Litigation Support - Strategy - Market & Economic Analysis - Organization - - Growth & Development -
LITIGATION SUPPORT
Roundhill Hospitality provides litigation support (both arbitration and expert testimony) on a variety of matters within the context of the hospitality industry including: operational matters, owner / operator relationships, management and franchise agreement issues, franchising, market analysis and valuation.
Read below for excerpts from the article, Alternative Dispute Resolution in Hospitality, written by Roger S. Cline. To read the complete article, click here and download the printable pdf file.
ALTERNATIVE DISPUTE RESOLUTION IN HOSPITALITY
by Roger S. Cline
Introduction
Because of the significant and rising costs involved in civil litigation, many business organizations are turning increasingly to Alternative Dispute Resolution (“ADR”) as the preferred way of settling conflicts that arise either from contractual agreements or in operations. ADR has become popular because of its focus on fair and reasonable outcomes that are arrived at expeditiously, at less cost than through litigation and in a more cordial, less confrontational atmosphere. Best practice legal departments in well-managed business organizations understand the economic and non-economic benefits of effective conflict management through ADR. And while hospitality may have been slower to embrace the concept than other industries, it is surely now time to bring this important process to bear on the growing burden of litigation on the industry.
Effective risk management calls for the resolution of issues before they become full-fledged disputes. An ADR plan that provides for issue review, mediation and arbitration brings not only financial and economic benefits but also intangible ones including the preservation and improvement of important business relationships.
In order to benefit from an ADR plan, organizations need to agree upon the forum, the procedures to be used and the so-called “providers” who will administer the process before entering into contracts. But even if such a plan is not memorialized in a contract, this should not prevent parties to a relationship from agreeing to a defined ADR process in order to resolve a dispute.
Alternative approaches to ADR may be viewed from the perspective of the increasing use of time and commitment to the outcome, from the preemptive (Issue Review Boards, to the facilitated (mediation) and on to the final and binding (arbitration). There are thus three principal approaches to ADR:
1) The Issue Review Board – (an informal forum that recommends non-binding solutions to issues before they become disputes)
2) Mediation – (a facilitative or evaluative process to resolve disputes with agreement reached by the parties and enforceable through arbitration or litigation)
3) Arbitration – (the final, binding and enforceable resolution of disputes, although occasionally arbitration may be defined as non-binding, with the prior agreement of the parties)
With the increasing popularity of ADR in all areas of business, it was inevitable that the hospitality industry would take note of its advantages. With the escalating costs associated with litigation, organizations involved in the hospitality sector are increasingly recognizing that disputes that arise between parties may be reasonably, fairly and economically resolved through ADR. Hotel management and franchise agreements for example, have frequently included arbitration and mediation provisions but they generally have referred to standard rules and used third-party providers with little background in the industry.
Arbitrators and mediators have thus been brought into hospitality dispute resolution with little understanding of the history and dynamics of the sector. And while neutrality has generally been assured, there has been frustration associated with the frequent lack of understanding of the issues involved on the part of the key players in the process – the arbitrators and mediators.
Currently, Roundhill Hospitality’s preferred vendor relationship for the provision of support services in ADR is the Institute of Conflict Management (ICM). We are, however, prepared to serve with other major providers in the ADR field where the circumstances dictate or are appropriate, including organizations such as the American Arbitration Association (AAA), JAMS and the International Chamber of Commerce. Some existing contractual agreements within the hospitality industry for example, provide for the application of AAA or JAMS rules under which we would serve.
Neutrality and Experience
The clear advantage of using our ADR services is to bring not only neutrality and independence to the process, but to ensure that industry experience and understanding is applied when reviewing facts, analysis and testimony and in arriving at findings and conclusions, solutions and awards. We abide by strict professional standards of independence that have been well established and recognized by the hospitality industry for many years. It is thus independence, industry knowledge and professional expertise that is brought to the ADR process and makes a Roundhill solution to ADR more desirable than any other.
