Structuring Equity Joint Ventures for Hotel Properties: Recapitalization During COVID-19

Preferred Return, Carried Interest, Cash Flow Splits, Risk Allocations, Guarantees, and Key Issues

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


Conducted on Thursday, December 17, 2020

Recorded event now available

or call 1-800-926-7926
Course Materials

This CLE course will discuss key legal issues in structuring joint ventures for hotel recapitalizations, taking into account the unique issues in this asset class during the pandemic. The program will focus on key issues and joint venture agreement provisions, including preferred return/promoted interest, carried interest, cash flow splits, risk allocations, guarantees, unwind provisions, and other major decisions.

Description

Real estate equity investments and joint ventures have become an increasingly important part of the real estate investment arena, particularly hotel properties. Travel restrictions and health concerns due to COVID-19 have had an extreme impact on hotel properties and their operations. The joint venture model for hotel acquisitions offers many benefits, including increased access to capital.

The joint venture agreement and other related documents are very complex and fiercely negotiated. Real estate and finance counsel need to understand all the pertinent issues to successfully evaluate and mitigate risk and address economic issues when negotiating and structuring a joint venture agreement for hotel transactions.

Listen as our authoritative panel of real estate practitioners and advisers reviews key legal issues in joint ventures for hotel acquisitions and development, taking into account unique issues in this asset class. The panel will focus on preferred return/promoted interest, carried interest, cash flow splits, risk allocations, guarantees, unwind provisions, and other major decisions.

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Outline

  1. Traditional preferred return/promoted interests
  2. Carried interest
  3. Cash flow splits
  4. Risk allocations
  5. Guarantees
  6. Major decisions
  7. Unwind provisions

Benefits

The panel will review these and other key issues:

  • What are current trends in the use of joint ventures to provide financing for hotel development and acquisitions?
  • How are preferred return/promoted interest provisions structured?
  • What unique issues in hotel acquisitions impact risk allocation provisions?

Faculty

Falik, Jonathan
Jonathan Falik

Founder and CEO
JF Capital Advisors

Mr. Falik leads the firm's hospitality business, which includes equity and debt placement, asset acquisitions and...  |  Read More

Gorman, Tara
Tara K. Gorman

Partner
Loeb & Loeb

Ms. Gorman focuses her practice on hospitality law advising clients domestically and internationally on a broad...  |  Read More

Maisnik, Guy
Guy Maisnik

Partner
Jeffer Mangels Butler & Mitchell

Guy Maisnik has over three decades of commercial real estate transactions with a strong expertise in hotels and...  |  Read More

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