hotel investments & ownership
Meet the Money 2017 Key Takeaways
Shannon L. Sampson | May 24, 2017
By Shannon L. Sampson , Benjamin A. Levin , Aaron Solaimani The 2017 Meet the Money National Hotel Finance & Investment Conference, held May 8–10 in Los Angeles, brought together a strong showing of hotel owners, investors, lenders, brokers, consultants, franchisors, and brand representatives. Top U.S. hospitality executives served on panel discussions that addressed an array of topics related to hotel ownership, development, and financing, as well as the recent proliferation of new hotel brands and the impact of the global economy on the industry. True to this year's theme, "Opportunity or Peril: Finding the Right Key to the ...
Purchase Price Allocations for Hospitality Assets
Tim Sauer | May 10, 2017
By Tim Sauer I recently attended a presentation where the presenter used a hamburger as an analogy for a cost-segregation study. While most people just see a hamburger, he sees a beef patty, lettuce, tomato, cheese, and a bun. That is to say, he doesn't see a single piece of real estate, but numerous smaller assets that comprise the larger asset. The same can be said of a purchase price allocation (PPA). Introduction to Purchase Price Allocations As the name implies, the objective of a purchase price allocation is to allocate the purchase price of an asset to its component parts. Unlike a cost-segregation study, which allocates cost for...
HVS Perspectives on the All-Inclusive Product
Kristina M. D'Amico | June 1, 2015
By Kristina M. D'Amico Today's rising popularity of all-inclusive resorts is directly correlated to the value proposition for the guest. The resorts that offer customized products and services with personalized experiences are beneficial to both the owner and the customer. It is true that the long-held perception of the all-inclusive resort was fraught with thoughts of average quality accommodations, long buffet lines, and mediocre food. However, the industry has recently trended to a far more upper-upscale and even luxury vacation experience offered by the all-inclusive segment, with prices remaining extremely reasonable for the luxury...
Fixed Expenses Aren’t Really Fixed!
Kirby D. Payne | May 18, 2015
By Kirby D. Payne, May 15, 2015 In most hotel P&Ls, usually towards the bottom, is a heading called Non-Operating Income and Expense, formerly known as Fixed Expenses. Few costs are uncontrollable in a hotel. There are simply some expenses which take longer to reduce than others! Somewhere on most hotel financial statements, usually towards the bottom, is a major heading called Non-Operating Income and Expense. Before the 11th Edition of the Uniform System it was known as Fixed Expenses. I firmly believe that General Managers and Comptrollers created the former title for two reasons: Either owners handled the items bundled in there...
U.S. Hotel Supply Growth Still in Check with Demand
Susan Furbay | May 12, 2015
by Susan Furbay MAY 2015 Years of rising average daily rates and demand, among other factors, have made the ground fertile for new hotel supply. How will the growing pipeline of new hotels impact hotel markets in the near term? The U.S. hotel industry has reaped sizable benefits from the remarkable growth in the U.S. since the Great Recession. Nationwide lodging demand has been up year after year. RevPAR growth in 2014 was one of the highest on record, and demand across all chain scales shows every sign of accelerating in 2015. This is particularly true for urban gateway markets, where high demand for rooms allows owners to raise rate...
