February 2026 The hidden cost of fire protection failures

Why incomplete inspections and superficial due diligence create material liability and investment risk in hotel properties.
It is unlikely to be coincidence that the Hotel du Golf & Palace in Crans-Montana was recently closed and evacuated on fire protection grounds by the cantonal authorities. One may reasonably conclude that the deficiencies cited had not arisen in the preceding twelve months. Many hoteliers and operators in Switzerland — and elsewhere — should now expect markedly less tolerance from building authorities when identified deficiencies come to light. Regular statutory inspections, which are far from universal in Germany either, will increasingly be enforced. Hotel properties have frequently changed hands as ‘defect-free’ assets purely because they had not been inspected for years. A liability event opens what can only be described as Pandora’s box. A technical due diligence exercise that is genuinely fit for purpose eliminates this risk before the transaction closes.