need for and access to rescue capital in critical situations. When structured properly, joint ventures can serve as a strategic tool to leverage strengths and mitigate risks. However, joint venture agreements and other related documents are very complex and fiercely negotiated. Real estate and finance counsel must understand all the pertinent issues to successfully evaluate and address economic issues when negotiating and structuring these agreements and hotel transactions.
Listen as our authoritative panel of real estate practitioners and advisers reviews vital legal issues in joint ventures for hotel acquisitions and development. The panel will focus on preferred return/promoted interest, carried interest, cash flow splits, risk allocations, guarantees, unwind provisions, and other major decisions.
Outline
- Traditional preferred return/promoted interests
- Carried interest
- Cash flow splits
- Risk allocations
- Guarantees
- Major decisions
- Unwind provisions
- Restructuring
- Rescue capital
Benefits
The panel will review these and other key issues:
- What are the current economic challenges and their impact on the hotel industry?
- What are new avenues for sourcing and utilizing rescue capital?
- What are current trends in the use of joint ventures to provide financing for hotel development and acquisitions?
- What unique issues in hotel acquisitions impact risk allocation provisions?
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