The hospitality sector is one of the key drivers of growth among the services sector in Bangladesh. There is little doubt of the sheer potential this industry holds going forward. Faced with stringent government regulations and constantly changing policy related issues, coupled with red tapism and increasing infrastructure costs, the path to profitability is a tough one in this industry. Lack of proper trained talent and an increasingly demanding customer further compound these issues. Needless to say the brick and mortar hospitality sector is facing its toughest competition ever from the virtual competitors like AirBnB. The tough balancing act between the Owner and Manager and a stark increase in insolvency and bankruptcy cases are further headwinds the market has to contend with.
Drawing upon our experience of over twenty years within the hospitality sector, our hospitality sector practice aims to provide a one stop shop for addressing legal and regulatory issues within the hospitality sector.
We advise on acquisition of land (owned / long term lease); construction & development of hotel; equipment supply and other agreements with sub-contractors and vendors; structuring of investment both private equity and public private partnership; operator & brand selection; financing; operation & maintenance; structuring of the exit in the most tax efficient manner and licensing & technology transfer.
Some major matters undertaken are as follows:
- Legal & regulatory framework for a five-star hotel investment on behalf of a Middle-East based consortium
- Reviewing and finalizing Management & Operation Agreement between Carlson Hotels and SHDL
- Finalizing and reviewing management agreements between Unique Hotel & Resorts Ltd. and Starwood Hotel
- Legal & regulatory framework for a five-star hotel investment for Hyatt Hotels and advised on land acquisition structure