Topics in Hotel Law & Gaming

LAW 950a, Welcome to the HTL Program

LAW 950b, Hotel Brands, Part 1

LAW 950b, Hotel Brands, Part 2

LAW 950b, Hotel Brands, Part 3

A. Welcome to the Program & to the Hotel Industry.

Faculty: Steven Shapiro & Steve Goldman

  1. Welcome to the HTL Program
    https://media.wcl.american.edu/Mediasite/Play/0a8b543c03f346b9ba52c24f4139229d1d

• What is hotel law?
• What are the traditional and non-traditional careers?
• Learn about law, operations, roster, and glossary
• Faculty include private practice attorneys, in-house counsel, industry executives, and hotel managers
• Async recorded sessions, sync live online sessions with breakout exercises

B. The Hotel Brands.

Faculty: Juan Corvinos

  1. Part 1, Introduction
    https://media.wcl.american.edu/Mediasite/Play/d747718c5bc54e548047e0b84437c41f1d

• Background of Juan Corvinos
• Basics of Hilton
• Discussion of the major brands

  1. Part 2, Hilton Brands
    https://media.wcl.american.edu/Mediasite/Play/be9cc3bc9e2546429a5d6e0bd61e7a521d

• Differentiation of the brands
• Identification of the brands

  1. Part 3, Customer Loyalty Program
    https://media.wcl.american.edu/Mediasite/Play/caf1932ddff04369a107874e49ee395f1d

• The importance of customer loyalty programs
• Methods to add members

  1. Part 4, Hilton Corporation
    https://media.wcl.american.edu/Mediasite/Play/cc06ebfb1c4d4b8786062515d46700dd1d

• Executives
• History of the company

  1. Part 5, Development of the Hilton Brands
    https://media.wcl.american.edu/Mediasite/Play/b5a6a1ffcd6e4b9ab41dada33c73ce2e1d

• Process to develop hotel properties
• Market segmentation

  1. Part 6, Corporate Responsibility
    https://media.wcl.american.edu/Mediasite/Play/6036676b02bf4daeb1d1f42028a533c81d

• Sustainability
• Employee satisfaction

  1. Part 7, Investor Presentation
    https://media.wcl.american.edu/Mediasite/Play/12c239a98be34f729331d1ab00416d531d

• Thesis & performance
• Pipeline

  1. Part 8, Conclusion
    https://media.wcl.american.edu/Mediasite/Play/e3721e643c6f44bea40f37ffeccefd571d

C. Hotel & Resort Operations.

Faculty: James LoBosco & Pascal Forotti
  1. Part 1, Introduction and Background
    https://media.wcl.american.edu/Mediasite/Play/3923ff3662444d9fb9c9c22dc223377b1d

• Hotel scenario

  1. Part 2, Roster in a Hotel
    https://media.wcl.american.edu/Mediasite/Play/6bafb265410a4398b86db6a4f543f7191d

• General manager and department managers
• Dir, Food and Beverage
• Executive Chef
• Sales and Marketing
• Rooms
• Finance, Controller
• Human Resources
• Revenue Management & Reservations
• Engineering & facilities

  1. Part 3, Regular Meetings for the General Manager & Asset Manager
    https://media.wcl.american.edu/Mediasite/Play/7e7ece0be4f243dd8c804e82b54c96db1d

• General manager and ownership (SVP or asset manager)
• GM and regional VP of the brand
• Ownership & the brand
• Monthly Meetings:
Profit & loss, forecasts and strategy, monthly performance vs. competition
• Yearly Meetings
Sales and marketing plan, budget, capital expenditures (Capex)
HR, union activities
PR and marketing, brand common promotions, social media support

  1. Part 4, Conclusion and a Look-Ahead for Post-Crisis Recovery
    https://media.wcl.american.edu/Mediasite/Play/5a73e552d3fa4091a585fd730d9097f21d

D. Economic Models.

Faculty: John Jacobsen & Carl Hurwitz

  1. Part 1, History of Hospitality in the U.S.
    https://media.wcl.american.edu/Mediasite/Play/7b98546a8f7d4d1cb1a89d3f650672a11d

• Inns & taverns, the innkeeper
• First hotels in the U.S.
• Motels and cabins
• Visionaries and the interstate highway systems
• Bill Marriott, Conrad Hilton, Kemmons Wilson, Cecil Day
• Standardized, clean, predictable, family-friendly, and readily accessible to road travelers

  1. Part 2, Essential Tasks of Developing & Operating a Hotel
    https://media.wcl.american.edu/Mediasite/Play/830155171fbc46de826db251287081f51d

• Tasks of developing, designing, and building a hotel
• Tasks of operating a hotel

