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Hotel Purchase Agreement Template for Philippines

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Key Requirements PROMPT example:

Hotel Purchase Agreement

"I need a Hotel Purchase Agreement for acquiring a 250-room beachfront resort in Boracay, Philippines, with closing expected by March 2025, that includes provisions for retaining the existing hotel management company and handling ongoing guest reservations."

Document background
The Hotel Purchase Agreement is a crucial document used in the Philippines for the acquisition of hotel properties, combining elements of real estate transfer with operational business acquisition. This agreement is essential when purchasing operational hotels, hotel development projects, or hotel properties intended for renovation or rebranding in the Philippine market. The document must comply with various Philippine regulations, including the Tourism Act of 2009, Local Government Code, and relevant property laws. It typically includes provisions for the transfer of real estate, operating assets, employees, licenses, and existing contracts, while addressing specific Philippine regulatory requirements such as tourism authority approvals, environmental compliance certificates, and local government permits. The agreement is particularly important in the Philippine context due to specific local requirements for foreign ownership, tourism enterprise zones, and special economic zones.
Suggested Sections

1. Parties: Identification of the seller and purchaser, including complete legal names and addresses

2. Background: Context of the transaction, brief description of the hotel property, and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including purchase price, payment terms, and what is included in the sale

5. Purchase Price and Payment: Detailed breakdown of the purchase price, payment schedule, deposit requirements, and adjustment mechanisms

6. Conditions Precedent: Conditions that must be satisfied before closing, including regulatory approvals and due diligence requirements

7. Pre-Closing Covenants: Obligations of both parties between signing and closing, including operation of the hotel business

8. Closing: Closing procedure, deliverables, and timing requirements

9. Seller's Warranties: Warranties regarding property title, operations, employees, licenses, and other material aspects

10. Purchaser's Warranties: Warranties regarding authority, funding, and capability to complete the transaction

11. Employee Matters: Treatment of hotel employees, transfer arrangements, and related liabilities

12. Tax Matters: Tax obligations, allocations, and indemnities

13. Indemnification: Indemnification obligations of both parties

14. Termination: Circumstances allowing termination and consequences

15. Governing Law and Dispute Resolution: Choice of Philippine law and dispute resolution mechanisms

16. General Provisions: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Hotel Management Arrangements: Required if existing hotel management agreements are to be maintained or new ones established

2. Intellectual Property: Required if hotel brand or other IP rights are included in the transaction

3. Environmental Matters: Detailed section required if environmental issues are identified in due diligence

4. FF&E Transfer: Detailed section required if furniture, fixtures, and equipment transfer needs special treatment

5. Transition Services: Required if seller will provide post-closing operational support

6. Financing Cooperation: Required if purchaser requires seller's cooperation for transaction financing

7. Anti-Money Laundering Compliance: Detailed section required for high-value transactions or international buyers

8. Force Majeure: Detailed section recommended if in areas prone to natural disasters or other force majeure events

Suggested Schedules

1. Property Description: Detailed legal description of the hotel property and included land

2. Asset Inventory: Comprehensive list of FF&E, operating equipment, and other tangible assets included

3. Excluded Assets: List of assets specifically excluded from the sale

4. Employee Information: List of employees, positions, and key employment terms

5. Contracts and Licenses: List of operational contracts and licenses to be transferred

6. Outstanding Reservations: List of existing guest reservations and advance bookings

7. Environmental Reports: Summary of environmental assessments and reports

8. Form of Deed of Absolute Sale: Form of document to transfer property title

9. Closing Deliverables: Detailed list of documents required at closing

10. Purchase Price Allocation: Breakdown of purchase price among various asset categories

11. Permitted Encumbrances: List of accepted liens or encumbrances on the property

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses




































Relevant Industries

Hospitality

Real Estate

Tourism

Property Development

Hotel Management

Food and Beverage

Leisure and Entertainment

Commercial Property

Asset Management

Property Investment

Relevant Teams

Legal

Real Estate

Mergers and Acquisitions

Property Development

Hotel Operations

Asset Management

Finance

Compliance

Due Diligence

Risk Management

Property Management

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Hotel General Manager

Real Estate Director

Head of Acquisitions

Property Development Manager

Legal Counsel

Hotel Operations Director

Asset Manager

Investment Manager

Due Diligence Manager

Compliance Officer

Property Manager

Tourism Licensing Officer

Environmental Compliance Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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