Hotel Liquor Licensing Issues in Hotel Transactions - What You Need to Know
21 May 2012
This newsletter discusses the major hotel liquor licensing issues in hotel transactions. In particular, it reinforces the importance of several key steps including detailed due diligence regarding a hotel's liquor licence, allowing sufficient time to deal with transferring matters (as conditions precedent), and building into the contract a mechanism to deal with licensing issues and the complexities of licensing regulation. Failure to do so can put at risk the transaction timeline or the transaction itself, and can result in greater exposure to a seller and buyer under the applicable legislation.