Buying a hotel: never without a good liability guarantee agreement!
Buying a hotel: never without a good liability guarantee agreement! — By Christopher Boinet, Anne Epinat, François Gérard Mondi

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.

The Tough Negotiation Surrounding Guarantees In Off-Plan Hotel Lease Agreements*
The Tough Negotiation Surrounding Guarantees In Off-Plan Hotel Lease Agreements* — By Christopher Boinet, Anne Epinat, Philippe Gauguier

In Extenso Avocats, a subsidiary of the DELOITTE Group · 14 Feb

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.

Five Essential Checkpoints For Successful Buy-Side Due Diligence
Five Essential Checkpoints For Successful Buy-Side Due Diligence — By Anne Epinat, Christian Bardet, Christopher Boinet

In Extenso Avocats · 3 Apr

A proverb states that prudence does not avoid all misfortune, but a lack of prudence never fails to attract it. This is why due diligence is a vital step in buying a hotel. In a hotel acquisition context, the term "due diligence" refers to the investigations carried out by the prospective buyer. These investigations focus both on the hotel assets (i.e. the operating building as a whole) and the company that owns these assets or operates the hotel. Due diligence must also enable the buyer to fully appreciate the hotel's business, understand its structure, environment and market, and analyse the long-term viability of their project.