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
A Review of Equity Yields and Discount Rates in a Post-COVID Environment
Katy Black | October 13, 2022
By Katy Black Equity yields and discount rates remain at or below pre-COVID levels; however, rising debt costs will result in changing investor return expectations. HVS continually tracks the discount rates and equity yields for the assets on which we consult. In the case of hotels that were sold near the date of our valuation, we were able to derive the equity yield rate and unlevered discount rate by inserting the ten-year projection, total investment (purchase price and estimated capital expenditure and/or PIP), and debt assumptions into a valuation model and solving for the equity yield. Equity yield is the rate of return that an...
VICI Properties Inc. Invests in Great Wolf Lodge Gulf Coast Texas
VICI Properties | September 23, 2022
NEW YORK--VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the “Company”) announced today that the Company has agreed to provide a mezzanine loan for up to $127.0 million to Great Wolf Resorts, Inc. (“Great Wolf”) related to the development of Great Wolf Lodge Gulf Coast Texas, a more than $200 million family resort project in Webster, TX. The 532-room indoor water park resort was officially announced today during a groundbreaking event and is expected to start welcoming guests in mid-to-late 2024. The mezzanine loan has an initial term of 3 years with two 12-month extension options subject to certain conditions. The invest...
Global Hotel Investment on the Rise With Nearly 80% of Investors Revealing Plans to Buy in 2022
JLL | September 22, 2022
CHICAGO, September 22, 2022 – JLL’s Hotels & Hospitality Group has released their latest Global Hotel Investor Sentiment Survey, which reveals nearly 80% of investors plan to be net buyers in 2022. JLL surveyed global hotel investors to understand their evolving investment appetite, expectations around the industry’s recovery timeline and industry outlook. Hotel investors expressed a strengthened appetite as fundamentals continue to recover with 20% of investors indicating they will deploy between $501 million to $1 billion+ worth of capital into the hospitality sector, up from 7% of investors in 2021 and 16% in 2020. This is ...
Hospitality Financial Leadership – Why You Need an Internal Control Review Program in Your Hotel – ICR
David Lund | September 6, 2022
By David Lund Here’s the scenario. You have finally got a full-blown accounting policy manual in place. It has taken several months and a lot of work, but it’s done. Something to be proud of indeed! But wait a minute, it seems like no one knows about these policies and whenever you speak about such and such internal control not being followed, you get the deer in the headlights look. This all too familiar stare means one thing, these people have no idea what you’re talking about. Your policy manual might be complete but you’re still a long way from compliance. What’s the solution? The answer is you need a regular program to ...
Colebrook Financial Finances Vacatia’s Acquisition of Liberte Management, LLC
Colebrrok Financial Company | August 31, 2022
Middletown, CT (August 31, 2022) –Colebrook Financial Company, a leading lender to the timeshare and travel club industries has provided financing to Vacatia Inc., a leading provider of innovative, customer-centric solutions for timeshare resorts, to acquire Liberté Management Company. Liberté Management Group, a Vacatia Company, manages six Florida properties located on St. Pete Beach, Redington Shores, Madeira Beach, Treasure Island and Belleair Beach. Vacatia is an innovative hospitality company offering resort residence rentals and timeshare resales. The Mill Valley, California--based company also partners with timeshare home...
A Hotel Debt Quagmire: Borrowers With Maturing Loans Have Increasingly Fewer Options
The Plasencia Group | August 26, 2022
By Dexter Wood New Debt Has Vanished New debt for hotel acquisitions has all but vanished, but a bigger problem may be the wave of existing debt facilities of all types that are scheduled to mature this year and next. Beginning at the start of 2022 and through the end of 2023, nearly 45,000 CMBS hotel loans totaling about $30 billion in value were set to mature as illustrated in the graph at right. Although the lodging industry has made great progress since the depths of the COVID-19 pandemic, the recovery has proven to be uneven, selective, and vulnerable to a plethora of external factors. ...