Arbitration in Hospitality
Arbitration is a well-established form of dispute resolution that provides the parties with a final and legally binding decision. The decision is enforceable by a court of law typically after only a very limited review and may not be appealed except under very limited circumstances. Occasionally, the parties may agree to a non-binding arbitration but this is the exception rather than the rule.
To read more about this topic, click here and download the entire article.
Mediation in Hospitality
Like arbitration, mediation is conducted in private but involves a neutral who assists the parties to a dispute in reaching their own settlement. While mediation is mostly a voluntary process, it can be mandated by a court of law or provided for in a written contract between the parties. It is a relatively straightforward process where the parties may represent themselves or use advocates. In a mediation, the dispute may involve two or more parties. The neutral may either facilitate the process of the parties reaching their agreement or be called upon to evaluate the argument and evidence and advise on a resolution.
To read more about this topic, click here and download the entire article.
Issue Review Boards (IRB) in Hospitality
An Issue Review Board is ideally suited to those on-going business relationships where there is a need to quickly resolve issues before they become disputes. Used historically in the construction industry where time-sensitive projects must move forward promptly and where delays for dispute resolution can have significant economic impacts, the IRB also has application in operational environments. Within the hospitality industry, IRBs may be used for example not only for development projects but also with owner/operator issues that might arise out of a management agreement.
To read more about this topic, click here and download the entire article.
Cornell University’s Survey on the use of ADR
In a comprehensive study of the use of ADR in American industry, Lipsky and Seeber surveyed the corporate counsel of the 1000 largest U.S. Corporations and found that the vast majority of corporations had used one or more ADR procedures in recent years. A total of 88 percent of the 606 respondents had used mediation and 79 percent, arbitration. Most respondents furthermore indicated that the use of ADR would grow significantly in the future. Over 84 percent said they are likely or very likely to use mediation in the future, while 69 percent said the same about their future use of arbitration.
To read more about this topic, click here and download the entire article.
What’s Your ADR?
For many in the hospitality industry, ADR has been all about revenue. But these three letters clearly have more to offer the business than income. Alternative Dispute Resolution can in fact save a great deal of money. It will not always produce the desired outcome for one party or the other but it will frequently provide the opportunity to preserve the relationship and will generally produce a fair and reasonable outcome. For those with an involvement in the hospitality industry, qualified and experienced arbitrators and mediators can help resolve disputes, save money and preserve relationships – not a bad line-up for those who thought ADR could only mean average daily rate!
To read more about this topic, click here and download the entire article.
To learn more about Roger S. Cline, click here to read his full biography. For more information about Roundhill Hospitality's Litigation Support Practice, please contact us.
Read below for excerpts from the article, Alternative Dispute Resolution in Hospitality, written by Roger S. Cline. To read the complete article, click here and download the printable pdf file.
ALTERNATIVE DISPUTE RESOLUTION IN HOSPITALITY
by Roger S. Cline
Introduction
Because of the significant and rising costs involved in civil litigation, many business organizations are turning increasingly to Alternative Dispute Resolution (“ADR”) as the preferred way of settling conflicts that arise either from contractual agreements or in operations. ADR has become popular because of its focus on fair and reasonable outcomes that are arrived at expeditiously, at less cost than through litigation and in a more cordial, less confrontational atmosphere. Best practice legal departments in well-managed business organizations understand the economic and non-economic benefits of effective conflict management through ADR. And while hospitality may have been slower to embrace the concept than other industries, it is surely now time to bring this important process to bear on the growing burden of litigation on the industry.
Effective risk management calls for the resolution of issues before they become full-fledged disputes. An ADR plan that provides for issue review, mediation and arbitration brings not only financial and economic benefits but also intangible ones including the preservation and improvement of important business relationships.
In order to benefit from an ADR plan, organizations need to agree upon the forum, the procedures to be used and the so-called “providers” who will administer the process before entering into contracts. But even if such a plan is not memorialized in a contract, this should not prevent parties to a relationship from agreeing to a defined ADR process in order to resolve a dispute.
