On a hotel financing, arrangements with the hotel manager and/or franchisor will be fundamental. A hotel’s brand is an inherent part of its value and any lender will be keen to ensure continuity of that brand during the life of the loan, as well as continuity of operations. As such, in advance of lending, the lender will typically want to sign a direct agreement or non-disturbance agreement with the hotel franchisor and/or hotel manager, in which certain arrangements are agreed.
