In the context of securities offerings, a letter written by a company's auditors and delivered to the underwriters in a registered offering or to the initial purchasers or placement agents in a private placement. The comfort letter provides certain assurances about the financial information included in a registration statement or offering memorandum, as applicable, and compares certain financial information included in an offering document to the company's audited and unaudited financial statements. A comfort letter may also discuss the results of certain additional agreed upon procedures undertaken by the auditors.

For additional information, see:

In the context of real estate financing, a letter agreement between a real estate lender and the franchisor of a branded hospitality property setting out their respective rights after a default by the hotel owner under the loan or the hotel franchise agreement. For additional information, see Practice Note, Negotiating Comfort Letters in Hotel Loans.