Alternative approaches to ADR may be viewed from the perspective of the increasing use of time and commitment to the outcome, from the preemptive (Issue Review Boards, to the facilitated (mediation) and on to the final and binding (arbitration). There are thus three principal approaches to ADR:
1) The Issue Review Board – (an informal forum that recommends non-binding solutions to issues before they become disputes)
2) Mediation – (a facilitative or evaluative process to resolve disputes with agreement reached by the parties and enforceable through arbitration or litigation)
3) Arbitration – (the final, binding and enforceable resolution of disputes, although occasionally arbitration may be defined as non-binding, with the prior agreement of the parties)
With the increasing popularity of ADR in all areas of business, it was inevitable that the hospitality industry would take note of its advantages. With the escalating costs associated with litigation, organizations involved in the hospitality sector are increasingly recognizing that disputes that arise between parties may be reasonably, fairly and economically resolved through ADR. Hotel management and franchise agreements for example, have frequently included arbitration and mediation provisions but they generally have referred to standard rules and used third-party providers with little background in the industry.
Arbitrators and mediators have thus been brought into hospitality dispute resolution with little understanding of the history and dynamics of the sector. And while neutrality has generally been assured, there has been frustration associated with the frequent lack of understanding of the issues involved on the part of the key players in the process – the arbitrators and mediators.
Currently, Roundhill Hospitality’s preferred vendor relationship for the provision of support services in ADR is the Institute of Conflict Management (ICM). We are, however, prepared to serve with other major providers in the ADR field where the circumstances dictate or are appropriate, including organizations such as the American Arbitration Association (AAA), JAMS and the International Chamber of Commerce. Some existing contractual agreements within the hospitality industry for example, provide for the application of AAA or JAMS rules under which we would serve.
Neutrality and Experience
The clear advantage of using our ADR services is to bring not only neutrality and independence to the process, but to ensure that industry experience and understanding is applied when reviewing facts, analysis and testimony and in arriving at findings and conclusions, solutions and awards. We abide by strict professional standards of independence that have been well established and recognized by the hospitality industry for many years. It is thus independence, industry knowledge and professional expertise that is brought to the ADR process and makes a Roundhill solution to ADR more desirable than any other.
Arbitration in Hospitality
Arbitration is a well-established form of dispute resolution that provides the parties with a final and legally binding decision. The decision is enforceable by a court of law typically after only a very limited review and may not be appealed except under very limited circumstances. Occasionally, the parties may agree to a non-binding arbitration but this is the exception rather than the rule.
To read more about this topic, click here and download the entire article.
Mediation in Hospitality
Like arbitration, mediation is conducted in private but involves a neutral who assists the parties to a dispute in reaching their own settlement. While mediation is mostly a voluntary process, it can be mandated by a court of law or provided for in a written contract between the parties. It is a relatively straightforward process where the parties may represent themselves or use advocates. In a mediation, the dispute may involve two or more parties. The neutral may either facilitate the process of the parties reaching their agreement or be called upon to evaluate the argument and evidence and advise on a resolution.
To read more about this topic, click here and download the entire article.
Issue Review Boards (IRB) in Hospitality
An Issue Review Board is ideally suited to those on-going business relationships where there is a need to quickly resolve issues before they become disputes. Used historically in the construction industry where time-sensitive projects must move forward promptly and where delays for dispute resolution can have significant economic impacts, the IRB also has application in operational environments. Within the hospitality industry, IRBs may be used for example not only for development projects but also with owner/operator issues that might arise out of a management agreement.
To read more about this topic, click here and download the entire article.
Cornell University’s Survey on the use of ADR
In a comprehensive study of the use of ADR in American industry, Lipsky and Seeber surveyed the corporate counsel of the 1000 largest U.S. Corporations and found that the vast majority of corporations had used one or more ADR procedures in recent years. A total of 88 percent of the 606 respondents had used mediation and 79 percent, arbitration. Most respondents furthermore indicated that the use of ADR would grow significantly in the future. Over 84 percent said they are likely or very likely to use mediation in the future, while 69 percent said the same about their future use of arbitration.
To read more about this topic, click here and download the entire article.
What’s Your ADR?
