Event 14 Oct. 2022
Curtis Provides Capacity Training to the Government of Uganda
Event 21 Sep. 2022
Kalidou Gadio Speaks at AIEN 2022 International Energy Summit
Event 06 Jun. 2023
Partner Borzu Sabahi Speaks on Panel in Tashkent Law Spring International Legal Forum in the Republic of Uzbekistan
News 15 May. 2023
Curtis represents e-commerce retailer in its fight to recover monies withheld by PayPal, the global payment giant
Event 08 May. 2023
Partner Irene Petrelli to Participate in ICC YAAF Event
News 02 May. 2023
Curtis Italy with DeA Capital in the Acquisition of Magic S.r.l
Event 23 May. 2023
Partners Luciana Ricart and Fernando Tupa Will Teach a Workshop on Hearings in Investment Arbitration for Arbanza School of Arbitration’s Online Program
Publications 23 Feb. 2023
Fernando Tupa Publishes Book on Forum-Specific Consent to International Arbitration in Investment Agreements
Event 03 May. 2023
Dr. Borzu Sabahi to Speak at ICSID-ADGM Joint Conference: Investment Protection and Armed Conflict
Event 19 Mar. 2023
Sebastiano Nessi speaks at Bahrain Business and Legal Landscape Conference
Event 01 Jun. 2023
Curtis Environmental Chair Charles Howland to Moderate Panel Discussion on Latest Developments in Environmental Due Diligence at ABA Masterclass on Environmental Transactions
News 25 May. 2023
Curtis Files SCOTUS Amicus Brief for Distinguished Law Professors in First Amendment Retaliatory Arrest Case
News 06 Mar. 2023
Russia Sanctions at the First Anniversary: An Overview of Current Sanctions in the US, UK, and EU and How Global Companies Can Navigate Evolving and Conflicting Sanctions Regimes
Client Alert 30 Aug. 2022
The EU Adopts the “Maintenance and Alignment” Sanctions Package
Client Alert 24 Jun. 2021
Update on Virtual Notarization (Executive Order 202.7) During the COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021) — U.S. Insight
Update on Virtual Witnessing (New York Executive Order 202.14) During The COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021) — U.S. Insight
Client Alert 18 Jun. 2020
The alert is available for download here.
The coronavirus pandemic has disrupted the hospitality industry in a major way. As of April 2020, the majority of hotel rooms in America were vacant and many hotel operators are predicting a slow recovery. Hotels nationwide employ a significant number of Americans while the industry accounts for 5% of U.S. gross domestic product.
One hospitality brand, Marriott International, Inc. (“Marriott”), is an example of a company feeling pressure from the COVID‑19 pandemic, as Marriott will extend furloughs of two-thirds of its corporate staff through October 2, 2020. Steve Weisz, the CEO of Marriott Vacations Worldwide Corporation, spoke about the severity of the situation, asserting that even though governmental pressures to keep people socially distant have hampered business the pandemic itself remains the main driver of economic disruption in the hospitality industry. He remarked, “we actually closed 32 of our 110 resorts, because of government restrictions and regulations. But the remainder stayed open, but with very low occupancies.” A growing number of hotels and hospitality-related services are experiencing similar pressures.
Issues arising from forbearance agreements, which are defined as “agreements to refrain from enforcing a right, obligation, or debt”, have struck the hospitality industry. Significantly, over three-quarters of hotel debt borrowers have requested debt forbearance on their loans. As a result, loan services have become overwhelmed with forbearance requests and are struggling to keep up with the pleas for deferred payments. Foreclosure is therefore becoming a harsh reality for many hotels. Unfortunately, these economic issues appear to be only the tip of the iceberg for the hospitality industry.
To combat some of these issues, Alan J. Fuerstman, founder and CEO of Montage International Hotels and Resorts (“Montage International”), a luxury hospitality management company, is focusing his efforts on the long road to recovery and the future of the industry by re-establishing consumer confidence. Fuerstman states that “consumer confidence is our biggest challenge right now as an industry.” He believes this will be crucial to ensuring the health and safety of hotel customers without “compromising the experience they came . . . for in the first place.” Montage International, however, is not alone in its thinking. For example, Hilton Hotels, which recently laid off roughly 25% of its corporate staff, partnered with Lysol in hopes of increasing its guests’ safety as well as restoring consumer confidence in the rooms and facilities. Additionally, Marriott founded a “cleanliness council,” which is also aimed at restoring customer confidence.
Similar to a multitude of other industries disrupted by COVID‑19, the pandemic has brought the hospitality industry to a screeching halt. Therefore, professionals equipped to restructure businesses of this sort will be essential to successfully navigating companies through the Chapter 11 process.
Attorney advertising. The material contained in this Client Alert is only a general review of the subjects covered and does not constitute legal advice. No legal or business decision should be based on its contents.
Restructuring and Insolvency
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