Run legal-use, physical-condition, environmental and insurance work concurrently. Give specialists the proposed business plan; an inspection scoped only around the existing use may not answer your conversion or renovation questions.
| Workstream | Who to contact | Required output or question |
|---|---|---|
| Title, boundaries and access | Transaction counsel, title company, licensed surveyor | Ownership rights, encroachments, access and survey exceptions |
| Existing and proposed legal use | Local planning/building authority and land-use counsel | Written understanding of permitted use, conditions and approval path |
| Building condition | Hotel-experienced engineer or building consultant | Defects, immediate work, replacement schedule and scope exclusions |
| Accessibility | Qualified accessibility professional and counsel | Existing obligations, alteration implications and costed remediation scope |
| Environmental | Qualified environmental professional | Appropriate assessment, follow-up requirements and acquisition timing |
| Fire and life safety | Relevant authority and specialist | Unresolved deficiencies, inspection requirements and proposed-work implications |
| Food, alcohol, pools and other activities | Relevant licensing authorities | Correct holder, transfer/new-application route and timing |
| Catastrophe and insurance | Broker, insurers and specialist assessors | Obtainable coverage, exclusions, deductibles and underwriting conditions |
Which technical standards should you discuss?
ASTM E2018-24 describes a baseline property-condition-assessment process. Agree any additional hotel-specific investigations, specialist testing and lender requirements in the engagement; the name of the standard is not a promise that every hidden defect will be found. (store.astm.org)
For environmental work, EPA recognizes ASTM E1527-21 as consistent with All Appropriate Inquiries requirements. Environmental liability protection involves more than possessing a report: EPA identifies pre-acquisition inquiry and continuing post-acquisition obligations. (epa.gov)
Timing matters. ASTM states that specified AAI components must be conducted or updated within 180 days before acquisition, with other components within one year. The report-cover date alone does not establish that each component is current. Have the environmental professional and counsel verify the dates and reliance position. (store.astm.org)
Why is an accessibility review more than counting accessible rooms?
DOJ guidance addresses existing-facility barrier removal as well as new construction and alterations. Hotel reservation procedures also have accessibility obligations. Ask the reviewer to cover the physical guest journey and booking process, and to distinguish applicable legal requirements from optional improvements. (ada.gov)
Why must permissions be checked locally?
A national checklist does not establish a hotel’s licensing position. For example, New York City has required a hotel operating license since May 3, 2025; its official page identifies the day-to-day operator and a separate license for each hotel. That is a jurisdiction-specific obligation, not a nationwide rule. (portal.311.nyc.gov)
How should you test insurance before closing?
Start with loss runs, construction details, roof and equipment information, prior claims and the proposed business activities. Use FEMA’s map resources to investigate mapped flood hazards, then obtain property-specific insurance advice rather than treating a map as a coverage decision. (fema.gov)
Request quotations early enough to influence the acquisition decision. HVS specifically warns that a buyer’s insurance cost can differ materially from the seller’s and recommends early broker engagement during diligence. (hvs.com)
Gate 5: do not release a diligence contingency while a material safety, environmental, legal-use or insurability question remains unresolved unless counsel has structured a protection you deliberately accept and can fund.