For many in the hospitality industry, ADR has been all about revenue. But these three letters clearly have more to offer the business than income. Alternative Dispute Resolution can in fact save a great deal of money. It will not always produce the desired outcome for one party or the other but it will frequently provide the opportunity to preserve the relationship and will generally produce a fair and reasonable outcome. For those with an involvement in the hospitality industry, qualified and experienced arbitrators and mediators can help resolve disputes, save money and preserve relationships – not a bad line-up for those who thought ADR could only mean average daily rate!
To read more about this topic, click here and download the entire article.
To learn more about Roger S. Cline, click here to read his full biography. For more information about Roundhill Hospitality's Litigation Support Practice, please contact us.
STRATEGY
Roundhill Hospitality provides a variety of services concerning strategy ranging from the facilitation of a strategic planning session to the development of a comprehensive strategic plan. The firm draws upon its experience in strategy work undertaken for numerous organizations in the sector and builds on a foundation of original market research including the groundbreaking global research study: Hospitality 2000: A View of the New Millennium, data gathering, opinion surveys, analysis, evaluation and consensus building.
In the planning process, Roundhill Hospitality encourages strategic thinking – the combining of hard data with soft information such as personal and collective experience and intuition. The intent is to clarify the mission, vision and values, identify the sources of competitive advantage and articulate the strategic objectives and supporting actions. The strategy then becomes the basis for organizational adjustment as appropriate and an operating plan and capital budget. Our philosophy is to focus the strategic plan on the issues not the numbers.
For more information about Roundhill Hospitality's Strategy Practice, please contact us.
In the planning process, Roundhill Hospitality encourages strategic thinking – the combining of hard data with soft information such as personal and collective experience and intuition. The intent is to clarify the mission, vision and values, identify the sources of competitive advantage and articulate the strategic objectives and supporting actions. The strategy then becomes the basis for organizational adjustment as appropriate and an operating plan and capital budget. Our philosophy is to focus the strategic plan on the issues not the numbers.
For more information about Roundhill Hospitality's Strategy Practice, please contact us.
MARKET AND ECONOMIC ANALYSIS
Roundhill Hospitality conducts market and economic analysis within the hospitality and leisure sectors in a variety of contexts. From market studies for new product development or the acquisition of existing property to due diligence work on portfolios of hotel property; from financial modeling and forecasting to valuation of property and purchase price allocations.
Economic models are built using classical approaches to hotel property analysis and valuation and benchmark analysis is used to provide the foundation for much of this work. In addition to maintaining an extensive library of benchmark data, Roundhill Hospitality maintains alliances with most of the relevant sources of industry information. Such information includes market trends data, operating statistics, financial performance, and property transactional data, all of which are integrated into our work.
Market research studies are also conducted for new product and service investigations and for brand positioning evaluations.
For more information about Roundhill Hospitality's Market and Economic Analysis Practice, please contact us.
Economic models are built using classical approaches to hotel property analysis and valuation and benchmark analysis is used to provide the foundation for much of this work. In addition to maintaining an extensive library of benchmark data, Roundhill Hospitality maintains alliances with most of the relevant sources of industry information. Such information includes market trends data, operating statistics, financial performance, and property transactional data, all of which are integrated into our work.
Market research studies are also conducted for new product and service investigations and for brand positioning evaluations.
For more information about Roundhill Hospitality's Market and Economic Analysis Practice, please contact us.
ORGANIZATION
Heading the list of challenges in the hospitality industry for most executives is human capital – running the gamut from recruitment, training and development to motivation, retention and compensation. Hospitality is a people-intensive business – not only lots of customers to worry about serving well but also multitudes of employees or, as they frequently say in the trade these days, associates.
As the "Hospitality 2000: The People" survey on people in the industry found, one of the problems is that hospitality enterprises tend to view human capital management from an administrative rather than a strategic point of view. While human capital strategy should be high on everyone's agenda, it is especially important in the hospitality industry that is beset with high levels of turnover, low levels of motivation, challenges with training and development, and disadvantages relative to other industries in terms of image, reputation and pay scales.
