Hotel and Hospitality: Liability, Labor, Franchise, and Data Defense

A hotel property acquisition requires due diligence covering the physical condition of the property, existing contracts, and the zoning regulations governing permitted hospitality uses. Land use and zoning counsel must evaluate whether the property's current use is conforming under the applicable zoning ordinance, whether any conditional use permits survive the change of ownership, and what approvals are required for any planned renovation or expansion.

A hotel development or renovation project involves multiple overlapping contracts among the developer, architect, general contractor, and subcontractors, and real estate development financing counsel must ensure that each contract clearly allocates responsibility for cost overruns, construction delays, and defective work, and that the lender's consent requirements are satisfied before the developer makes any material changes to the project scope.

A hotel guest who is injured on the premises typically alleges that the hotel failed to maintain a safe condition, failed to warn of a known hazard, or failed to respond appropriately when a dangerous condition was reported. Premises liability defense counsel must evaluate whether the hotel had actual or constructive notice of the condition, whether the inspection and maintenance procedures were reasonable, and whether the guest's own negligence contributed to the injury.

A hotel bar or restaurant that serves alcohol to a visibly intoxicated guest or to a minor may face dram shop liability when that guest subsequently injures a third party. Dram shop liability defense counsel must evaluate whether the hotel's staff followed responsible beverage service training protocols, whether the intoxication was apparent to a reasonable server at the time service was provided, and whether the hotel's monitoring procedures satisfied the applicable standard of care.

Hotels that employ tipped workers and employees across multiple classifications must comply with the FLSA's overtime and minimum wage requirements and applicable state wage and hour laws. Labor laws counsel must evaluate whether the hotel's timekeeping system accurately records all compensable time, whether the tip pooling arrangement includes only eligible employees, and whether the hotel's pay stubs include all information required by applicable state law.

The Americans with Disabilities Act requires hotels to provide accessible facilities and services to guests with disabilities, and ADA compliance counsel advising a hotel must evaluate whether guest rooms, public areas, and digital booking systems comply with the current ADA Standards for Accessible Design, whether staff are trained to respond appropriately to accommodation requests, and whether any physical barriers can be removed without undue hardship.

A hotel franchise agreement defines the rights and obligations of both the brand and the property owner, and franchise laws counsel representing a hotel franchisee must evaluate whether the franchisor's proposed termination is supported by the specific defaults identified in the agreement, whether the franchisee has been given adequate notice and opportunity to cure those defaults, and whether any of the franchisor's demands constitute a modification that requires the franchisee's consent.

A hotel data breach that compromises guest credit card information, loyalty program credentials, or personal identification data triggers notification obligations under the breach notification laws of each state where affected guests reside. Data breach litigation counsel must coordinate the forensic investigation, regulatory notification, and guest communication processes to minimize legal exposure and reputational damage.