  1. Part 3, Economic Models
    https://media.wcl.american.edu/Mediasite/Play/1d6e6c9986b84ff1ae277173485d83211d

• A is independent
• B is franchise owner-operated
• C is franchise, 3rd party managed
• D is brand managed

  1. Part 4, Additional Economic Models
    https://media.wcl.american.edu/Mediasite/Play/882cc13d38c34492a7997976afd2807f1d

• E is soft brand with historic property
• E is soft brand with boutique property
• F is independent hotel with 3rd party vendors (reservation systems, customer loyalty programs)

E. Live Session.

During the live session, students will be assigned to breakout rooms with faculty. This session will introduce the component parts of the hotel industry. We will build on these topics during the program and you will see where lawyers work in the process.

Each group will be assigned a team captain.

• Imagine an apartment building in D.C. (or any city) with 100 rooms, parking, and a vacant lot next to the building that is for sale. Your company likes the location of the building near the business district and city parks. Your company has purchased the building and your team has been assigned to convert the building into a hotel.
• What is the design of a hotel? What are the physical components of a hotel? Lobby, rooms, fitness center, gathering places, restaurants, bar. What ideas do you have for special touches with the guests (like a guided morning jog around the monuments)?
• Do you intend it to be a luxury property? What do you associate with a luxury hotel?
• Who are your target guests, where do they live, why are they coming to your hotel? How do you promote and market your hotel?
• How do you hire staff and operate the hotel? What are the key employees at the hotel (general manager and others)? Do you have the expertise to operate the hotel?
• How will guests make a reservation at your hotel?
• Will you have a rewards program for guests to attract them to return to your hotel? How would you create a system of incentives?
• How will you purchase the many items needed to operate a hotel, including televisions, mattresses, and coffee machines?
• If your hotel concept succeeds, would you want to sell the idea to others to use? If your hotel concept succeeds, would you want to open similar types of hotels? Can you attract investors to your hotel?
• Would you consider paying a monthly fee for an existing brand of hotel, with reservation systems and customer loyalty program?

Legal Issues in the Hotel Operations

F. Hotel Insurance & Risk Management.

Faculty: Lou Rizzo

  1. Part 1, Introduction
    https://media.wcl.american.edu/Mediasite/Play/eede87f7f1c048d185ac5398f35fc6ae1d

• Goals for the session
• Glossary of terms
• Practice groups in a medium-sized, regional law firm
• Managing a law firm in times of crisis

  1. Part 2, Basics of Insurance
    https://media.wcl.american.edu/Mediasite/Play/37afb1bffffa4a518ec8263db768fe0c1d

• Auto insurance
• Risks, premiums, coverages
• Glossary

  1. Part 3, Broad Look at Risks in a Hotel
    https://media.wcl.american.edu/Mediasite/Play/380b81c6bcf14280a37b4ee2c5509ce71d

• Property risks
• Risks of injury
• Range of risks

  1. Part 4, Insurance Policies for a Hotel
    https://media.wcl.american.edu/Mediasite/Play/9988e80078b84f12ac870c0b6b0aaef41d

• Property & casualty
• 1st party, 3rd party
• CyberSecurity coverage
• Professional liability insurance
• Builder’s risk
• Business interruption
• General liability
• Auto
• Property & casualty
• Cyber
• E&O, professional liability
• Umbrella
• View from the GM
• View from the brand

  1. Part 5, Additional Coverage & Additional Terms of Insurance
    https://media.wcl.american.edu/Mediasite/Play/7892b2300c544136a60fe0aaa16a3d441d

• Mold, virus

  1. Part 6, Business Interruption Insurance & Conclusion
    https://media.wcl.american.edu/Mediasite/Play/32d4c4052a584dd68604e2e254881f4c1d

• Response to business interruption claims
• Summary

G. DataSecurity & Privacy.

Faculty: Kirk Nahra

  1. Part 1, Introduction to the Topic
    https://media.wcl.american.edu/Mediasite/Play/6fc99d794aa94e438c061b41c32901a01d
  2. Part 2, Privacy and Data
    https://media.wcl.american.edu/Mediasite/Play/51b38305989e41a0905c88f3441550361d

• History
• Laws and practices about personal data is used, gathered, maintained, and disclosed
• Personal data
• How is privacy different for the hotel industry?
• Legal topics in compliance, litigation, mergers, product design, marketing, technology\
• Privacy as mostly statute and regulations (state, federal, intl), but not much case law

  1. Part 3, Security
    https://media.wcl.american.edu/Mediasite/Play/b7e58db6ac854f70a077d49447e4f3b71d

• Laws, regulations, and practices about how personal information is protected
• Breaches
• Cybersecurity
• Detailed obligation for vendors
• Fair Credit Reporting Act
• Website privacy policies
• Do Not Call List
• California Consumer Privacy Act
• EU rules and GDPR