High turnover of people is extremely expensive. As with customers, it is a great deal more productive to invest in the retention of existing employees than to recruit and develop new ones. Root course analysis deployed in areas of the company with high levels of turnover needs to identify factors that are both controllable and intractable, with solutions developed to mitigate the factors that can be controlled.
The hospitality industry also needs to learn from both its own industry leaders and from best–practice companies in other sectors. One theory in hospitality management is that a clear relationship exists between employee and customer satisfaction, which in turn drives profitability. While it's a simple theory, it is not widely adopted. Hospitality managers don't always measure employee satisfaction adequately enough to foster and manage this virtuous sequence. For some companies, the presence of a particular culture can also either hinder or help progress. In mergers, for example, conflicting cultures are frequently the principal causes of failure of companies to deliver on the promises of organizational synergy.
In syncing up the organization to whatever the strategy is, there are a number of issues related to human capital that frequently require addressing. Roundhill Hospitality's organizational work is oriented to responding to these including: how can human capital be managed more strategically? does the organization's human capital strategy, organization and culture foster the development and retention of the best people? how should executive talent be developed? is the compensation program designed to attract and retain the best and the brightest? how to mitigate the high costs of employee turnover? how to encourage employee loyalty? how to adequately measure employee satisfaction? is the culture supporting or hindering growth? how might the culture be changed, if necessary?
In addition to the above issues relating to human capital, Roundhill Hospitality provides organizational design services and organizational benchmarking against best practices.
For more information about Roundhill Hospitality's Organization Practice, please contact us.
As the "Hospitality 2000: The People" survey on people in the industry found, one of the problems is that hospitality enterprises tend to view human capital management from an administrative rather than a strategic point of view. While human capital strategy should be high on everyone's agenda, it is especially important in the hospitality industry that is beset with high levels of turnover, low levels of motivation, challenges with training and development, and disadvantages relative to other industries in terms of image, reputation and pay scales.
High turnover of people is extremely expensive. As with customers, it is a great deal more productive to invest in the retention of existing employees than to recruit and develop new ones. Root course analysis deployed in areas of the company with high levels of turnover needs to identify factors that are both controllable and intractable, with solutions developed to mitigate the factors that can be controlled.
The hospitality industry also needs to learn from both its own industry leaders and from best–practice companies in other sectors. One theory in hospitality management is that a clear relationship exists between employee and customer satisfaction, which in turn drives profitability. While it's a simple theory, it is not widely adopted. Hospitality managers don't always measure employee satisfaction adequately enough to foster and manage this virtuous sequence. For some companies, the presence of a particular culture can also either hinder or help progress. In mergers, for example, conflicting cultures are frequently the principal causes of failure of companies to deliver on the promises of organizational synergy.
In syncing up the organization to whatever the strategy is, there are a number of issues related to human capital that frequently require addressing. Roundhill Hospitality's organizational work is oriented to responding to these including: how can human capital be managed more strategically? does the organization's human capital strategy, organization and culture foster the development and retention of the best people? how should executive talent be developed? is the compensation program designed to attract and retain the best and the brightest? how to mitigate the high costs of employee turnover? how to encourage employee loyalty? how to adequately measure employee satisfaction? is the culture supporting or hindering growth? how might the culture be changed, if necessary?
In addition to the above issues relating to human capital, Roundhill Hospitality provides organizational design services and organizational benchmarking against best practices.
For more information about Roundhill Hospitality's Organization Practice, please contact us.
GROWTH AND DEVELOPMENT
Roundhill Hospitality provides a variety of services relative to growth and development. They range from the development of a growth strategy and the design of an organization to support it, to review of development, management contract, joint venture and franchising programs.
Roundhill Hospitality also provides advisory services in the identification of new growth opportunities such as property or corporate acquisitions, the preparation of due diligence materials, the negotiation and structuring of specific transactions to assistance with closings.
For more information about Roundhill Hospitality's Growth and Development Practice, please contact us.
Roundhill Hospitality also provides advisory services in the identification of new growth opportunities such as property or corporate acquisitions, the preparation of due diligence materials, the negotiation and structuring of specific transactions to assistance with closings.
For more information about Roundhill Hospitality's Growth and Development Practice, please contact us.