Hotels and Convention Centers

  • Overview
  • Attorneys

Kutak Rock has actively participated in convention center financings as well as financings for publicly owned hotels throughout the nation. We understand the complex legal and tax issues that accompany such financings, having served in myriad roles, including bond, underwriter’s, special tax and transaction counsel.

One recent convention center financing for which Kutak Rock’s national public finance attorneys served as bond counsel involved our firm counseling the city from the initial stages of the financing, including obtaining passage of the enabling statute and conducting the bond referendum. We also assisted the city in amending its charter to establish the operator of the convention center as well as worked closely with private donors to structure the non-bond components of the financing, including the sale of naming rights. With respect to the naming rights, we successfully addressed significant tax issues with the Internal Revenue Service that could have jeopardized the federal tax‑exempt status of the bonds.

An extension of our experience with convention center financings is our experience with financings for publicly owned hotels. Studies have indicated that the success of a convention center is tied to the presence of a headquarters hotel, but given the general unavailability of conventional financing without heavy public subsidies, a publicly owned hotel financed with tax‑exempt bonds is an attractive option. Our national public finance lawyers have served in numerous roles for more tax‑exempt hotel financings throughout the United States than any other law firm. These are complex federal tax regulations and rules applicable to management contracts for tax‑exempt financed projects. As a result of our extensive experience with each of the major upscale hotel operators, we often are called upon to serve as transaction counsel in order to educate all parties and their counsels regarding the multifaceted legal issues surrounding hotel financings.

Understanding the complex legal issues involved with convention center and hotel financings enables the firm to provide legal services to our clients that is efficient and cost effective. Not only are we involved with the financing documents, but we also bring our considerable resources to bear in negotiating the various real estate, management and construction agreements related to the project.