Decide how to have preliminary interviews with hotel staff. With a perspective that has earned more than $60 billion in hotel transactions over 25 years, JMBM Global Hospitality Group has developed® cutting-edge knowledge and procedures to facilitate the purchase and sale of hotels around the world, from a portfolio of hotel properties, iconic hotels to individual hotels. It is often a surprise for the owner to discover that these assumptions can be false. According to many state laws, when the hotel operator violates labour laws, the courts have decided that a contractor can be a « common employer » with a third-party operator of the company and that the owner and operator are jointly responsible for the rights at work, regardless of the actual employer. Although the joint employer`s liability does not apply under applicable national law, virtually all hotel management contracts provide that the hotel owner is 100% liable for all wages, benefits, costs and debts, including employee rights against the hotel operator. As a general rule, there are limited exceptions to the owner`s compensation obligations where the operator has committed gross negligence, intentional misconduct or other specific acts. Therefore, even if the hotel owner is not officially designated as an employer, the owner has virtually the same responsibility as if he were the employer of the hotel employees. Union hotels pose particular problems and risks for hotel buyers that can be avoided if they know what they are looking for in hotel acquisition and who need to address the problems. Sometimes a collective agreement or « CBA » (the contract between an employer and a union) provides that the buyer must consent to the takeover of the CBA in the event of a sale of the hotel. When unionized employees are employed by the hotel operator, the purchaser assumes the obligations arising from the union contract simply by resuming the hotel`s operating contract.
Hotel purchase and sale operations: the most advanced procedures for all the essential elements of the agreement. Hotel Purchase and Sale – Essentials Hotel Purchase Contract Key Questions for Work and Employment by Catherine DeBono Holmes and Marta M. Fernandez | Hotel lawyers Needless to say that these areas of the agreement should be examined and designed with great care, as they are linked to each other. Sloppy drafting can lead to unintended consequences, including the buyer`s ability to terminate the contract without any liability until the deadline. There are also drawbacks for the owner that the hotel operator is the employer. In such cases, the owner has more restrictions on what he can do with the employees in the event of termination of the operator or transfer of the hotel. For example, we have seen hotel operators ending their relationship with a hotel, encouraging employees to find new jobs before selling them. The operator informs the staff that the operator is leaving, that everyone loses their job and quickly finds new jobs. WarN Communications can easily be misunderstood by staff, unless the owner can explain that the operator`s termination is rather « technical » and that all employees are interviewed for their former position, pending that virtually all employees are rehired. The Hospital Lawyers of the Global Hospitality Group® Jeffer Mangels Butler and Mitchell LLP form the leading hospital practice in a full-service law firm and the industry`s most experienced legal and consulting team. Our team of experienced hotel lawyers has over $87 billion in hotel transaction experience, with more than 3,900 properties worldwide offering one of the largest virtual databases with market conditions for agreements and financing.