Reconfiguring Hospitality’s Financing Arrangements

COVID-19 and its aftermath are testing the relationships between commercial hospitality real estate owners and operators like never before.  Recovery from this crisis will require temporary and permanent changes to the contractual and business relationships that govern this important industry.  Commercial real estate owners and developers, as well as attorneys, brokers, and finance professionals will need to adjust their expectations and practices to thrive in the post-COVID environment.

The circumstances presented by the effect of COVID-19 on the hospitality industry were unexpected and unprecedented.  Earlier epidemics, such as SARS, were but a faint shadow of what emerged over the last 18 months.  The industry did not expect, nor was it prepared for, the scale of the crisis with case counts surpassing SARS in weeks and reaching a global spread unprecedented in modern times.