A high weighted score must not compensate for a material unresolved condition. Use the following proposed gates before recommending an unconditional commitment. A gate can be passed, held pending evidence, or failed because an unacceptable condition has been established.
| Gate | Evidence required to pass | Hold or fail condition |
|---|---|---|
| Authority and conflicts | Identity of contracting entities; decision authority; disclosure of referral payments, related-party suppliers and other economic interests | Material undisclosed conflict, misleading representation or inability to identify the responsible counterparty |
| Lawful and safe operating plan | Property-specific specialist review; approvals and remediation responsibilities; costed, funded timetable | An unresolved condition that prevents the proposed lawful operation or leaves a material safety issue unaddressed |
| Capital and liquidity funding | Sources-and-uses schedule; monthly cash forecast; documented access to required funding | Essential works or downside cash deficits depend on unspecified future equity or refinancing |
| Reproducible economics | Reviewable financial model, fee schedules and material underlying records | Owner cash cannot be reproduced, material charges remain undefined, or the supplier refuses reasonable verification |
| Contract and lender compatibility | Counsel’s issue list; required brand, lender and owner consents; financeable obligations | The proposed agreement conflicts with financing requirements or creates unacceptable unbounded obligations |
| Data and operating continuity | Contractual access to necessary records and accounts; tested handover responsibilities | No credible means to retain required operating information or maintain essential systems through transition |
These are diligence gates, not legal conclusions. For example, DOJ’s lodging guidance addresses accessibility obligations, while its Title III regulations include reservation-specific requirements. Physical access and booking procedures therefore warrant separate review. (ada.gov)
For conversions, a plausible route to approval is not the same as permission to open. Record exactly which activities may proceed, which approvals remain outstanding, and what expenditure is at risk before those approvals are obtained.