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Hotel Lending

Kutak Rock’s finance and commercial practice lawyers have extensive experience structuring and documenting hotel loans, including term, construction, development and revolving credit facilities, as well as acting as counsel to administrative agents and co-lenders in connection with syndicated loan transactions. The firm’s experience extends to all aspects of hotel loan transactions, including:

  • Loan structuring, including equity investor and taxable REIT subsidiary structures. 
  • Undertaking due diligence, including property level diligence and management and franchise agreement review. 
  • Drafting and negotiating commitment letters and transaction documents, including PIP funding and earnout advance provisions, cash management and pledge agreements, and intercreditor and subordination agreements with mezzanine lenders.
  • Negotiating comfort letters and collateral assignments and subordinations of management agreements, including with managers affiliated with franchisors.
Hotel and Convention Centers

Kutak Rock is also an active participate in convention center financings as well as financings for publicly owned hotels throughout the nation. The complex legal and tax issues that accompany such financings has resulted in the firm serving in a number of roles in these financings, including bond, underwriter’s, special tax and transaction counsel. The success of a convention center is often tied to the presence of a hotel and our national public finance lawyers have served in numerous roles for tax-exempt hotel financings throughout the United States. There 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 franchisors, we often are called upon to serve as transaction counsel to assist all parties and their counsel regarding the multifaceted legal issues surrounding hotel financings.

Litigation, Bankruptcy, Restructuring and Workout Practice

The hotel finance industry is cyclical in nature, and the firm has extensive experience representing parties in connection with litigation, bankruptcy, restructuring and workout proceedings involving hotels located throughout the United States. Through the firm’s experience in courts across the country, we offer not only a working knowledge of the latest developments and techniques, but also a current, practical and working knowledge of the national environment in which they are applied.