Hotel Purchasing Due Diligence

Hotel Due Diligence Indonesia is a country full of tourist attractions and tourist destination sites. From beautiful white sand beaches and crystal clear waters of Kuta, Bali and Kuta Lombok to luscious and grand mountains and forests in Bedugul and Moyo Island, you can experience it all when you visit part of Indonesia. Whenever you visit a country one of the requisites is the hotel where you will stay. ‍ There are a lot of gorgeous hotels in Bali since it is one of the tourist hotspots in Southeast Asia. And because of the constant entry of tourists in Bali many foreigners are considering building their business in Bali, and some consider taking over existing businesses in Bali. ‍ One of the types of businesses that foreigners are taking over in Bali is the hotel industry. Hotels in Bali and Lombok are being taken over and brought by foreign investors. However, there are certain risks when purchasing preexisting hotels or any other businesses. To avoid such risks, you have to run a Due Diligence regarding the business you are interested in, with Juslaws & Consult, we offer Hotel Due Diligence, Corporate Due Diligence. Factory Due Diligence, Property, and Real Estate Due Diligence, etc.

Purpose Of Hotel Due Diligence Hotel Acquisition is a major business transaction, therefore, a Hotel Due Diligence came to life in order to safeguard the interest of the buyer or the one who will take over the business. Hotel Due Diligence focuses both on the physical nature of the hotel and the hotel assets and liabilities. ‍ During a Hotel Due Diligence, the buyer must be able to understand the hotel’s structure and environment, the buyer must also be introduced to the hotel’s market and viability of the business itself. And, before finalizing or engaging with the seller of the hotel, it is also important to raise awareness for the buyer regarding the legality of the transaction and the background of the hotel and its owners. ‍ Hotel Due Diligence usually tackles and checks any liabilities of the current shareholders and owners of the Hotel. Furthermore, the process also checks any possible liabilities that may be bequeathed to the potential buyer.

Benefits Of Hotel Due Diligence Juslaws & Consults’ Hotel Due Diligence service involves highly-specialized specific tasks to our team which make sure that no stones will be left unturned when investigating and checking about the hotel. We check everything from the history of the hotel to its construction and the ownership history. ‍ It will be very important to the Buyer since it will be the determining factor whether he should proceed with the intended transaction or not. We always weigh the possibilities of certain liabilities which may affect the buyer in the future and we present our hotel due diligence report with details regarding the risks, the full legal information, and details of the hotel, and the current owners and staff.

Essentials Of Hotel Due Diligence There is currently no stipulated checklist for Due diligence in Indonesia under the Indonesian law, however, for Juslaws & Consult we have our essentials as how we call it when we do our Hotel Due Diligence process, below are the following essentials by Juslaws & Consult:

• Legal Issues and Legality Check - Our Hotel Due Diligence service includes going to the court and checking whether there are current or previous cases related to the hotel or its owners/shareholders or even management employees. We make sure that all court case records of the hotel and its employees will be checked if there are any.

• Operational and Technical Inspection of the Hotel - Part of our Hotel Due Diligence service is going to the hotel site and checking their operational component and the surroundings of the hotel to record and to make sure that any claims of the seller will be validated

• Document Confirmation - Any document related to the establishment of the hotels such as licenses, permits, company documents, etc, will be confirmed and validated by our team at the respective government offices overseeing the issuance of such documents.

• Business History - We also check the history of the business such as any sale and purchase or takeover transactions, any changes with the management, etc.

• Financial and Legal Liabilities - We are keen on making sure that the hotel is ready for takeover or selling, so we also check all possible liabilities between the hotel and its shareholders/managers and possible debtors.

Summary Our Hotel Due Diligence service may seem complicated and overbearing but we only want to make sure any transactions done in Indonesia which includes foreigners are done perfectly and safe for both parties. We can provide you with a basic report that confirms the current government records of the title type, its ownership, and the existence of recorded mortgages, liens, leases, and other encumbrances of the other party. Our reports will be in English and will be sent to you in PDF format. We will also translate Indonesian documents to English according to your order.