2nd Jul 2015

Are you currently going through a dispute involving a hotel ground lease? If so, you should know that hotel ground leases in California are commonly disputed following conflicts between the municipal administration and the private lessee, especially following natural disasters such as floods, hurricanes, tornados or earthquakes; or changes in circumstances such as the closure of an adjacent convention center. In these cases, it is also common for cases to go mediation rather than litigation, which of course can save all of the parties involved a huge amount of time, money and resources. Mediation tends to be much shorter, more private and more amicable than litigation, which can be extremely taxing on both parties. When it comes to hotel ground leases in California, we should also consider the fact that the structure of the ground rent can play a huge factor in how these disputes are settled.

A dispute over the hotel management agreement is also common when the land is leased by a private party from a public entity that is the owner of the land, because the lessor may have approval rights over any proposed change in the operator or brand. Lessors and lessees should protect themselves and obtain the sound legal and business advice of experts with the required skills to settle these disputes quickly in order to continue with the business operations at hand. Remember that there is no such thing as a perfect lease, and a dispute will make you realize this.

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