The rapid spread of the coronavirus disease (COVID-19) is a major public health challenge that is affecting businesses and individuals globally, causing a particular disruption for the hotel and leisure industry worldwide. The Polish hotel market is not safe from that adverse effect, which has a direct impact on hotel lease, franchise and management agreements in respect of hotels operating in Poland.

In order to contain the spread of the coronavirus, on 31 March 2020, the Polish Council of Ministers enacted a decree on establishment of certain restrictions, orders and prohibitions in connection with the occurrence of the state of an epidemic.

In addition, on 31 March 2020, the Polish Parliament enacted a so-called “rescue package”, with the aim of supporting Polish businesses and individuals, and to the extent possible, shielding them from the effects of COVID-19 related disruptions. The rescue package which entered into force on 31 March 2020 consists of multiple measures related to, among others, labour, tax, real estate, commercial and financial law.

Both the decree and the rescue package contain regulations directly impacting the hotel business in Poland.

Topics you can find in the alert:

• Ban on hotel activity
• Can tenants terminate their hotel leases?
• Are tenants entitled to claim rent suspension/reduction?
• Are tenants entitled to claim suspension/reduction of service charges?
• Can the tenants request an extension of the lease agreements ending before 30 June 2020?
• Can the landlords terminate lease agreements before 30 June 2020?
• Can franchisees or franchisors terminate hotel franchising agreements?
• Are franchisees entitled to claim suspension/reduction of franchise fees?
• Can hotel managers or hotel operators terminate hotel management agreements?
• Are hotel operators (owners) entitled to claim suspension/reduction of fees under hotel management agreements?

Read the alert here