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Due to the very specific nature of the hotel industry and the day-to-day realities of running a hotel, financing a hotel purchase or project can be complicated. If you are building, buying or selling a hotel, it is critical to have a lawyer on your side with the requisite experience in the hospitality industry and who are tuned in to the unique requirements of hotel owner-operators.
The value Rose Law Firm adds to a hotel transaction far outstrips the cost of having the firm onboard to help with your transaction. It is critical to have experienced counsel on your team.
Hotel Financing has quirks that Rose Law Firm fully understands. We appreciate that lenders require specific data, unique to the hotel industry that must be accumulated before a decision on financing can be made. We have existing relationships with direct lenders and brokers that make the financing journey as smooth as possible. As a single purpose asset, Hotel deals need to be properly presented to lenders. The banks and lenders will complete a risk analysis and our role is to make sure that the legal elements of the deal are as seamless as possible. You can expect an LTV requirement as high as 50% given the numerous variables associated with the hotel industry and hotel ownership, including fluctuating vacancy rates and local economic pressures. It is common for a Hotel lending agreement to require the borrower provide monthly report and to have a reserve fund for future capital expenses.
We are experts at managing the financing process and at obtaining a result that is the least onerous on a go-forward basis. At Rose Law Firm, we are known for being the firm that reduces the otherwise complicated law into easily understandable components to help our clients make excellent business decisions.
Hotel ownership, like most business, requires on-going legal oversight to reduce risk and more importantly to help guide the hotelier on the route to greater and greater profitability. We therefore come along for the legal journey In addition to advising clients on obtaining hotel financing, we also provide guidance on other matters that arise in hotel ownership, including advice on hotel property improvement plans, hotel franchise license agreements, and matters that arise with respect to hotel employees. We do not shy away from the most complex of legal scenarios and regularly help clients through their most thorny and muddled issues.
Rose Law Firm: A Long History of Representing Clients in The Hospitality Industry Throughout Ontario
At Rose Law Firm, we provide tailored legal solutions. We rely on our broad base of experience and multidisciplinary expertise in hotel law, corporate & commercial law, commercial real estate law, and employment law to provide exceptional legal guidance to our clients in the hotel industry. Call us at 416-519-2543 or contact us online for a consultation.