Hospitality

Hospitality

Prague is one of the most popular tourist destinations in the world and the Czech hotel industry is currently booming. There are more than a thousand hotels and Bed & Breakfast in Prague alone, of which fifty are five-star hotels. The city boasts more than 500 four-star and three-star hotels, along with 300 Bed & Breakfast and countless furnished apartments and Airbnb accommodations. Most hotels are concentrated in Prague, but Carlsbad (Karlovy Vary) and Marienbad (Marianské Lázně) are also important tourist centers with a large number of hotels.

Buying or leasing a hotel in Czech Republic is not always a straightforward matter. A number of legal issues must dealt with (among them verification of ownership rights and easements, and compliance with local regulations such as parking requirements.

 

rutland & partners is the top hospitality law firm in the Czech Republic. Its Czech lawyers have long and thorough experience in hotel acquisition and development in Prague and other Czech cities. We have assisted worldwide hotel chains like Sheraton, Marriott and Rocco Forte with numerous management contracts and leases.

 

 

Key contacts

As a former Head of Real estate group in White Case Prague, Monika Rutland specialized in hotel management agreements and hotel development in the Czech Republic. She represented Rocco Forte in connection with development of a 5 star hotel in the center of Prague. She laso represented Sheraton and Marriott in regard to their Czech hotel management agreements. Further, she represent different hotel owners in Prague in construction contracts for hotel refurbishments.

Hotel Construction and Development

rutland & partners lawyers have assisted clients to develop several hotels in Prague with zoning permits, construction permits, construction tenders and construction contracts. We routinely deal with local authorities during the permitting process and assure that the client successfully obtains all the permits that are necessary for operating a hotel.

 

Our services include:

• Compliance with zoning regulations (including administrative appeals in case of a permit denial)
• Construction permits (including, but not limited to, resolution of parking issues and prolongation of permits if necessary)
• Drafting construction tender documentation and participating in negotiations with tender participants
• Drafting and negotiating construction contracts
• Assisting clients in the reconstruction of existing hotels, or transforming a building from other uses into a hotel
• Obtaining hotel construction financing and drafting documentation on behalf of the client
• Resolving construction disputes (including cases of bankruptcy of a general contractor)

Hotel Acquisitions

rutland & partners specialize in acquisitions of Czech hotels by foreign investors. Monika Rutland and Vojtech Makovec have successfully represented numerous clients with purchasing hotels in Prague and Carlsbad, including Starwood, Rocco Forte, IBE Group, Meinl Bank, and others.

 

In the course of these transactions we have assisted clients in:

• Due diligence with regard to ownership, easements, permits, management contracts and leases
• Negotiating and drafting sales and purchase agreements, fee protection agreements, and joint venture agreements
• Negotiating with Czech banks for acquisition financing and drafting required documentation

Hotel Lease Agreements and Management Agreements

The rutland & partners hospitality team has represented clients in concluding many hotel lease and management agreements, including Sheraton Prague, Marriot, Rocco Forte and IBE Group. Due to our experience with the most sophisticated hotel management agreements in the Czech Republic, we can assure our clients that their transactions will fully comply with Czech law.

 

We provide:

• Due diligence relating to hotel leases and management agreements
• Negotiating and drafting management agreements and lease agreements
• Representing clients in the process of terminating management and lease agreements

Day to Day Hotel Operations

We have also helped our clients with their day to day operations, mostly in concluding supply contracts and handling employment issues. Such issues include:

 

• Czech employment contracts, including model Czech employment contracts
• Compliance with Czech employee health and pension insurance requirements
• Termination of employment relationships
• Drafting and negotiating supply contracts