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Hotels Provide Sanctuary on the Front Lines; Saving Grace in the Time of Crisis

The COVID-19 pandemic has emptied hotels.

Occupancy rates have plummeted.  Owners and operators are laying off staff and closing hotels.

But in the midst of a crisis, need and opportunity meet.  Cities across the country, desperate for beds to house first responders, trained medical personnel, or infected patients that just need a place to self-isolate, are turning to these same hotels for accommodation.  The hotel industry is responding and providing sanctuary in the time of crisis.

But these are no ordinary times and these are no ordinary agreements.   The following includes some of the key issues for hotel owners and operators to consider before opening their doors as sanctuary housing.

Click for pdf: Issues for Hotel Owners and Operators To Consider Before Opening Their Doors As Sanctuary Housing

As you are aware, things are changing quickly and there is no clear-cut authority or bright line rules in this area. This Blog does not reflect an unequivocal statement of the law, but instead represents our best interpretation of where thing currently stand. This Blog does not address the potential impacts of the numerous other local, state and federal orders that have been issued in response to the Covid-19 pandemic, including, without limitation, potential liability should an employee become ill, requirements regarding family leave, sick pay and other issues.

 Coronavirus, CARES Act

Copyright © 2020, Sheppard Mullin Richter & Hampton LLP.

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About this Author

Lawrence C. Eppley Corporate Real Estate Lawyer Sheppard Mullin Law Firm
Partner

Lawrence Eppley is a partner in the Corporate Practice Group and Office Managing Partner of the firm's Chicago office. He is also Leader of the firm's Hospitality Team.

Areas of Practice

Lawrence concentrates his practice on acquisitions, real estate finance, development, public and private finance, joint ventures and raising equity, particularly in the hospitality sector.

Previously, Lawrence was general counsel at Potbelly Sandwich Works, one of Chicago's fastest growing...

312.499.6302
Lauren Mioduszewski Real Estate Lawyer Sheppard Mullin Chicago
Associate

Lauren Mioduszewski is an associate in the Real Estate, Land Use and Environmental Practice Group in the firm's Chicago office.

Areas of Practice

Lauren concentrates her practice on commercial and residential real estate development throughout the U.S., including construction and design contracts; lending and finance; and sales and acquisitions. Lauren also assists both private and public companies in corporate transactional matters.

312.499.6354
Jeffrey S. Gardner, Sheppard Mullin, Chicago, Capital Investments Lawyer, Finance Industry attorney
Associate

Jeffrey Gardner is an associate in the Corporate Practice Group in the firm's Chicago office.

Jeffrey Gardner concentrates his practice on transactional and securities matters, including mergers, acquisitions, divestitures, joint ventures, private equity and venture capital investments, financings, and Securities Act of 1933 and Securities Exchange Act of 1934 compliance. Mr. Gardner has represented public and private clients in many different industries, including basic materials, biotech, finance, hospitality, and technology. He also advises...

312.499.6311
Michael J. Roth, Real Estate, Land Use Attorney, Sheppard Mullin
Associate

Michael Roth is an associate in the Real Estate, Land Use and Environmental Practice Group in the firm's Chicago office.

Areas of Practice

Michael J. Roth concentrates his practice on commercial and residential real estate development throughout the United States, including construction and design contracts, lending and finance, and sales and acquisitions.

He has significant experience representing owners and contractors in negotiating design and construction contracts and has represented...

312-499-6312