News & Stories
Munich. On 25 January, the Munich Regional Court rejected a rent reduction in favour of a hotel operator despite the corona pandemic. The operator was expected to establish sufficient reserves, the Court stated.
Munich. The restaurant and hotel industries have been hit especially hard by the closures ordered by the authorities during the pandemic. At the same time, many had taken out appropriate business closure insurance in good time. But many insurers in Germany are refusing to pay. However, two judgements have set a new course.
Karlsruhe. The Federal Constitutional Court rejected the complaint of a group of six hoteliers on the violation of constitutional rights as "inadmissible" this week. The hoteliers are now taking a new approach and going through different Instances.
Berlin. Discussions between owners and tenants/lessees regarding rent deferrals or waivers - discussions which in many cases have been ongoing in Germany since March - have now been decided in favour of the tenants. The pandemic will be recognised as an interference with the basis of the business transaction within the meaning of § 313 German Civil Code. Individual negotiations between the parties will still be needed though.
Berlin. This Wednesday in Berlin, the Bundestag pushed through the highly controversial amendments to the third Infection Protection Law, which have fatal consequences for the hospitality industry. In future, the government can completely stop travel! Together with two members, the industry association Dehoga will file a suit with the Federal Constitutional Court.
Munich. The first wave of the corona pandemic in spring 2020 immediately gave rise to a debate about the right to rent reduction in a pandemic situation. Given the renewed seriousness of the situation this autumn, the German Federal Minister of Justice, Christine Lambrecht, has now responded positively to this suggestion. But legal experts see little legal scope for euphoria on the part of tenants. This is an assessment that is likely to reignite the discussion after the second lockdown and after the government's recent decision this Wednesday on further possible closures.
Berlin. The struggle of the hotel industry and tourism is becoming increasingly precarious. The German Bundestag now wants to enshrine a ban on accommodation for all types of travel by law. The 2nd lockdown in November alone will result in a 10.2 billion loss of turnover. Step by step critical points start moving – again by the courts, not by the government. For example, a court finally announed state aid for medium-sized companies with 50 or more employees, and a regional court recognised the tenant's right to a substantial reduction in rent in the event of state-ordered closures.
Berlin/Hamburg. Given the persistent negative performance of the economy, the German government is now pushing forward with an amendment to the Insolvency Suspension Act. There are new tools for restructuring and stabilisation and changes to the existing insolvency procedures.
Paris. Paris city hall has won a battle against short-term rentals listed on Airbnb and other platforms. The ruling will be used as jurisprudence in many other European cities where rentals increased property prices and impacted housing markets.
Berlin/Cologne. On Wednesday evening, German government extended the suspension of the obligation to file for insolvency under current legislation and at same time modified that obligation. For Dirk Iserlohe of Honestis AG, the result of all this will only be to delay insolvencies with even more serious consequences. He continues to put up a political fight for proper focus on the real provisions that would indeed be capable of avoiding a wave of insolvencies in the hotel and tourism industry.