Ronald Kornreich wrote an article for the New York Law Journal looking ahead at how management and franchise agreements may be impacted after the COVID-19 pandemic caused drastic disruption to the hotel industry.
“The COVID-19 outbreak is wreaking havoc on the hotel industry. Hotels across the nation have closed their doors and suspended operations. Some have been repurposed to house patients and first responders; those that remain open are functioning at limited capacity and seeing drastic declines in revenue per available room (RevPAR).
While the recovery may seem far off, it is important for hotel owners to review their management and franchise agreements to determine whether to seek modifications in light of closures or suspensions as well as the potential for future lingering effects of the virus on the travel industry.”