Sonnenblick-Eichner Company Arranges $26,750,000 of First Mortgage Financing for Two Northern California Hotels
Sonnenblick-Eichner Company | January 10th, 2023
Hilton to Bring First Waldorf Astoria Property to Costa Rica
Hilton | November 15th, 2022
What to Expect in the Hospitality Industry in 2024
Mark D. Podgainy | March 4, 2024
By Mark D. Podgainy The hospitality industry experienced a modest increase in RevPAR in 2023, and the industry seems to be optimistic about the future. What’s ahead for 2024? Uncertainty is the major theme. What’s Ahead • Interest rates will be higher for longer. Expectations of a number of rapid cuts to the Federal Funds rate early this year have been dashed with the latest inflation data. Most economists still expect reductions in the Federal Funds rate but have pushed back the time frame for the first reduction to late spring and have reduced their forecasts for the number of reductions. If inflation remains stubbornly high,...
Hyatt Reports Fourth Quarter and Full Year 2023 Results
Hyatt Hotels Corporation | February 26, 2024
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The Role of USALI and Operational Benchmarking in Financial Management
Arlene Ramirez | February 13, 2024
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Q4 2023 Major U.S. Hotel Sales Survey
Daniel Lesser | February 7, 2024
At the dawn of 2024, a U.S. presidential election looms amidst numerous geopolitical challenges including two major ongoing wars in Europe and the Middle East which threaten global economic growth. The good news is, thus far it appears the U.S. economy has avoided recession with many now perceiving continued growth, albeit subdued. Inflation has cooled, the economy continues to add jobs, interest rates appear to have peaked and are anticipated to gradually decline for the next two years. Furthermore, a roaring stock market continues to fuel American consumer expenditures resulting in strong demand for travel including lodging. Despite a re...
Global Hotel Investment Volume Will Accelerate in 2024, Exceeding the Previous Year by 15% to 25%
JLL | January 24, 2024
JLL’s 2024 Global Hotel Investment Outlook outlines the resilience and growth of the hotel sector as consumers continue to prioritize spending on travel CHICAGO, Jan. 24, 2024 – JLL’s Hotels & Hospitality Group has released their flagship Global Hotel Investment Outlook, which reveals that global hotel performance soared in 2023, reaching a full recovery. Though 2023 proved to be a challenging year for commercial real estate, marked by geopolitical tensions and capital market dislocation, the lodging industry demonstrated resilience, with RevPAR (revenue per available room) achieving a full recovery and surpassing 2019 levels b...
Development Launched for Marbella Resort Hotel, Vignette Collection the World Islands Dubai With a January 2026 Opening Planned
IHG | November 2, 2023
Dubai, United Arab Emirates, 2nd November 2023: IHG Hotels & Resorts, one of the world’s leading hotel companies, has announced the signing of a franchise agreement for its second Vignette Collection hotel in Dubai in partnership with The Heart of Europe, the flagship project under Kleindienst Group. Scheduled for a grand opening in January 2026, Marbella Resort Hotel, Vignette Collection The World Islands Dubai, will mark a significant milestone for The Heart of Europe, solidifying IHG’s presence within The World Islands – an archipelago of manmade islands located in the Arabian Gulf, off the coast of Dubai. The Vignette Colle...
IHG Adds 350-Keys to Its Punjab Portfolio With a Dual Hotel Signing
IHG | November 2, 2023
The signing will see the debut of Crowne Plaza in Punjab and the expansion of Holiday Inn brand in Zirakpur Both hotels will add 100,000 sq. ft of meeting space to capture MICE opportunities 2nd November 2023, New Delhi: IHG®Hotels & Resorts, one of the world’s leading hotel companies, has signed a management agreement with NK Sharma Hospitality Pvt Ltd to develop two new hotels in the Chandigarh tri-city area - Crowne Plaza Chandigarh Zirakpur in the premium segment and Holiday Inn & Suites Chandigarh Zirakpur from the essentials collection. Currently under construction, both hotels are scheduled to open in January 20...
New Data Shows Investment Returning to Global Tourism Sector
UNWTO | September 14, 2023
Investment in the global tourism cluster has started to bounce back from the lows it touched during the pandemic off the back of the steady recovery of international tourist arrivals, according to a newly released report jointly produced by UNWTO and fDi Intelligence. The report, which is based on data from fDi Markets, fDi Intelligence's proprietary database of greenfield FDI projects, as well as international tourism data from UNWTO, provides a broad overview of the ongoing investment cycle in the tourism sector, breaking down investment figures by region, segments and companies. Key findings include: Both FDI project numbers and job ...
Engage Their Hearts and Minds First
David Lund | September 5, 2023
You might think that getting your hotel leadership team excited about accounting is like convincing them it is fun to go to the dentist. Your average person wants nothing to do with it because they are predisposed to think it is yucky, boring and better left to someone who has trouble walking and talking at the same time. But once they begin to understand what the numbers mean and how they apply this understanding to general operations and the bottom line, they will feel just the opposite. My book, The Prosperous Hotelier, aims to do just that. Hotel leaders ALL want to have the financial wherewithal to dazzle their peers. They know i...
