hotel property insurance
Ensuring Your Deal Closes: Three Areas to Focus On
Eric Guerrero | October 31, 2024
Both buyers and sellers want a seamless hotel transaction closing, but a variety of potential pitfalls can slow a deal’s closing. Below, we review three key areas of a hotel sale that may present obstacles: financing, PIP costs, and property insurance premiums. We also provide recommendations that help you to anticipate and prevent issues. Financing Securing debt at a reasonable market rate with good terms is still one of largest obstacles in closing a deal. In order to obtain a good loan, a buyer must have a strong balance sheet with a credible global cash-flow and solid track record of success in owning and operating other hotels. Bu...
What Hoteliers Need to Know About Rising Insurance Costs: Leave No Stone Unturned
Terri Stanganelli | September 12, 2023
By Terri Stanganelli Hotel operators can combat rising rates with audits, accountability, and awareness of post-pandemic challenges Just as ensuring hotel safety requires leaving no asset or process unexamined, the quest for affordable property coverage requires casting a wide net. Property insurance is probably the biggest insurance-related concern for all hotel operators this year. It is a very difficult market. Brokers tell us they have not seen a property market like this in 30 years. Thanks largely to an active 2022 hurricane season, reinsurance rates for 2023 have risen 25% to 30%. Carriers are passing on those increases, in th...
