Hotel Management and Operations

An ownership entity (note that this is different than and separate from the development company) must be created to hold title to the land—and the hotel, once it’s built. Considering the limitation of liability to the investors, tax consequences, estate implications for the investors, and potential requirements of the mortgage lender, a business structure is se- lected, normally in one of the following forms:

• Limited liability company (LLC)
• Limited partnership (LP)
• S corporation (formerly known as a  Sub-S corporation)
• C corporation