What Is “Hospitality Financial Leadership”?
David Lund | August 7, 2023
Book Sample – The Prosperous Hotelier By David Lund A few years ago, finding the three words "hospitality financial leadership” together in one sentence was not possible. I know because I tried to Google them in 2014 and came up with a grab-bag of ideas on leadership, consulting, courses and more. Even the words “financial leadership” revealed surprisingly little – some tidbits about CEOs and their roles, but nothing any broader. Yet, in my opinion, financial leadership is the cornerstone of any manager, executive or leader’s business acumen. It enables an individual to see the importance of being plugged into the strategy ...
The Mogharebi Group Advises Sunstone Development on Acquisition of Budget Inn Near Disneyland Park in Anaheim
The Mogharebi Group | August 3, 2023
Anaheim, CA (August 3, 2023) – The Mogharebi Group has arranged the sale of the 60-year-old Budget Inn, a 24-key limited-service hotel located at 1042 Ball Road in Anaheim, announced Mogharebi’s Executive Vice President Otto Ozen. The buyer was local private investor Sunstone Development which intends to explore long-term alternative strategies for the site including full-service hotel uses. The off-market transaction completes Sunstone’s 1.1-acre land assemblage at the gateway to Disneyland Park that included the purchase of the adjacent 44-key Days Inn by Wyndham last year. Sunstone recognized that together, these properties comb...
Marriott International Reports Second Quarter 2023 Results and Raises Full Year Outlook
Marriott International, Inc. | August 1, 2023
Second quarter 2023 comparable systemwide constant dollar RevPAR increased 13.5 percent worldwide, 6.0 percent in the U.S. & Canada, and 39.1 percent in international markets, compared to the 2022 second quarter; Second quarter reported diluted EPS totaled $2.38, compared to reported diluted EPS of $2.06 in the year-ago quarter. Second quarter adjusted diluted EPS totaled $2.26, compared to second quarter 2022 adjusted diluted EPS of $1.80; Second quarter reported net income totaled $726 million, compared to reported net income of $678 million in the year-ago quarter. Second quarter adjusted net income totaled $690 million, c...
HVS U.S. Hotel Development Cost Survey 2023
Luigi Major, MAI | July 27, 2023
By Luigi Major, MAI Each year, HVS researches and compiles development costs from our database of actual hotel construction budgets. This source provides the basis for our illustrated total development costs per room/per product type. INTRODUCTION After reaching an all-time low in 2020, attributed to the impact of the COVID-19 pandemic, the national lodging market quickly rebounded to an all-time revenue per available room (RevPAR) high in 2022. While occupancy levels in 2022 remained below 2019 levels, ADR exceeded 2019 levels that year, propelled by a combination of inflation and a surge of leisure travel in the post-COVID-19 era. Dat...
Ennismore Signs Its First Lifestyle Hotel in Turkey With Hyde Bodrum
Ennismore | July 26, 2023
NEW YORK, July 26, 2023 -- Ennismore, the fastest-growing lifestyle hospitality company, today announces the signing of Hyde Bodrum, opening in early 2024, which marks two significant milestones for the brand – the first property in Turkey and the first all-inclusive resort. Hyde Bodrum will exclusively offer an adults-only all-inclusive experience focused on a festival feeling through music, DJs, acoustic sets, festival stages, and other highly curated entertainment and sports activities. Hyde Bodrum will combine the luxe all-inclusive offering with exceptional and varied culinary destinations, with the design and programming of ...
Hospitality Finance Breakfast Briefing: Bringing Down the Cost of Capital and Filling Your Capital Stack
Jim Butler | July 26, 2023
By Jim Butler and the Global Hospitality Group® Earlier this week, the Global Hospitality Group® co-hosted a breakfast briefing in Los Angeles with CREDE, a leading real estate development and project management firm. The program focused on how hotel owners and developers can reduce their cost of capital and costs of construction while filling in gaps in their capital stack through a few critical construction management techniques and exploitation of both traditional and alternative financing options. Luigi Major, Managing Director of HVS, opened the program with an economic overview, providing an inspiring update on the state of the i...
Sonnenblick-Eichner Company Arranges $100 Million Sale of The Inn at Rancho Santa Fe, Rancho Santa Fe, California
Sonnenblick-Eichner Company | July 25, 2023
Beverly Hills, CA (July 25, 2023) -- Sonnenblick-Eichner Company, on behalf of Steve Hermann Hotels, has arranged a $100 million sale of The Inn at Rancho Santa Fe, an 85-room, full-service, luxury boutique resort located in north San Diego County’s exclusive enclave of Rancho Santa Fe, CA. The resort is undergoing an extensive “top-to-bottom” renovation. When fully operational in the fourth quarter of this year, it will be positioned as one of the most preeminent and exclusive destinations in California. The resort was purchased by an institutional investment fund. “We were able to generate interest in the acquisition given...
