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VERY IMPORTANT NOTICE TO WOULD BE PIRATES (AND THE LIKE):

  • Please note we do not wish to have any dealings with Brokers, Sellers, Buyers, Investors, Operators, Suppliers, Consultants, Agents, etc., who DO NOT WISH TO SIGN NDAs, Supplement of NDA if required, LOIs, or do not produce an PFO when requested by the Seller. It is simple COMMON SENSE to follow GOOD BUSINESS PRACTISES to achieve a WIN-WIN Agreement for all.

  • Pirates’ examples we have had during the past year which we wish to avoid in the future:

  • 1. A Seller of a Hotel in Las Vegas firstly offered us 800 (eight hundred) millions US dollars for a Hotel-Casino. When we presented three interested parties, he changed to an auction style with prices from 900 to 1.100 millions US dollars.

    Please Note: If a Seller wants an auction style sale, s/he must say so from the very beginning; otherwise, we will not accept selling a property which does not offer a guarantee in the price given, for a minimum period between a fortnight and a month.

    2. A Buyer was offered a property at 41 millions Euros, whose real value was 110 millions Euros. That is to say with a discount of 62.73 %. The Buyer requested a further 40% discount on the 41 millions...

    Please Note: Our prices are not inflated, in a would be pirate way, to then be able to discount it.

    3. One of our Allied Members was offered by a Broker a trophy property in the Champ Elysées, Paris at 435 (four hundred and thirty five) millions Euros and when the buyer said yes, it resulted that the broker had played around hoping the owner of the property would accept that price and would sell. In other words, there was no Sales Mandate.

    Please Note: All Brokers are expected to commit to provide bona fide and real operations, possible and legally permitted, including the necessary information, truthful and complete, and to obtain from Sellers and Buyers/Investors the necessary written mandates to make the transaction possible, and to make them available to the other Parties in accordance with GHBA rulings and Code of Professional Ethics.

    4. A Broker wanted the following information BEFORE he signed the Confidentiality Agreement:

    City:

    County/Area:

    Country:

    Star Rating:

    Number of Rooms:

    Amenities:

    Square Footage:

    Parking:

     

    Sales:

    RevPar:

    NOI:

    Asking Price:

     

     

    Loan Balance:

    Assumable:

    Terms:

    Please Note: GHBA will only provide, in the first place, Basic Blind Information which will try to prevent, in any reasonable way, the circumvention of our Allied Members’ offers.

    When the Confidential Agreement has been signed, then and only then, will GHBA provide that sort of information.

    5. Another Broker who had signed the Confidential Agreement insisted that he has not given any information to the potential Buyer/Investor, and that he would not do so until he had signed the Confidential Agreement, a LOI and a POF. The Potential Buyer/Investor contacted directly the Seller.

    Please Note: GHBA Allied Brokers have the commitment not to pass any significant information/documentation to potential Buyers/Investors, until they have signed a LOI/Confidentiality/Non-Circumvention Agreement, as well as a POF, if it is requested by the Seller.

    6. A Broker did not want to supply the LOI as he did not want to disclose his buyer’s name. For that reason, we did provide him with a Supplement making him responsible for any wrong doing from the Buyer – Investor in respect of confidentiality and/or circumvention. He was not prepared to sign the Supplement either, giving all the possibilities for the Buyer – Investor to circumvent GHBA’s Brokers if we had continued with the transaction.

    Please Note: GHBA Allied Brokers must supply the LOI and the POF, if requested by the Seller. If they, for whatever reason, do not wish to supply the LOI, s/he must sign a Supplement of the NDA making her/him responsible for any wrong doing from the Buyer – Investor. Otherwise, there is no possibility to make a transaction through GHBA. POF must be produced, in any event, if it is so requested by the Seller.

  • These examples are not exhaustive but we do not wish to tire the reader with endless cases. Would be Pirates (and the like) know very well all the tricks they can use and so do we. So it is pointless for them to try to use them with us. It will be a waste of their time.

  • This does not mean that we are not going to make use of any legal situations such as off-shore companies, and any other one that could mean a legal reduction in any type of taxes, etc. In fact, within our network we have specialists of those legal possibilities worldwide.

  • We wish you a very successful relationship with our Global Hotel Brokers Alliance, created for the benefit of all Good Professionals and Honest Sellers, Buyers, Investors, Hotel Operators, Consultants and Suppliers.

Kind regards,

Eduardo Martínez
Chairman, GHBA


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