HSR requires that before parties close most significant (and some troublingly insignificant) mergers and acquisitions, they must provide information concerning the transaction and the parties to the transaction to the FTC and the Department of Justice, and pay a $45,000 fee. The parties must then wait 30 days or more, if requested by the government, before consummating the transaction. These requirements have become increasingly burdensome, as HSR covered more deals, and posed a barrier to many otherwise attractive transactions.

HSR Relief. On December 21, 2000, President Clinton signed into law long anticipated legislation which substantially eases burdens of HSR for many in the hotel industry - including relaxing the reporting requirements by increasing the reporting threshold, but increasing the filing fees and making them variable based on the size of the transaction. While the FTC is expected to issue rules that may further ease the burdens, the legislation itself creates a number of new and important guidelines which will be of significant impact on the purchase and sale of businesses, including hotel and hospitality businesses:
 

For additional information, contact Robert E. Braun, (310) 785-5331, or [email protected].

The Global Hospitality Group(r) is a registered servicemark of Jeffer, Mangels, Butler & Marmaro LLP