In re: John Q. Hammons Fall 2006, LLC

Analysis Group was retained by counsel for JD Holdings, LLC (JD Holdings), a hotel developer and operator, in a long-running dispute with affiliates of John Q. Hammons Hotels and Resorts (Hammons).

JD Holdings and Hammons entered into a right of first refusal (ROFR) agreement granting JD Holdings the right to match any third-party bid for certain hotels owned by Hammons. Subsequently, the parties entered into a related agreement under which Hammons committed to provide seller financing with respect to any Hammons hotel that JD Holdings acquired pursuant to the ROFR agreement. Hammons failed to fulfill its obligations under these agreements, leading JD Holdings to sue for damages.

Supported by a team that included Managing Principal Mike Holland, Vice Presidents Laura Comstock and Xinyu Ji, and Manager Peter Fabbrucci, Analysis Group affiliate Timothy J. Riddiough filed an expert report examining issues including bidding behavior in the presence of a ROFR, portfolio premiums associated with bulk sales of hotels, and market terms and conditions of commercial real estate mezzanine debt, ultimately estimating damages incurred by JD Holdings.

Shortly after the filing of Professor Riddiough’s report, the parties reached a settlement under which JD Holdings acquired the at-issue hotels.