The Hospitality Practice

L&K provides a full range of legal services to the hospitality industry.

L&K has been involved in every aspect of the development process, including pre-acquisition environmental and due diligence evaluations, land acquisitions, negotiating land use and entitlements with cities, counties and the California Coastal Commission, negotiating architectural and construction contracts, and obtaining certificates of occupancy and business licenses. We know where the land mines are hidden that can create liability for our clients and in turn, can shift liability away from our clients. We also utilize contracts that reward high quality, prompt performance and penalize poor or untimely performance. Our expertise streamlines the entitlement and construction process, which allows our clients to open their hotels sooner.

L&K has been involved in the sale and in the purchase of a multitude of hotels, ranging from select service to full service luxury. As a consequence we encourage our clients to use our form letter of intent from the outset to avoid making unnecessary concessions. L&K has developed specially tailored forms that specifically address all of our clients’ concerns (even the ones that they are not aware that they should have). We have developed sound relationships with appraisers, surveyors, escrow and title companies who provide high quality and cost-effective services for our clients.

Having represented both lenders and borrowers, we are intimately aware of the traps and pitfalls of financing documents and how to avoid them. We also know where and how to be creative when necessary to find or qualify for financing and limit guarantor exposure. We have worked with local banks, national institutions and Wall Street to borrow money and refinance hotels.

L&K regularly provides advice to clients on the issues that arise in the ownership and management of hotel properties, including negotiating the initial management contract, ground leases with cities, leases with operators, retail, restaurant and utility tenants. We are also involved in the termination of existing retail and restaurant leases. We also advise our clients on how to limit Americans with Disabilities Act (“ADA”) and defend frivolous ADA lawsuits.

Our attorneys include individuals who have practiced at boutique bankruptcy firms and are intimately familiar with how to utilize the threat of bankruptcy or actually filing a Chapter 11 to solve issues with unreasonable lenders and creditors. Because we know the language of lenders and the constraints imposed upon them by the regulators, we are able to craft solutions that are win-win for everyone. Our major strengths are our knowledge, creativity, flexibility and common sense.

L&K’s tax department advises on all forms of 1031 exchanges; the entity best suited for our owners and investors; and tax strategies to minimize tax burdens. We plan not only for the immediate operations, but also for the ultimate disposition strategy. Our firm regularly advises clients on how to mitigate the estate, gift and generation-skipping transfer tax consequences related to property transfers.

… L&K has been involved in the sale and in the purchase of a multitude of hotels …