Commercial Real Estate For The Hospitality Industry

Why Hospitality Real Estate Is Different

Hospitality is a unique blend of real property, brand, licenses, and experience. Lease economics depend on percentage rent, co-tenancy, and kick-out rights. Hotel transactions hinge on flag, management agreements, and key performance covenants. Restaurants and bars must align build-out schedules with liquor licensing, conditional use permits, health department approvals, and ADA compliance—all while controlling tenant improvement (TI) dollars and delay risk. We understand these moving parts, negotiate provisions that actually matter day-to-day, and coordinate with architects, brokers, contractors, and consultants so deals stay on track.

Core value: we translate operating realities—turn times, P&L pressures, staffing, brand standards—into legal terms that safeguard profitability and optionality.

End-to-End Counsel for Hospitality Assets

From the first site tour through grand opening and eventual exit, we provide full-cycle representation structured for hospitality timelines. Whether you’re a chef-owner signing your first flagship lease or an investment group rolling up select-service hotels, our team tailors scope and cadence to your goals and budget.

Site Selection & Due Diligence

• Letter of intent (LOI) strategy aligned with brand, parking, venting, patio, signage, and delivery logistics
• Zoning and entitlement checks (conditional use, live entertainment, outdoor dining, late hours)
• Liquor license diligence (quota availability, proximity rules, license transfers, escrow requirements)
• Building systems/venting feasibility, grease interceptor, rooftop/shaft rights, and noise mitigation
• Environmental, title, and survey review; access/egress and shared-area easements

Acquisitions & Dispositions

• Purchase and sale agreements with hospitality-specific reps, warranties, and post-closing adjustments
• Key transfer items: liquor licenses, health permits, HMA/FFA assignments, vendor contracts, POS data
• Operating cash reconciliation, inventory, gift card liabilities, and FF&E schedules
• 1031 exchanges and portfolio trades; ground lease bifurcations and re-set negotiations

Development, Ground Leases & Build-Outs

• Ground leases with rent commencement tied to permit issuance, pad delivery, and utility readiness
• Construction contracts (GMP, design-build) with liquidated damages, schedule relief, and change-order controls
• Work letters allocating TI, shell vs. turnkey scope, delay remedies, and landlord delivery standards
• Mechanics lien strategy, insurance and indemnity programs, and contingency planning

Restaurant, Bar & Hotel Leases

• Percentage rent, natural breakpoints, and sales-reporting covenants designed for seasonality
• Exclusive use, radius restrictions, and curated co-tenancy for complementary mix
• Kick-out rights and relocation clauses tied to revenue/occupancy metrics and fair TI reimbursements
• Hours of operation, live-music, patio, valet, and delivery provisions that reflect actual operations
• Grease, venting, hood, and odor clauses; waste handling; and after-hours loading access

Licensing, Compliance & Operations

• Liquor licensing strategy (new, transfer, expansion of premises) and escrow coordination
• ADA and building-code compliance guidance to reduce demand letter and litigation exposure
• Health department, fire/life-safety, entertainment, and sidewalk café permits
• Hotel management agreements (HMA), franchise/license agreements, and brand standard negotiations

Protecting Economics & Managing Risk

In hospitality, small drafting choices can swing six figures annually. We focus on the clauses that drive NOI, keep doors open, and preserve exit options. Our goal is not to “redline everything,” but to negotiate leverage where it counts and remove friction that can derail openings or compress margins.

• Rent & CAM predictability: caps on controllable expenses, audit rights, transparent gross-up, and utilities carve-outs
• Delay management: targeted rent-abate and outside dates tied to permits, inspections, and landlord work
• Operational flexibility: delivery/pickup lanes, patio/rooftop use, music/entertainment windows, signage visibility
• Transfer & exit: reasonable assignment/sublet rights, franchise approvals, and recapture protections
• Insurance & indemnity: hospitality-specific risk allocation for foodborne illness, liquor liability, and events

We also build dispute-avoidance into your documents: clear notice and cure periods, stepped negotiation, and mediation provisions designed to resolve problems before they hit the dining room—or the press.

Who We Serve

We represent hospitality stakeholders across the lifecycle and asset spectrum. Whether you operate a chef-driven concept, a multi-unit QSR portfolio, a boutique hotel, or a regional brewery with taprooms, our team understands the operational details that make your business distinct.

• Independent restaurants, chef-owners, and hospitality groups
• Bars, lounges, nightclubs, and live-entertainment venues
• Breweries, wineries, and distilleries (production and taproom/retail)
• Boutique, select-service, and full-service hotels; extended-stay and mixed-use
• Developers, landlords, and hospitality-focused investors
• Franchisees/franchisors and third-party managers

Our Process

1. Strategy Call: We clarify concept, brand standards, timing, capital plan, and critical path items.
2. LOI & Term Sheet: We set the business terms that drive value before paper gets long.
3. Diligence: Title, survey, entitlements, licensing pathway, and build-out feasibility.
4. Document Execution: Targeted drafting and negotiation focused on economics and timing.
5. Permitting & Build-Out: Work letters, construction contracts, change-order controls, and inspections.
6. Opening & Operations: Last-mile compliance, vendor/management agreements, staff training points.
7. Growth & Exit: Portfolio standardization, refinancing, sale/assignment, and brand transitions.

Frequently Asked Questions

How early should legal counsel get involved?

Ideally at LOI stage. Negotiating venting, patio, signage, delivery, and liquor-license contingencies up front saves months later and avoids costly re-designs.

What makes a great restaurant lease?

Transparent CAMs, predictable rent steps, realistic delivery dates, TI allocation that matches scope, strong exclusives, kick-out rights, and operational flexibility for outdoor dining and late hours.

Can you coordinate licensing and build-out?

Yes. We map liquor and health permits against your construction schedule, align inspections, and embed outside dates/rent abatement to mitigate delay risk.

Results that Matter

Examples include negotiating percentage-rent structures that preserved margins through seasonal swings; securing patio and signage rights that lifted foot traffic; shepherding hotel license transfers and HMA amendments on tight timelines; and resolving ADA demand letters without litigation—allowing owners to focus on guests rather than court dates.

Ready to Move from Vision to Opening Night?

Hospitality rewards speed and precision. We help you pick the right site, secure the right rights, and open on schedule—so you can serve guests and grow your brand. If you’re evaluating locations, preparing an LOI, negotiating a restaurant or hotel lease, or planning an acquisition or sale, we’re ready to help.

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