The Hotel Purchase and Sale Agreement is a specialized real estate contract designed for transactions involving hospitality properties in the United States. This document is essential when transferring ownership of hotel properties, whether they are independent establishments or branded franchises. The agreement covers not only the real estate aspects but also operational considerations unique to hotels, such as existing bookings, employee contracts, and service agreements. It requires careful attention to both federal and state-specific regulations, particularly regarding real estate transfers, hospitality operations, and employment law. The document typically includes provisions for due diligence, operational transition, and compliance with industry-specific requirements.
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1. Parties: Identification of buyer and seller with full legal names and addresses
2. Background/Recitals: Context of the transaction and brief description of the hotel property
3. Definitions: Key terms used throughout the agreement
4. Purchase Price and Payment Terms: Details of consideration, deposit, and payment schedule
5. Property Description: Detailed description of real property, improvements, and personal property included
6. Due Diligence: Inspection period, access rights, and documentation requirements
7. Representations and Warranties: Statements of fact by both parties regarding the property and transaction
8. Closing Conditions: Prerequisites for completing the transaction
9. Closing Procedures: Process and requirements for transfer of ownership
10. Default and Remedies: Consequences of breach and available remedies
1. Employee Matters: Provisions addressing treatment of existing employees and related obligations
2. Franchise Agreement: Provisions addressing existing franchise relationships and transfer requirements
3. Management Agreement: Provisions addressing existing management contracts and transition arrangements
4. Environmental Matters: Specific provisions addressing environmental concerns and remediation requirements
5. 1031 Exchange: Provisions facilitating tax-deferred exchange structure if requested by either party
1. Schedule A - Property Description: Legal description of real property
2. Schedule B - Personal Property Inventory: List of FF&E and other personal property included in the sale
3. Schedule C - Contracts: List of existing contracts and agreements affecting the property
4. Schedule D - Environmental Reports: Environmental studies and assessments
5. Schedule E - Title Documents: Title commitment and exceptions
6. Schedule F - Operating Statements: Historical financial performance records
7. Schedule G - Employee Information: List of employees and terms of employment
8. Schedule H - Permits and Licenses: List of current operational permits and licenses
9. Schedule I - Form of Deed: Form of transfer deed to be used for closing
10. Schedule J - Due Diligence Documents: List of required due diligence materials
Relevant legal definitions
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