Branded Residences and the Hotel Owner’s Right of Termination
Partner Todd Soloway, Chair of Pryor Cashman’s Real Estate Litigation Group, co-authored an article entitled “Branded Residences and the Hotel Owner’s Right of Termination.” The article appeared in the August 21, 2013 edition of The New York Law Journal.
There has been a recent resurgence, especially in New York and Miami, in the development of luxury hotels that contain branded, privately owned residences. As examined in two earlier articles co-authored by Soloway, hotel owners have the unfettered right to terminate the managers of their hotels, resulting in the removal of that manager’s brand from the face of the hotel and consequently from the face of the private residences within the hotel.
The new article examines the potential liability, if any, that hotel owners may have to private residence owners when a hotel owner exercises that right to terminate the manager and remove the brand from the private residences, which were likely initially purchased under the expectation that they would always have attached an exclusive, luxury brand name.
Soloway argues that, provided the hotel owners have complied with state and federal disclosure statutes, the fact that the hotel contains branded residences should neither preclude the hotel owner from exercising its termination right nor expose the hotel owner to liability from the owners of the private residences when that right is actually exercised.
Please click here to read the article in the New York Law Journal.
