Financing Ground-Up Hotel and Hospitality Development Deals: Legal and Financial Issues

Navigating Completion Guaranties, GMP Construction Contracts, Ground Leases, Post-Completion Recourse, Management and Branding

Recording of a 90-minute CLE webinar with Q&A

Conducted on Thursday, August 17, 2017
Recorded event now available

This CLE webinar will discuss legal and financial issues involved in the financing of ground-up hotel development deals. Specifically, the program will discuss completion guaranties, GMP construction contracts, impact of ground leases, reserves, post-completion recourse, management and branding.


A wave of ground-up development is driving a surge in commercial construction projects, and new hotel and hospitality developments are a hot asset class in the current construction market. In addition to debt and equity financing, counsel must address other financial issues and legal hurdles.

Developers seeking construction loans find nonrecourse debt more difficult or costly to obtain, so post-completion recourse guaranties must be factored into the financing. Construction loans may require repayment guaranties but always require completion guaranties. The loan guarantor’s risk exposure may be minimized by proper budgets, contingencies or guaranteed maximum price bids from the general contractor.

Ground leases are a key component of ground-up hotel development but pose unique and complex risks for lenders and borrowers. Recognizing key differences between ground leases and other commercial leases and the impact of these differences is essential.

Listen as our authoritative panel of hotel practitioners and finance professionals analyzes key legal and financial issues in ground-up hotel development deals. The panel will discuss financing challenges, completion guaranties, GMP construction contracts, impact of ground leases, reserves, post-completion recourse, management and branding.


  1. Completion and other guaranties
  2. Guaranteed maximum price construction contracts
  3. Financing challenges
  4. Impact of ground leases
  5. Reserves
  6. Post-completion recourse
  7. Management
  8. Branding


The panel will review these and other key issues:

  • What are the key differences between post-completion recourse and completion guaranties? What financial risks do these guaranties present?
  • What are current market conditions for ground lease financing for hotel development?
  • What are the complexities presented by ground leases?
  • What role does hotel management and branding play in the ability to finance the hotel development deal?


Jonathan Falik, Founder and CEO
JF Capital Advisors, New York

Mr. Falik leads the firm's hospitality business, which includes equity and debt placement, asset acquisitions and dispositions, portfolio transactions, JV structuring, asset management, management company and brand evaluation, and strategic and capital markets advisory services. Previously, he was a Senior Managing Director and the Head of Hospitality Capital Markets at BGC Real Estate Capital Markets. Simultaneously, he was the Head of Hotel Investment Sales for Newmark Grubb Knight Frank. Prior to that, he was a Managing Director and Head of the Lodging and Leisure Investment Banking group at Cantor Fitzgerald & Co. Prior to joining Cantor Fitzgerald, he was the founder and CEO of JF Capital Advisors, a lodging advisory and principal investment firm.

Tara K. Gorman, Partner
Perkins Coie, Washington, D.C.

Ms. Gorman represents sellers, owners and licensors in the acquisition, disposition, finance, development, management and leasing of major hospitality, resort and commercial properties. Her property deal portfolio includes domestic and international hotels, office buildings, condo-hotels, water parks, casinos, restaurants and retail stores. Additional areas of practice depth include telecommunications and finance. She counsels clients on management and licensing and branding agreements, website service, telecom licensing and lease agreements. She frequently speaks and writes on emerging real estate issues, including on brand standards in hotel management agreements and best practices in hotel sale negotiations.

Guy Maisnik, Partner
Jeffer Mangels Butler & Mitchell, Los Angeles

Mr. Maisnik has nearly three decades of commercial real estate finance with a strong expertise in hotels. He is Vice-Chair of the firm’s Global Hospitality Group and advises clients on hospitality transactions; representing lenders, opportunity funds, banks, special servicers, owners, REITs and developers in hotel transactions.


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Real Estate Law Advisory Board

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Ballard Spahr

Jacob Bart


Stroock & Stroock & Lavan

Brian W. Blaesser


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Ronald B. Grais


Sugar Felsenthal Grais & Hammer

Ren R. Hayhurst


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