1. Hotel Development and Real Estate
Hotel and hospitality asset development involves legal decisions about property acquisition, zoning compliance, financing structure, and construction contracts that determine whether a project reaches completion on schedule and within budget.
How Should Hotels Conduct Legal Due Diligence before Acquisition?
A hotel property acquisition requires due diligence covering the physical condition of the property, existing contracts, and the zoning regulations governing permitted hospitality uses. Land use and zoning counsel must evaluate whether the property's current use is conforming under the applicable zoning ordinance, whether any conditional use permits survive the change of ownership, and what approvals are required for any planned renovation or expansion.
How Should Construction Contracts Be Structured for Hotel Projects?
A hotel development or renovation project involves multiple overlapping contracts among the developer, architect, general contractor, and subcontractors, and real estate development financing counsel must ensure that each contract clearly allocates responsibility for cost overruns, construction delays, and defective work, and that the lender's consent requirements are satisfied before the developer makes any material changes to the project scope.
2. Premises Liability and Guest Safety
Hotel and hospitality operators owe guests a duty of care that requires them to maintain their premises in a reasonably safe condition, to warn guests of known hazards, and to provide adequate security against foreseeable criminal acts by third parties.
What Defense Strategy Applies to Hotel Premises Liability Claims?
A hotel guest who is injured on the premises typically alleges that the hotel failed to maintain a safe condition, failed to warn of a known hazard, or failed to respond appropriately when a dangerous condition was reported. Premises liability defense counsel must evaluate whether the hotel had actual or constructive notice of the condition, whether the inspection and maintenance procedures were reasonable, and whether the guest's own negligence contributed to the injury.
When Are Hotels Liable under Dram Shop and Liquor Liability Laws?
A hotel bar or restaurant that serves alcohol to a visibly intoxicated guest or to a minor may face dram shop liability when that guest subsequently injures a third party. Dram shop liability defense counsel must evaluate whether the hotel's staff followed responsible beverage service training protocols, whether the intoxication was apparent to a reasonable server at the time service was provided, and whether the hotel's monitoring procedures satisfied the applicable standard of care.
3. Labor, Employment, and Ada Compliance
Hotel and hospitality operations are among the most labor-intensive industries, and the combination of round-the-clock schedules, tipped workers, and high employee turnover creates significant wage and hour, discrimination, and ADA compliance exposure.
How Should Hotels Manage Wage and Hour Compliance?
Hotels that employ tipped workers and employees across multiple classifications must comply with the FLSA's overtime and minimum wage requirements and applicable state wage and hour laws. Labor laws counsel must evaluate whether the hotel's timekeeping system accurately records all compensable time, whether the tip pooling arrangement includes only eligible employees, and whether the hotel's pay stubs include all information required by applicable state law.
How Should Hotels Respond to Ada Accessibility Claims?
The Americans with Disabilities Act requires hotels to provide accessible facilities and services to guests with disabilities, and ADA compliance counsel advising a hotel must evaluate whether guest rooms, public areas, and digital booking systems comply with the current ADA Standards for Accessible Design, whether staff are trained to respond appropriately to accommodation requests, and whether any physical barriers can be removed without undue hardship.
4. Franchise Agreements and Data Privacy
Hotel and hospitality franchise relationships create ongoing obligations for both the franchisor and franchisee, and the increasingly digital nature of hotel operations creates significant data security and privacy obligations.
Why Must Hotel Franchise Agreement Disputes Be Carefully Managed?
A hotel franchise agreement defines the rights and obligations of both the brand and the property owner, and franchise laws counsel representing a hotel franchisee must evaluate whether the franchisor's proposed termination is supported by the specific defaults identified in the agreement, whether the franchisee has been given adequate notice and opportunity to cure those defaults, and whether any of the franchisor's demands constitute a modification that requires the franchisee's consent.
How Should Hotels Respond to a Guest Data Breach?
A hotel data breach that compromises guest credit card information, loyalty program credentials, or personal identification data triggers notification obligations under the breach notification laws of each state where affected guests reside. Data breach litigation counsel must coordinate the forensic investigation, regulatory notification, and guest communication processes to minimize legal exposure and reputational damage.
28 Oct, 2025
