Greenspoon Marder Client Alert: Hotel/Hostel Industry Updates

Hospitality, Alcohol & Leisure Blog Jun 25, 2019

Date: This alert is based on information available as of June 20, 2019.

Subject: Enterprises licensed as a hotel by the Division of Hotels and Restaurants (H&R) and the Division of Alcoholic Beverages and Tobacco (ABT) which operate as or have a component that operates as a hostel.

Scope: Regulatory classifications and operational considerations for both H&R and ABT when hostel services are rendered.

Applicable Laws/rules: §§ 509.013, 561.20(2)(a), Rule 61A-3.043

Summary: Recently the Division of Hotels and Restaurants (H&R) refused to license an establishment as a hotel based on the location holding itself out and in some ways operating as a hostel. The inability to obtain a hotel license from H&R results in the inability to obtain an alcoholic beverage hotel license which authorizes the sale of liquor for consumption on the premises in addition to package sales without having to purchase a full liquor license on the open market.

Steps which can be taken to lower the risk of regulatory pushback include:

Using hotel in the DBA and excluding using hostel.
Offering individual rooms for rent.
Clarifying that group rooms can be rented individually for a specific rate if booked far enough in advance.
Offering services such as maid service, access to phones and a lobby area with an on duty employee.
Providing consistent hotel advertising both on site and online.
When possible offer to have unoccupied individual single or double rooms inspected by H&R as opposed to multi bed units.

In the event this issue arises in the application or inspection process please notify us immediately.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 225 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has maintained a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

MEDIA CONTACT

Natalie Villanueva, Director of Marketing
954.333.4308 | [email protected]

This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

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