COVID-19 Epidemic – How It Impacts You (Part 1)

Question: Can I temporarily close my business?

  • Yes. This pandemic has forced many of us to make tough decisions. Temporarily closing may be the best financial option for many of us. If you choose to do so, review your franchise agreement. It may restrict you from doing so. Even so, many hotel chains recognize the hardship hoteliers are facing, and may waive the breach in the agreement. 

Question: Can the Government commandeer my hotel?

  • Yes. The government is required to pay you “just compensation” for using your hotel. In a period without any travelers, this may be an economic life raft. If the government commandeers your hotel, you will be required to follow their orders and will have limited control over the operations of your property.

NOTICE: Attorney advertising. Attorney licensed to practice law in California only. Not intended as legal advice. No attorney-client relationship created hereby.