Cases - Hotel Business/Operations

Misrepresentation, mismanagement and breach of the management contract by major international hotel company to owner-developer regarding the acquisition of a 250-room hotel in Anaheim, CA. Torrance, CA

Cash flow evaluation of 11 hotels located in Los Angeles, San Diego and Killeen, TX relating to the prospective aggregate value for use in a marital dispute. Base year and present year income statement reviews conducted for court’s assistance in matter. Superior Court Appointed 730 Expert Witness. Los Angeles, CA

Parking dispute involving a chain affiliated 400-room hotel and parking authority in Virginia regarding permitted use of garages by hotel employees resulting in material unpaid parking invoices to parking authority. Key issues were hotel employee use, accepted hotel industry practices and acquisition due diligence responsibilities by hotel owner associated with hotel garage use. Richmond, VA

Retained to evaluate alleged damage claims of water and mold intrusion due to faulty EIFS for six nationally affiliated hotels against nine contractors by the hotel developer/owner/operator. Developer/owner claimed business interruption and recovery period in addition to cost of remediation. Key hotel operating issues examined included 4-year NOI results, 4-year franchise inspections for each hotel, license agreements, loan terms and market dynamics for each of the six hotels to recommend the optimal timing to conduct the repairs vis-à-vis each hotel’s occupancy patterns. Successfully refuted developer’s position of timing and recovery period based on personal hotel renovation operations experience substantiated by each property’s operating results and their markets historical demand patterns. Martinsburg, WV and Charleston, WV.

Retained as an operating hotel expert regarding the erosion of a capital account and the related mismanagement of a hotel held in a partnership. Key operating, balance sheet and accounting issues examined included inappropriate cash distributions by the hotel management company, inappropriate credits to the management and other unrelated companies, co-mingling of funds by the management company and one of the general partners, and unilateral extension of the management agreement at terms unjustified by operating performance and market conditions. Baltimore, MD

Retained to evaluate the management contract regarding the breach of a right of first refusal clause to purchase a historic inn located in North Carolina. Assignment required an evaluation of the management contract, inn’s cash flow performance and preparing an NPV analysis and estimated value determination based on a 10-year pro-forma. Opinion Letter used as basis in mediation settlement agreement. High Point, NC

Licensee dispute based on hotel licensor selling the entire brand to another chain, whose development and marketing standards were inferior to original brand. Retained by a licensee to evaluate hotel franchising. Selected licensee properties were converted to the successor’s brand with a dilution of distribution, inconsistent building standards and inferior reservation network. Issue further compounded by a second subsequent chain sale to budget-oriented organization; the collective sales, property identity changes resulted in material revenue declines at the client’s lodging facility. Market share, building standards, reservation efficiency, frequent-stay programs and distribution were key issues examined in this matter. Cleveland, OH

Police Commission, City of Baltimore regarding the redeveloped Business Operations Plan and operating modification for a 102-room transient lodging facility to be in compliance with the Community Neighborhood Board demand. Baltimore, MD

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