Lodging Companies Tout Strength of Recovery
HotStats | August 15, 2022
Recent second-quarter earnings reports from the major lodging companies points to a sustained recovery within the global hotel industry. They reported significantly improved results over the first quarter of 2022, with many profitability metrics outpacing those in 2019. Even Marriott International was surprised at the speed of the recovery. “There's no doubt that the recovery has accelerated faster than we had originally anticipated,” said Marriott CFO Leeny Oberg. Marriott’s operating income in the second quarter came in at $950 million, nearly double the $486 million reported the same quarter a year ago. Same with adjusted earni...
Hotels Are Finding Room for Co-Living Spaces
JLL | August 9, 2022
Co-living projects are on the rise in converted hospitality properties amid a hunt for rental growth Hotels are increasingly being turned into co-living spaces in markets where institutional investors are hunting for cheaper alternatives to residential conversions and high rental growth potential. In June, a US$200 million joint venture between asset manager PGIM Real Estate and co-living operator Weave acquired Rosedale Hotel in Kowloon, Hong Kong, with the intention of converting the 435-key property into a co-living property. Meanwhile, in Singapore, real estate management firm LHN Group has invested S$90.5 million (US$65.5 million)...
Quantifying the Franchise Relationship During COVID-19
Robert Mandelbaum | August 8, 2022
By Robert Mandelbaum In 2020, the average hotel in CBRE’s annual Trends® in the Hotel Industry survey experienced a 108 percent decline in earnings before interest, taxes, depreciation and amortization (EBITDA), resulting in an EBITDA margin of -5.5 percent. For hotels, EBITDA represents the cash flows from operations that are used to fund debt service and provide returns to investors. This is by far the greatest decline in EBITDA since CBRE began tracking the performance of the U.S. lodging industry in the 1930s. Facing such traumatic declines in profitability and insolvency, hotel owners reached out to their lenders, investors...
Wyndham Hotels & Resorts Reports Second Quarter 2022 Results
Wyndham Hotels & Resorts | July 27, 2022
PARSIPPANY, N.J., July 27, 2022 -- Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended June 30, 2022. "We kicked off our high-demand summer season with the strongest Memorial Day we've ever experienced, as guests traveled further, stayed longer and spent more at our hotels than they did pre-pandemic," said Geoffrey A. Ballotti, president and chief executive officer. "Our business experienced another strong quarter performing above both last year and 2019 as international recovery accelerated and our development teams grew our pipeline to a record level. Our second quarter results once again demon...
Hilton Reports Second Quarter Results; Exceeds Expectations and Raises Full Year Outlook
Hilton | July 27, 2022
MCLEAN, VA - Hilton Worldwide Holdings Inc. ("Hilton" or the "Company") (NYSE: HLT) today reported its second quarter 2022 results. Highlights include: Diluted EPS was $1.32 for the second quarter, and diluted EPS, adjusted for special items, was $1.29 Net income was $367 million for the second quarter, exceeding the high end of guidance Adjusted EBITDA was $679 million for the second quarter, exceeding the high end of guidance System-wide comparable RevPAR increased 54.3 percent, on a currency neutral basis, for the second quarter compared to the same period in 2021 System-wide comparable RevPAR was down 2.1 percent, on a cu...
Should Hotels Complete a Reserve Fund Study
Larry and Adam Mogelonsky | July 27, 2022
By Larry and Adam Mogelonsky One of the obligations of moving from a home to a condominium is to take your turn on the board of directors. Don’t let anyone fool you into believing that this is a simple, 10-hours-a-month task. The time investment is significantly higher, and even though there is no financial remuneration, your fellow unit owners will treat you as if you’re a paid servant. Perhaps this situation strikes closer to home for many of you already. As we’ll examine later on in this article, everything is up for grabs as inflation rolls through various sectors of the economy. This is a critical-yet-still-underappreciated v...
Agilysys Fiscal 2023 First Quarter Revenue Rises 22.7% to Record $47.5M
Agilysys | July 27, 2022
Alpharetta, GA – July 27, 2022 - Agilysys, Inc. (NASDAQ: AGYS), a global provider of next-generation hospitality software solutions and services, today reported operating results for its fiscal 2023 first quarter and period ended June 30, 2022. Summary of Fiscal 2023 First Quarter Financial Results Total net revenue increased 22.7% to a record $47.5 million, compared to total net revenue of $38.7 million in the comparable prior-year period. Recurring revenue (which comprised of subscription and maintenance charges) were a record $27.7 million, or 58.4% of total net revenue compared to $23.2 million, or 59.9% of total net revenue ...
