Hospitality

Rapid growth of hospitality market inUkrainein the past five years generated demand in qualified legal advisors with keen insight into hospitality market and the needs of its players. That was the time Arzinger started to raise its hospitality team, thoroughly implementing international standards and best practices to maintain the highest quality of legal services.    

As hospitality projects often require experience in multiple areas of law, Arzinger has created special team covering all aspects of hospitality projects on a "one-stop-shop" principle: starting from construction, project financing, tax structuring and up to negotiation of complex hotel management and franchising agreements, and owners vs. operators litigation.

The hospitality team at Arzinger represents hotel owners, developers, hotel managers and lenders and has already got solid track records to prove that clients can rely thereon.

 

Developing new hotel projects

Before the investor launches construction of the hotel it should question itself:

Is the land plot feasible for construction of the hotel;

  • Of what category this hotel claims to be, and what legislative requirements shall be met by "one star"- "five stars" hotels;
  • Who will manage the hotel: the international or local hotel management company under well-known hotel brand, or non-branded hotel manager or, maybe, the owner of the hotel wants to self-manage;
  • Is antimonopoly clearance required for transfer of the hotel into management;
  • How project financing will be structured;
  • What tax optimization strategy to follow.    

Our experts will help you to create the most efficient development strategy, craft relevant solutions, and develop complex joint ventures and corporate structures.

 

Hotel finance  

Hotel projects usually involve advanced financing solutions. There are different types of financing, each of which requires competent tax advice with a view on specificity of hotel management:

  • loan financing through either loans of a holding company or the bank institution;
  • equity financing by holding company;
  •  issue of securities to attract third-parties finance. 

Each of financing strategies has its pros and contras and we are about to find the best solution for each client and embody even the most sophisticated ones.

 

Hotel Sales and Acquisitions

Ukrainian market is full of investment-attractive privatized hotels offered for sale. At this point investor should engage experienced advisor to check privatization history and all related risks.   

Having extensive experience of working with privatization projects Arzinger team has an in-depth understanding of all privatization pitfalls.  

 

Taking care of franchise and hotel management agreements

International hotel brands increasingly enter Ukrainian market, and the concept of professional franchise and hotel management is now more than just words – it is an upward widespread trend. We don't stand aside and let the manager/franchiser dictate its conditions of doing business with the hotel owner - we help the owners to get the optimal terms with the right operator and franchiser.

There is always one thing for the owners to remember: franchise and hotel management agreement is more than agreement – it's like marriage contract - you have to score twice before you cut once. That is why it is better to engage the experienced hospitality attorneys, who are very much aware where to "cut" and how to "cut" in the best interests of the owner. 

 

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Hospitality & Restaurants

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