Q2 2023 Major U.S. Hotel Sales Survey
Daniel Lesser | July 20, 2023
By Daniel Lesser Defying the expectations of many, the U.S. economy has demonstrated resilience driven in part by a solid employment report with stronger-than-expected wage growth during June, along with continued healthy levels of consumer spending. With this said, the U.S. economy has been slowed by the Federal Reserve’s aggressive drive to tame inflation through a series of interest rate hikes that began early last year. Although trending downward, with inflation remaining above its two percent target, the Federal Reserve is on track to raise interest rates again this month and mull another hike as soon as September. Despite elevate...
Global Deal Activity Down By 27% YoY During January-May 2023, Finds GlobalData
GlobalData | June 16, 2023
A total of 22,525 deals (merger & acquisitions (M&A), private equity, and venture financing deals) were announced globally during January-May 2023, which was a decline of 27% over the 30,753 deals announced during same period in 2022, reveals GlobalData, a leading data and analytics company. An analysis of GlobalData’s Financial Deals Database revealed that all the deal types (under coverage) witnessed year-on-year (YoY) decline during January-May 2023. The number of M&A, private equity and venture financing deals declined by 21%, 28% and 33%, respectively, during the period. Aurojyoti Bose, Lead Analyst at GlobalData, ...
Incentive Management Fees Return With Recovery
Robert Mandelbaum and Tim Dick, Ph.D. | May 4, 2023
By Robert Mandelbaum and Tim Dick, Ph.D. Most management contracts include an incentive management fee in addition to the base management fee. The incentive fees are designed to make management more conscious of the bottom line since owners achieve their returns and pay their debts from profits, not revenue. Incentive management fees are earned by the operator once a designated profit threshold is achieved. Given the depressed performance of hotels during the 2020 industry downturn, unsurprisingly almost no hotel owners paid an incentive fee to their managers that year. Fortunately for U.S. hotel operators, incentive fees have risen con...
Private Equity Steps Up Its Interest in Hotel Assets, Hears Webinar
HVS | May 2, 2023
2 May 2023, London: A webinar held last week [27th April 2023] heard a topical discussion from a line-up of expert speakers on the increasing participation of private equity in the hotel investment landscape, the outlook for these investors and what private equity investors are looking for in the hotel sector. The webinar, organised by global hotel consultancy HVS, Bird & Bird, AlixPartners and EP Business in Hospitality, kicked off with positive feedback from an audience poll in which 41% of attendees said they expected investment in hotels to grow by 10% or more over the next 12 months with city centre, full service hotels and ...
Q1 2023 Major U.S. Hotel Sales Survey
Daniel Lesser | April 21, 2023
By Daniel Lesser With continued elevated levels of inflation and interest rates, and fears of an impending economic recession, the U.S. commercial real estate industry continues to find itself in choppy waters. The recent stunning and swift collapse of Silicon Valley Bank (SVB), and subsequent failures of Signature Bank (SB), and Credit Suisse Group AG (CS) has created a perceived credit crunch now rippling across the global financial system. The SVB implosion was caused by a three-year monetary policy that began during the COVID pandemic and included enormous sums of government stimulus and near-zero interest rates resulting in a bloat...
Meet the Money Returns on May 1-3, 2023 in Los Angeles: Program Highlights and Registration Details
Meet the Money® | April 17, 2023
By Jim Butler and the Global Hospitality Group Hotel Lawyers | Authors of www.HotelLawBlog.com Meet the Money®, the national hotel finance and investment conference, returns for its 30th year on May 1-3, at the Hyatt Regency LAX. Attendees can look forward to three days of deal-making, networking, and high-level presentations from some of the best-known names in the hospitality industry. Meet the Money brings speakers, sponsors, and attendees together in an environment big enough to attract industry leaders, but small enough for meaningful and productive in-person meetings, where the focus is business and investment. “After a few...
What Opportunities Will You Find at Meet the Money?
Jim Butler | April 6, 2023
By Jim Butler and the Global Hospitality Group The energy is building as we prepare for Meet the Money’s return in May! Our registrants can look forward to an exciting conference structured around networking, dealmaking, and gathering insight from the industry’s best minds. There are plenty of opportunities in today’s hospitality industry for those seeking them, and Meet the Money is an ideal place to start looking. Who will you meet, and what possibilities will you find? Hotel owners, operators, developers, lenders and investors will come together at this year’s conference to build networks, resolve challenges, find financin...
Hunter Hotel Investment Conference: Revenue Strategy Panel Recap
Stephanie Smith | March 30, 2023
By Stephanie Smith Our team at Cogwheel Marketing attended the 2023 annual Hunter Hotel Investment Conference for a consecutive year and we wanted to be sure to share with our network the 10 Key Takeaways we extracted after packing in 3 days of education, collaboration and relationship building with hotel industry experts. The Hunter Hotel Investment Conference welcomed attendees to Atlanta in March 2023. The revenue strategy panel included: Isaac Collazo (Moderator) of STR Alex Cisneros of Red Roof Inn Casi Johnson of M3 Kate Burda of Kate Burda and Company Sarah Williams of Intermountain Hotels 10 Key Takeaways...
