Check-In - March 2025
Written By
Of Counsel
UK
I am a member of the Real Estate Group at Bird & Bird. I have many years' experience in real estate transactions and I also lead Bird & Bird's international Hotels, Hospitality and Leisure team, specialising in the acquisition, development and disposal of all types of hotels, from budget to luxury and in the negotiation of hotel management agreements.
Helping you stay up to date with the latest news, trends and hot topics in the international Hotels, Hospitality & Leisure sector.
We are delighted to share the March 2025 edition of Check-In, Bird & Bird's newsletter for hotel, hospitality & leisure businesses.
This edition shines a spotlight on the trend of hotel and fashion brand collaborations. It also provides a case law update involving the drafting of expert resolution clauses; a feature on the EU’s new “ViDA” VAT regime - and our regular “Employment Corner” feature, this time focusing on Germany.
On 19 March we co-hosted our 23rd webinar with HVS, AlixPartners and EP Business in Hospitality on the topic of 'Valuation Trends in the European Hotel Market'. We have included a link to the slides and a recording of the webinar below.
Please get in touch if you would like to discuss any of the matters covered by these articles, or visit our webpage for more information about Bird & Bird's Hotels, Hospitality & Leisure team.
Advertising, Marketing & Consumer Law
Hotels x Fashion – the Ultimate Collaboration
Luxury hotels are partnering with fashion brands to offer unique, exclusive experiences. Notable collaborations include Ritz Paris x Frame, One&Only Aesthesis x Balmain, and Hotel Du Cap-Eden Roc x Lacoste. These partnerships enhance brand visibility and consumer engagement, creating memorable stays for guests.
Authors: Evie Scott & Debra Goldwyn
Proposed New Rules in Italy to Combat False Reviews of Hotels and Restaurants
Italy is introducing new rules to combat false reviews in the hospitality sector. The draft law aims to ensure reviews are genuine by verifying users' identities and actual use of services. It also prohibits the sale of reviews and mandates transparency. These measures seek to protect consumers and enhance trust in online reviews.
Authors: Sara Massalongo & Rita Tardiolo
Case Law Update
Challenging Expert Decisions in WH Holding Ltd v E20 Stadium LLP
The UK High Court case WH Holding Ltd v E20 Stadium LLP highlights the importance of carefully drafting Expert resolution clauses in contracts. The decision underscores the need for clear definitions and procedures, especially regarding the circumstances under which an Expert's decision can be challenged. This case has significant implications for hotel management agreements.
Authors: Rachel Howell & Victoria Hobbs
Employment Corner
Managing Dismissals and Restructurings in the German Hotel Industry
The German hotel industry faces significant challenges with employee dismissals and restructurings, especially during business transfers. Key considerations include ensuring the validity of employment contracts, justifying operational redundancies, and navigating legal protections for employees. Employers must carefully manage these processes to avoid legal pitfalls and ensure smooth transitions.
Author: Benjamin Karcher
VAT
VAT in the Digital Age (“ViDA”): Prepare your Hotel, Hospitality and Leisure Business
The EU's VAT in the Digital Age (“ViDA”) initiative introduces significant changes to VAT rules, impacting online platforms facilitating short-term accommodation rentals. These reforms aim to modernise the VAT system, enhance compliance, and address revenue loss. Hotel, hospitality, and leisure businesses must prepare for these changes to remain compliant and competitive.
Author: Andy van Esdonk
Tax
How Tourism Taxes are Shaping the Hotel Industry
Tourism taxes are being implemented globally to manage overtourism and its impact on local resources. These taxes vary by region and aim to increase government revenue while controlling tourist numbers. The article discusses the effectiveness of these taxes, their impact on consumer behavior, and how hotel businesses can adapt to remain compliant and competitive.
Authors: Charlotte Getz & Matthew Vance
Reinstatement of Alcohol Sales Tax in Dubai in 2025
Dubai has reinstated a 30% tax on alcohol sales starting January 2025, after a two-year suspension. This move aims to increase government revenue but may lead to higher prices for consumers and increased competition among hospitality venues. Businesses are responding with price locks and promotions to attract customers.
Authors: Eddie Chiu & Alex Agababian
News & Events
Next Generation of Hotel Leaders: Bird & Bird Panel Discussion
We hosted a panel discussion alongside Cushman & Wakefield, with future hotel leaders exploring trends and challenges in the hotel industry. Topics included consumer demand for unique experiences, cost management strategies, and the impact of AI and new regulations. The discussion highlighted innovative approaches and insights from industry experts.
Authors: Thomas Stofer & Yasmine Barakat
Webinar Recording & Slides: Valuation Trends in the European Hotel Market
On Wednesday 19 March 2025 we presented our 23rd webinar with our friends at HVS, AlixPartners and EP Business in Hospitality. Our topic for this webinar focused on Valuation Trends in the European Hotel Market. We started with a presentation from Sophie Perret (Managing Director, HVS) on the latest trends in European hotel valuations with data and insight drawn from HVS’s latest annual European Hotel Valuation Index report.
Sophie then joined a panel of industry experts to provide perspectives from the point of view of investors, brands, lenders and advisors, which was moderated by Karen Friebe, Head of Bird & Bird's international Hotels, Hospitality and Leisure team. Our panel comprised of: Kash Gohil, Founding Partner - Amante Capital, Bettina Graef-Parker - Managing Director - Aareal Bank, David Kellett, Managing Director - Invesco, Graeme Smith, Managing Director - AlixPartners, and Paul Thomas, Vice President, International Development - Marriott International.
