Hotel Purchase and Sale Agreements

Summary

This practice note discusses the key provisions of a hotel purchase and sale agreement and provides an introduction to the other major transaction documents typically included in a hotel acquisition and disposition. A hotel purchase and sale agreement contains unique provisions that are not typically found in other commercial real estate contracts. A purchase and sale agreement for a hotel must be drafted to reflect the sale of an operating business that delivers services and amenities to guests on a daily basis. Unlike other commercial real estate contracts, a hotel purchase and sale agreement must account for operational concerns such as employee transitions, food and beverage operations, inventory and guest baggage turnover, as well as franchise relationships (in many instances).