  1. Part 4, Security Breaches & Notification
    https://media.wcl.american.edu/Mediasite/Play/9c6f7899f7c94eb4b4173ce2306a50731d

• BJ’s Wholesale Settlement
• Gramm-Leach-Bliley Security Standards
• Federal Trade Commission

  1. Part 5, Private Litigation
    https://media.wcl.american.edu/Mediasite/Play/d4fbbab261464955b518966b4a99783a1d

• Smith v. Chase Manhattan Bank
• Vendor issues
• Hotel issues

  1. Part 6, Impact of COVID
    https://media.wcl.american.edu/Mediasite/Play/b9b631a752914c24abf1792489d0f46d1d
  2. Assignment. You are the general counsel for a boutique hotel chain. They offer unparalleled luxury to their high-end guests. They are looking to relaunch their New York City and San Francisco hotels on July 1. Please provide an outline of how they should think about the legal issues associated with: (i) collecting and using information about the health status of employees; and (ii) collecting and using information about hotel guests. What laws are in apply? What issues should you be thinking about? What are the practical issues to think about?

H. Employment & Labor Law in Hospitality.

Faculty: Dave Sherwyn & Peter Fischer
Live online session scheduled for June 10

  1. Part 1, Introduction
  2. Part 2, Employee Discrimination

• Protected classes
• EEOC or state agency
• Civil Rights Act of 1964 (race sex, religion, color
• 1967 age
• Civil 1991, jury trials
• ADA 1991 & 1992
• Damage schemes, back pay, atty, punitive capped, reinstatement,
• EEOC
• Burden of proof, prima facie, mixed motive
• Specific classes (maybe include age discrimination)
• Sexual harassment, Supreme Court cases (orientation and transgender has the 2019 case been decided by June 10)
• Hostile environment, training, policies, correcting, reasonable care, employee reports, employers typically win if they do the right thing
• Retaliation (maybe)
• Whistleblower (probably not relevant)

  1. Part 3, Fair Labor Standards Act 1938

• Department of Labor or go directly to court
• Minimum wage
• Hours per week
• Overtime (1.5 x) (hard to calculate base pay)
• Exemptions from overtime ((i) min earnings at $635 per week & (ii) duties test as a salaried employee) (primary duty as executive function, supervising more than one person) (sous chef)
• Hours worked (when does the work start) (arrival a workplace or at their position)
• Wage & hour (“wage theft”)
• Federal & state laws
• Class action, procedural
• Nature of the fees & shifting
• Tip credit
• Breaks for workers
• Predictive scheduling laws
• Employees vs. independent workers

  1. Part 4, Hot Topics

• Joint employer
• Arbitration
• State & local laws, including Seattle law, Santa Monica law

  1. Part 5, Union Matters

• Introduction
• NLRB, apply, ALJ, board, then court
• Card check neutrality
• San Francisco, NYC
• COVID, workers, employees, changing the narrative
• Select service, non-branded
• Social media and twitter

  1. Part 6, COVID

• Is there employer liability?
• ADA (what is a disability?)
• Worker’s Comp (who is covered? Spouse of worker?)
• WARN Act, notice for layoffs
• OSHA (CDC)
• Current cases
• New laws, oversight, regulations, rules
• Families First Coronavirus Response Act (FFCRA), including Emergency Paid Sick Leave Act & Emergency Family and Medical Leave Expansion Act
• How do hotels reopen, housekeeping, check-in, f&b?
• Please don’t clean my room, please don’t touch my luggage
• Students who want careers in hotels
• Predicting the near future in travel
• HMA employee relationships

  1. Assignment.

I. Compliance & Anti-Corruption.

Faculty: Veronique Lanthier & Anthony Campanelli

  1. Part 1, Introduction
    https://media.wcl.american.edu/Mediasite/Play/e6e4a453ce6e4ad1b3675f244ffad9b61d
  2. Part 2, Foreign Corrupt Practices Act (FCPA)
    https://media.wcl.american.edu/Mediasite/Play/b78fcf258f2b43f7823a1948bb4401b51d

• Components of bribery
• Basics of the FCPA
• Compliance programs
• Background checks

  1. Part 3, Bad Actors
    https://media.wcl.american.edu/Mediasite/Play/4ce0c72b26e9466f9c7a9f644e6318861d

• Office of Foreign Assets Control (OFAC) (Department of the Treasury)
• Enforce economic and trade sanctions against targeted foreign countries
• Anti-Money Laundering
• Proceeds from a criminal activity
• Using hotels as a method to disguise and circulate the funds
• Price Fixing