12th Mar 2015

Developing a hotel project is something that typically takes years to go from mental thumbnail to ribbon-cutting.  In the middle is a laundry list of challenges and hurdles, ranging from regulatory or zoning barriers to supplier and vendor problems, labor disputes, inspection difficulties, and nervous investors.   Sometimes it might seem impossible that any hotel project ever gets completed.

When they do, chances are good that hotel development dispute resolution had something to do with it, because it is a rare hotel project indeed that gets to completion without at least one major conflict.  When those conflicts come up there are generally two basic choices of approach: One, threats and work delays; or two, alternative hotel development dispute resolution.

The Process

Hotel development dispute resolution works similarly to other forms of dispute resolution:

  • A neutral is identified.  Ideally, the neutral should be a certified and approved mediator or arbitrator, as well as an expert in hotel development and construction.
  • When all sides of the dispute have approved the neutral, he or she will meet individually with all parties to gather information.
  • The neutral then composes a plan for the resolution of the conflict based on the information and statements provided by all parties.  This can often be accomplished very quickly, especially if the chosen neutral is very experienced in the field.
  • The parties either approve the resolution and get back to work, or offer feedback for the adjustment of the agreement.

Typically, this process of dispute resolution is very effective and can get even very large hotel development projects back into motion.  Generally speaking, dispute resolution is much faster and cheaper than litigation, which can freeze a hotel project for months or even years, often bringing financial disaster to everyone involved.  Resolving the conflicts before they grow into full-fledged legal disputes is quicker, cheaper, and better for all parties.

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