Hotel Purchase Agreement Template for Malaysia

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Key Requirements PROMPT example:

Hotel Purchase Agreement

"I need a Hotel Purchase Agreement for acquiring a 200-room beachfront hotel in Penang, Malaysia, with completion planned for March 2025; the agreement needs to include provisions for retaining existing staff and maintaining current tour operator contracts."

Document background
The Hotel Purchase Agreement is a specialized commercial contract used in Malaysia for the acquisition of hotel properties, incorporating both real estate and operational aspects of hotel businesses. This document is essential when purchasing an operational hotel or hotel development project in Malaysia, requiring careful consideration of local property laws, tourism regulations, and business operation requirements. The agreement typically covers the transfer of land, buildings, equipment, licenses, permits, and often includes provisions for existing staff and management contracts. It must comply with Malaysian legislation including the National Land Code 1965, Tourism Industry Act 1992, and various local authority requirements. The document is particularly important for ensuring smooth transition of ownership while maintaining operational continuity and regulatory compliance in the Malaysian hospitality sector.
Suggested Sections

1. Parties: Identification of the seller and purchaser, including full legal names, registration numbers, and registered addresses

2. Background: Context of the transaction, brief description of the hotel property, and purpose of the agreement

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Sale and Purchase: Core terms of the transaction including purchase price, payment terms, and completion conditions

5. Property Details: Comprehensive description of the hotel property, land, buildings, and facilities included in the sale

6. Due Diligence: Requirements and procedures for the buyer's investigation of the property and business

7. Conditions Precedent: Conditions that must be satisfied before completion of the purchase

8. Completion: Process and requirements for closing the transaction

9. Warranties and Representations: Seller's warranties regarding the property, business, and compliance with laws

10. Employee Matters: Treatment of existing employees and related liabilities

11. Licenses and Permits: Transfer or reapplication of necessary operational licenses and permits

12. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

13. Notices: Process for serving formal notices between parties

14. Execution: Signature blocks and execution formalities

Optional Sections

1. Brand and Intellectual Property: Required if the hotel operates under a specific brand or franchise arrangement

2. Management Agreements: Needed if there's an existing hotel management agreement to be transferred or terminated

3. Environmental Matters: Additional provisions if there are specific environmental concerns or requirements

4. Development Rights: Include if there are unused development rights or ongoing development plans

5. Foreign Investment Provisions: Required if the purchaser is a foreign entity, addressing specific foreign ownership requirements

6. Financing Provisions: Include if the purchase involves specific financing arrangements or conditions

7. Tax Structure: Special provisions for tax optimization structures if applicable

Suggested Schedules

1. Property Description Schedule: Detailed legal description of the land, building plans, and boundaries

2. Inventory Schedule: Complete list of furniture, fixtures, equipment, and other movable property included in the sale

3. Employee Schedule: List of current employees, positions, and employment terms

4. Contracts Schedule: List of all ongoing contracts, services agreements, and other commitments

5. Licenses Schedule: Details of all operational licenses, permits, and certificates

6. Financial Statements: Recent financial statements and operating performance data

7. Outstanding Liabilities: List of any liabilities, debts, or claims against the property

8. Form of Transfer Documents: Templates for transfer instruments and other completion documents

9. Insurance Schedule: Details of existing insurance policies and claims history

10. Environmental Reports: Environmental assessment reports and compliance certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Hospitality

Real Estate

Tourism

Property Development

Hotel Management

Investment

Commercial Property

Leisure and Entertainment

Food and Beverage

Corporate Services

Relevant Teams

Legal

Real Estate

Operations

Finance

Compliance

Risk Management

Business Development

Asset Management

Property Management

Corporate Development

Investment

Due Diligence

Relevant Roles

CEO

Chief Legal Officer

Hotel General Manager

Real Estate Director

Investment Manager

Property Development Manager

Compliance Officer

Operations Director

Asset Manager

Acquisitions Manager

Corporate Lawyer

Finance Director

Risk Manager

Property Manager

Business Development Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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