Hotel REIT

Hotel REITs

Hunton & Williams LLP is among the most experienced law firms with respect to REIT transactions, representing issuers, underwriters, sponsors and lenders in connection with structuring and financing publicly and privately owned REITs. We have a particular focus on hotel REITs, the formation and continuing operations of which require consideration of many complex tax, securities, partnership and corporate issues. Hunton & Williams pioneered the resurgence in the lodging industry's use of the REIT structure in the early 1990s and has served as counsel on substantially more hotel REIT transactions, including hotel REIT IPOs, than any other firm.

Hunton & Williams has extensive experience in taking companies public as REITs and in subsequent financing transactions. We have handled more than 140 REIT IPOs and Rule 144A equity offerings and more than 1,000 capital markets transactions involving more than 200 REITs and other real estate companies. We have served as counsel in 20 hotel company IPOs and Rule 144A equity transactions, including 14 as issuer's counsel, and numerous subsequent public and private debt and equity financings. In the course of those and other engagements, we have worked closely with the leading investment banking firms, accounting firms and other professionals active in the real estate finance industry. As a result, we are particularly well qualified to assist hospitality industry companies accessing the public capital markets as well as private capital sources. We have extensive experience with the unique tax and securities law issues facing hotel REITs and the SEC's disclosure and accounting requirements.

We have particular experience in advising hotel REIT clients on implementing the "taxable REIT subsidiary" or TRS, structure as permitted by the REIT Modernization Act which became effective January 1, 2001. The RMA gives hotel REITs increased flexibility in their operations. We have advised far more hotel REITs on the TRS structure than any other law firm.

The formation of a hotel REIT and a related IPO requires considerations of many complex tax, securities, partnership and corporate law issues. The preparation of a registration statement and other documents for a hotel REIT IPO can be extremely complex and time consuming. Experienced counsel with a broad working knowledge of REITs and the lodging industry brings value to the transaction by organizing and effecting the IPO transaction in an efficient and cost-effective manner, while minimizing disruption to the hotel company's normal business operations.

In addition to working with hotel REIT issuers, our lawyers have represented major investment banking firms in hotel industry financing transactions.

In addition to financing transactions, we have represented hotel REIT clients in hundreds of acquisition and disposition transactions and merger and acquisition transactions, including transactions with major hotel management companies.

We also regularly represent hotel REIT clients in private financings, structured debt financings, joint ventures and other strategic transactions.

Our lawyers speak and write frequently on topics of interest to the hotel REIT industry.