15 October 2009
The downturn in the global economy sparked by the credit crunch has had a significant effect on the hospitality and leisure industry both in terms of operations and development. According to recent data hotel occupancy and revenues in the Asia Pacific region dropped in the month of July 2009. A number of hotel projects are currently on hold as developers struggle to come up with the financing required. However, Asia is showing slight signs of improvement.
In our Update, we review the current economic difficulties, the continuing demand for hotel development and their impact upon the negotiation of hotel management agreements, in particular as to non-disturbance agreements, returns on investment and the use of structures of alternative to HMAs.
Get the full update.
For inquiries related to this Client Update, please contact:
Andrew MacGeoch (
David Mallinson (
Learn more about our Hong Kong office and Hospitality & Leisure practice.