Buying and Selling a “Business in a Box” Sale and Acquisition Concerns in Hospitality Property Transactions
Probate and Property, January/February 2004, Volume 18, Number 1
By Alexandra R. Cole
Alexandra R. Cole is a partner in the Chicago office of Perkins Coie LLP.
Purchasing a hotel or resort property is much more like buying an ongoing business than buying a commercial real estate property. This is why a hospitality property is often referred to as a “business in a box.” In addition to the normal real estate due diligence issues, the purchase contract must include provisions that are comparable to those found in the purchase contract for a manufacturing plant. This article will not examine the entire list of representations, warranties, and due diligence items that are standard in most transactions, but it will highlight some of the more unique issues that arise in hotel transactions.