Buying a hotel — our top six points
By Jessica Nugent
Whether you are an experienced hotelier or just starting out in the hotel industry, the process of buying a hotel can be a daunting prospect. From financing the purchase, to structuring the deal, to due diligence, to negotiating the commercial terms, there are many things to consider and each will affect the success of your new venture. However, if managed well, the acquisition of an already established hotel can be an effective method of growing an existing portfolio or launching a new one.
Does the hotel you are targeting fit in with your ethos, financial structure and long-term business plan? If you already have a portfolio of hotels, will this one sit well within the group? While each hotel is a standalone business, it is important not to lose sight of the brand that you are trying to build and establish.
The chances are that the hotel you have set your sights on will already be owned by a company. You will have to decide whether to buy that company — including all its rights, assets, liabilities and obligations — or whether to buy just the hotel property and business. There are various legal, financial and tax implications of this decision and it is wise to seek advice early on before committing to either option…
If you are registered and logged in to the site, click on the link below to read the rest of the Goodman Derrick briefing. If not, please register or sign in with your details below.
News from Goodman Derrick
News from The Lawyer
Briefings from Goodman Derrick
The introduction of compulsory pre-tribunal claim conciliation and forthcoming changes to the transfer of undertakings regulation
This year saw a raft of changes to employment law being introduced by the coalition government and 2014 will be no different.
In Société des Produits Nestlé SA v Cadbury UK Ltd, the Court of Appeal gave careful consideration to the application of Article 2 of the Trade Marks Directive 2008/95/EC.
Analysis from The Lawyer
You don’t have to be a big firm to innovate and thrive in a downturn, as our look at the lower half of the UK 200 shows. We pick 10 inspiring stories
Our latest in-depth analysis of UK M&A legal bills reveals a good performance by smaller firms and success fees on the rise