Meyer Jabara Hotels and Vivid Capital Bring People Together to Get Deals Done
Meyer Jabara Hotels | July 21, 2022
More than 70 hotel developers, owners, brokers, consultants, franchise reps, financiers, designers, and construction experts met downtown Nashville to discuss new hotel projects at their joint commercial real estate networking event [Danbury, Conn., and Nashville, July 21, 2022] — Hotel development is alive and well and business partners are eager to get deals done. That was the take-away from the 2nd quarter Commercial Real Estate Networking Event held at the TownePlace Suites by Marriott Nashville Downtown/Capitol District, co-hosted by Meyer Jabara Hotels and Vivid Capital. More than 70 hotel developers, owners, consultants, franch...
Agilysys to Report Fiscal 2023 First Quarter Results July 26th and Host Conference Call and Webcast
Agilysys | July 13, 2022
ALPHARETTA, GA. — July 13, 2022 — Agilysys, Inc. (AGYS), a leading global provider of next-generation, cloud-native SaaS and on-premise hospitality software solutions and services, announced today that it will release its fiscal 2023 first-quarter results after the market closes on Tuesday, July 26th, 2022 and host a conference call and webcast at 4:30 p.m. ET that day. Both the call and webcast are open to the general public. All participants should register for the call using the participant registration URL: https://register.vevent.com/register/BIbcadd579f9d0440a90b3adb201ba0636 Once registered, participants will receive a conf...
Sonnenblick-Eichner Company Arranges $50,000,000 of Acquisition and Renovation Financing for The Inn at Rancho Santa Fe, California
Sonnenblick-Eichner Company | July 12, 2022
Beverly Hills, CA (July 12, 2022) – Sonnenblick-Eichner Company on behalf of Steve Herman Hotels, has arranged $50 million in first mortgage debt for the acquisition of Inn at Rancho Santa Fe, an 82-room, full-service, luxury boutique resort located in north San Diego County’s exclusive enclave of Rancho Santa Fe, CA A portion of the loan proceeds will be used by the sponsor to fund an extensive $15 million “top-to-bottom” renovation that will reposition the resort as one of the most prominent and exclusive destinations in California. The non-recourse floating rate loan, which provided for 85% of total costs including the renovatio...
NYU Investment Conference Takeaways
David J. Sangree | June 21, 2022
David Sangree, MAI, CPA, ISHC had the opportunity to attend the NYU International Hospitality Industry Investment Conference on June 6-7 at the New York Marriott Marquis. The following are some key highlights from the conference. ADR growth: The growth in ADR in 2022 has exceeded everyone’s projections for the industry. The actual ADR is above 2019 levels for the U.S. for the past 10 months although the inflation-adjusted ADR is just getting back to 2019 levels since March 2022. In some markets, such as the Florida Keys or northern New England, ADR growth has been well above the nation. Other urban and commercial-oriented markets have se...
Sonnenblick-Eichner Company Advises on $35 Million of Interim Leasehold First Mortgage Financing for Moxy Oakland Downtown, Oakland, California
Sonnenblick-Eichner Company | June 14, 2022
Beverly Hills, CA, (June 14, 2022) -- Sonnenblick-Eichner Company announced today that it was the exclusive advisor to the Borrower for the placement of $35 million of first mortgage interim financing for the leasehold interest in the Moxy Oakland Downtown, a 172-room hotel located in the Uptown Arts and Entertainment District of Oakland, California. The hotel opened in March of 2021. Proceeds from this non-recourse financing were used to retire the construction loan and provide fresh capital to advance the hotel towards stabilization. The property was developed by Tidewater Capital and Graves Hospitality and is managed by Graves Hospitali...
