Overview
The hospitality sector is one of the key drivers of growth among the services sector in India. There is little doubt of the sheer potential this industry holds going forward…. Yet heavy is the head that wears the crown. Faced with stringent government regulations and constantly changing policy related issues, coupled with red tapism and increasing infrastructure costs, the path to profitability is a tough one. Lack of proper trained talent and an increasingly demanding customer further compound these issues. Needless to say the brick and mortar hospitality sector is facing its toughest competition ever from the virtual world of AirBnB’s. The tough balancing act between the Owner and Manager and a stark increase in insolvency and bankruptcy cases are further headwinds the market has to contend with.
Drawing upon our experience of over 16 years within the hospitality sector, ELP’s hospitality sector practice aims to provide a one stop shop for addressing legal and regulatory issues within the hospitality sector.
Services
Our practice includes :
Acquisition of Land
- Due diligence reviews, covering transactional, financial, environmental, tax and compliance related issues.
- Verification of title to the land and drafting and negotiation of sale deeds, lease deeds or development rights agreements or other conveyance deeds
Construction & Development of Hotel
- Drafting, negotiation and execution of documentation including: Construction contracts, architect’s contracts, interior design consultancy contracts and other contracts for the appointment of experts for the development phase
- Equipment supply and other agreements with sub-contractors and vendors.
Structuring of Investment
- Designing and implementing tax efficient structures to identify tax exposures and the most optimal tax structure.
- Risk analysis of project documentation, covering legal, structuring, commercial and tax issues.
- Drafting, negotiation and execution of documentation including joint venture agreements, investment agreements, shareholders’ agreements, private equity documentation and other equity and/or quasi-equity funding documentation.
Operator & Brand Selection
- Drafting, negotiation and execution of documentation including: Hotel management agreements, technical services agreements, franchise agreements, marketing and publicity agreements for the provision of services by brand-owners for development of the hotel; and
- Trademark license agreements for the license of trademarks and service marks by brand-owners.
Financing
- Drafting, negotiation and execution of documentation including facility agreements and security documents such as guarantees and documents of charge and lien.
- Assistance in refinancing the project.
- Drafting of resolution plans and assistance in the insolvency process
Finalisation of consultants & service providers
- Drafting, negotiation and execution of documentation with consultants and other entities for provisions of pre-opening and post opening services.
Operation & Maintenance
- Advice on compliance processes under all applicable laws, for example, labour law, corporate law, indirect tax laws and developmental and/or environmental regulations.
- Advice on issues faced in the day-to-day operations of the hotels.
- Assistance in further investments into the hotel.
- Resolution of disputes, either through the conciliation process or through arbitration.
Exit
- Structuring of the exit in the most tax efficient manner.
- Drafting, negotiation and execution of documentation including share sale and share purchase agreements.
Thought Leadership
Taxation & The Hospitality Sector
7 Apr 2023 |
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The Hospitality Sector: Contractual Conundrums
7 Apr 2023 |
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Labour & Employment & The Hospitality Sector
7 Apr 2023 |
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Dispute Management & The Hospitality Sector
7 Apr 2023 |
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Consumer Laws & The Hospitality Sector
7 Apr 2023 |
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Financing & The Hospitality Sector
7 Apr 2023 |
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Bankrupt hotel assets big draw with investors
6 Dec 2023 |
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The Hospitality Sector: Contractual Conundrums
5 Apr 2022 |
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Tourism funding and promotion agencies laud Budget proposals for the sector
8 Feb 2022 |
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Union Budget - An Analysis by Economic Laws Practice
1 Feb 2022 |
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Legal implications of recent issues in the hospitality sector in India
24 Sep 2021 |
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ELP Knowledge Series – Part 2 of 2021
15 Sep 2021 |
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Guest Data – Right to be forgotten
25 Sep 2021 |
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Relief to Hotels in Maharashtra
20 Jul 2021 |
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What are the duties of directors in ailing hotel companies?
30 Jun 2021 |
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What recourse do Hyatt Regency Mumbai employees have?
12 Jun 2021 |
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ELP - Knowledge Series – Part 1 of 2021
27 Apr 2021 |
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Budget 2021 fails to provide much needed impetus
16 Feb 2021 |
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Union Budget 2021: An Analysis
2 Feb 2021 |
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What Marriott’s Second Data Breach Means for the Hospitality Industry?
30 Mar 2020 |
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The Indian Hospitality Industry: A Comprehensive Guide to Managing COVID-19
29 Apr 2020 |
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Union Budget 2020: An Analysis
2 Feb 2020 |
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ELP - Knowledge Series - India Update - Part 4 of 2019
22 Jan 2020 |
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Legal Obligations of Lost Properties -infra hospitium
4 Dec 2019 |
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Who is liable for car theft from a hotel parking lot? A ...
3 Dec 2019 |
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ELP - Knowledge Series - India Update - Part 3 of 2019
3 Sep 2019 |
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OYO’s stand vindicated: What CCI ruling means for booking portal vs hotel ...
28 Aug 2019 |
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Going Bananas over Indemnities!
30 Jul 2019 |
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ELP Knowledge Series - India Update Part 2 of 2019
7 May 2019 |
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Prevention of sexual harassment in the hospitality industry: Whose cross is it ...
10 Apr 2019 |
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ELP Knowledge Series - India Update Part 1 of 2019
19 Feb 2019 |
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Marriott eyes over 10% in Raheja’s Chalet Hotels
28 Jan 2019 |
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Budget 2019: Judicial Reform Is What This Economy Needs Now
2 Feb 2019 |
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Interim Union Budget 2019 - An Analysis
1 Feb 2019 |
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ELP Knowledge Series - India Update Part 2 of 2018
10 Sep 2018 |
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The Hospitality Industry in India - A guide to Legal Issues
5 Apr 2019 |
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Hospitality – Indian Legal Issues
6 Dec 2023 |
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ELP Knowledge Series - India Update Part 1 of 2018
14 Jun 2018 |
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