Llenrock Blog Features Commentary by Jan deRoos
In conjunction with his presentation to the Philadelphia Real Estate Council and prompted by the case of Marriott International v. Eden Roc, CREF Academic Director Jan deRoos provided an analysis of the case for the Llenrock blog. The Eden Roc case is important as it involves an owner’s ability to unilaterally terminate a hotel management contract with an operator, even though the manager is specifically not the owner’s agent. The case is subject to appeal. In addition, deRoos provided commentary on “captive operating platforms”, a structure in which a real estate ownership firm is affiliated with a hotel operator or brand manager, and on the status of independent hotels, which seem to thrive at both the low end of the industry spectrum and the very high end, notably in urban centers and destinations. Based in Philadelphia, Llenrock Group is a real estate advisory and investment banking firm that offers a full spectrum of services, including investment sales, direct investment, and structured finance, including real estate operations, acquisitions, and deal structuring. The video blog discussion extends to the status of independent hotels, which seem to thrive at both the low end of the industry spectrum and the very high end, notably in urban centers and destinations.