Remote Accounting Is a Breeze for Treasure Island’s Fusion Resort and First Choice Hotel Management
Aptech Computer Systems | June 8, 2022
Financial services firm Grachan & Company relies on PVNG by Aptech to manage the hotel’s accounts payable, accounts receivable, and general ledger processes and share statistical data with operator First Choice Hotel Management PITTSBURGH, June 8, 2022 — Not every hotel has a full-service accounting department; some outsource financial services to a third-party to streamline processes and keep overhead to a minimum. Such is the case at Fusion Resort in Treasure Island, Fla. Operated by First Choice Hotel Management (FCHM), the company partnered with Grachan & Company, Certified Public Accountants, to oversee the property’s ...
Projects Counts in the Middle East Hotel Construction Pipeline Remain Unchanged at the End of Q1 ‘22
Lodging Econometrics | May 31, 2022
May 31, 2022 – PORTSMOUTH, NH According to Lodging Econometrics’ (LE) Construction Pipeline Trend Report for the Middle East, at the end of 2022’s first quarter, the region’s hotel construction pipeline stands at 536 projects/138,915 rooms, unchanged by project counts and down 9% by rooms year-over-year (YOY). At Q1 ‘22, projects currently under construction stand at 331 projects/91,421 rooms, down 4% by projects and 16% by rooms YOY. Projects scheduled to start construction in the next 12 months are at 78 projects/22,041 rooms, an 11% decrease by projects and 8% increase by rooms YOY. Projects in the early planning stage are at...
Agilysys Fiscal 2022 Fourth Quarter Revenue Rises 28.1% to Record $46.6M
Agilysys | May 18, 2022
Expects Fiscal 2022 Record Revenue of $162.6M to Grow to $190M to $195M in Fiscal 2023 Alpharetta, GA – May 18, 2022 - Agilysys, Inc. (NASDAQ: AGYS), a global provider of next-generation hospitality software solutions and services, today reported operating results for its fiscal 2022 fourth quarter and period ended March 31, 2022. Summary of Fiscal 2022 Fourth Quarter Financial Results Total net revenue was $46.6 million, compared to total net revenue of $36.3 million and $39.7 million in the fourth quarters of fiscal 2021 and 2020, respectively. Recurring revenue (which is comprised of support, maintenance and subscrip...
Kimpton Hotels & Restaurants Breaks Ground on First Newly Constructed Non-Gaming Hotel in Reno
Kimpton Hotels & Restaurants | May 17, 2022
SAN FRANCISCO (May 17, 2022) – Kimpton Hotels & Restaurants, part of IHG Hotels & Resorts’ Luxury & Lifestyle Collection, joined CAI Investments, key stakeholders and local officials on Friday, May 13 for a ceremonial groundbreaking event to mark the progress on its new hotel in Reno, Nevada. When it opens in late 2024, the new Kimpton in Reno will become the first newly constructed non-gaming hotel built in the city. With a prime location in the heart of Downtown and across the street from the Truckee River and Wingfield Park, the hotel will become a beacon for boutique hospitality in the “Biggest Little City in the World....
Hospitality Financial Leadership: The Bridge
David Lund | May 16, 2022
By David Lund In our lives we are continuously evolving as people. When thought of most of the time, this evolution seems like a continuous stream of challenges to overcome. This persistent development is both personal and professional. The bridge is what I refer to when I think of my advancement in the hotel profession from a 20-something leader who knew nothing about the financial goings on in the hotel to a 30-something controller who was on fire. This is all about what it takes to cross that financial bridge and what it looks and feels like once you are on the other side. I have said this is my articles many times: The hotel bus...
Choice Hotels International Reports 2022 First Quarter Results
Choice Hotels International | May 13, 2022
First quarter domestic RevPAR exceeded 2019 levels by 10.4%; applications for new domestic franchise agreements increased 46% year-over-year ROCKVILLE, Md., May 13, 2022-- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, reported its results today for the three months ended March 31, 2022. "Building on the record year we had in 2021, where we surpassed 2019 RevPAR and profitability levels, Choice Hotels' proven business model once again delivered impressive quarterly results, and we expect this momentum to continue as we approach the summer leisure travel season," said Patrick Pacious, pre...
