In Extenso Avocats · 17 Dec
The recent Covid crisis has highlighted the resilience of the hotel sector in France. An investment in a hotel (as in a boutique hotel) should also be regarded by investors as a “pleasure asset”. When benefiting from the French favourable tax reinvestment regime, what should investors be looking at if they wish to make the switch to hospitality?
In Extenso Avocats · 1 Mar
On behalf of owners, Airbnb rents out furnished apartments to short stay, non-resident transient visitors. These rents are subject to the regulation of the City of Paris and this regulation has long stated that the activity of short-term furnished rentals to transient visitors, in return for payment, may not be carried out in premises used for residential purposes, pursuant to the French Construction and Housing Code. This same regulation requires owners to request prior permission for a change of use, pursuant to Articles L.631-7 and L.631-7-1 of the French Construction and Housing Code.
In Extenso Avocats · 24 Feb
More than ever, off-plan hotel leases are making headlines in the leisure real estate industry. Stemming from real estate law professional practices, off-plan hotel leases reconcile the legal and financial interests of three distinct actors: the developer (seller), the investor (owner) and the operator (tenant).
In Extenso Avocats · 24 Nov
With an asset and liability guarantee agreement (Garantie d'actif et de passif, or GAP, under French law), the buyer obtains a contractual warranty for ensuring that the price it is paying matches the value of the company being sold. A post-sale tax adjustment or industrial tribunal proceedings in favour of an employee? A GAP agreement covers disputes prior to the sale, if these disputes were undeclared or if insufficient provisions were made for them.
Off-plan hotel leases are often complex and lengthy contracts to negotiate. The parties involved generally engage in several rounds of negotiations, and both the owner and tenant must bitterly debate the guarantees imposed by the former, whose financial stakes are high.