Take part in design planning at the end and technical audits with the operations teams. The owner is required to manage the construction of the hotel project in accordance with established brand design and construction standards. The parties may agree within the TSA to further define the scope and degree of detail of these licensing rights. These definitions should include at least some objective design and design standards that can be evaluated by an external expert in the event of disagreement. Many brands have a design guide that can be referenced in the TSA to establish the items that define the essence of the brand. In the absence of a design guide, parties should ensure that the expectations of each party are protected when writing objective design and design standards. In Castillo Grand, the TSA referred to a multi-volume design guide outlining the standards to be met that, in the Tribunal`s view, never existed. The court found that it was not possible for the owner to build a hotel in accordance with a design guide that did not exist. In the absence of objective standards for measuring the quality of the owner`s claims, the Tribunal stated that the trademark verification of certain elements of the project was subjective and arbitrary, particularly if the previous authorizations had been subsequently cancelled.

In the absence of objective standards within the TSA, the court found that trademark approval required everything necessary to make the project`s interior architecture attractive to the decision makers of the brand`s executives. What complicates matters further is that the leaders and the design team have completely changed over the course of the project. With the „running meter“ on the construction loan, the owner began to rush the normal planning and construction process on an extreme „fast track“ called „cave construction.“ In this „process“ parts of the hotel were built by the training of subcontractors from sketches, notes and instructions from the interior designer instead of formal drawings. Mistakes, problems and compromises have led to escalating conflicts between the owner and the brand. A recent decision by the New York State Supreme Court regarding the design and construction of the St. Regis Hotel and Residences in Fort Lauderdale, Fla.

Kategorien: