marcus r. lee
Takeaways From the 2024 Boutique Hotel Investment Conference by BLLA: Reviving the Spirit of Boutique Hotels
MARCUS R. LEE | June 14, 2024
By Marcus R. Lee, Patricia Shih, and Lizzette Casarin FIAF Florence Gould Hall Theater was bustling in early June with another successful Boutique Hotel Investment Conference. Kudos to the BLLA team for executing a great event! This article presents some key takeaways from HVS attendees Patricia Shih (HVS Consulting & Valuation) and Marcus Lee (HVS Asset Management & Advisory). In the ever-evolving landscape of hospitality, the term “boutique hotel” has transformed. Once synonymous with personalized service, unique design, and intimate experiences, “boutique hotels” as a phrase has recently blended with some nation...
A New Approach to Hotel Management Fees
Marcus R. Lee | April 26, 2024
By Marcus R. Lee In the ever-evolving hospitality industry, the question of how to effectively compensate hotel operators remains crucial. While the basic premise of paying managers for their management skills holds true, the prevalent incentive fee structures may no longer adequately align with market realities, particularly for owners. Management Fees Breakdown Hotel management companies earn fees through three main avenues: In the typical hotel management agreement, hotel management companies are typically paid a base fee equal to 2.0% to 4.0% of total operating revenue—3.0% being the most common—plus an incentive, typically an...
The Rebounding San Diego Lodging Market Attracts Investor Interest
Marcus Lee | September 11, 2023
By Marcus Lee Following the COVID-19 pandemic and the significant decline in market performance, hotel demand levels in Greater San Diego[1] have rebounded. Some factors supporting the recovery included the following: Stability within the government and military sector Increased business activity, including growth in the biotechnology and life-sciences sectors, as six San Diego-based companies, including Janssen and Pfizer, worked on the production of the COVID-19 vaccine The strong rebound in leisure travel and the popularity of the region as a tourist destination A quick rebound in passenger traffic at San Diego Internat...
Recovery Outlook for the San Diego Lodging Market
Marcus Lee | May 5, 2022
By Marcus R. Lee Amid a worldwide pandemic, RevPAR for Greater San Diego fell approximately 50.0% in 2020 from 2019 levels.[1] This compares to a 47.5% drop for the United States as a whole and a 57.6% drop for the top 25 markets in the nation, according to STR. By year-end 2021, the greater San Diego market’s RevPAR had recovered to just under 80.0% of the pre-COVID performance. This rebound is less than the 83.0% recovery experienced nationally, but stronger than the 67.0% recovery of the top 25 markets. On June 15, 2021, the State of California retired the majority of its COVID-19 restrictions and entered a statewide reopening phas...
Market Pulse: Orange County Beaches, CA
Marcus R, Lee | September 27, 2018
By Marcus R. Lee, Steven Kim, Eric Yiankes Whether it's manicured beach towns or celebrated theme parks, Orange County stands out as one of California's most iconic destinations. Located about an hour south of Downtown LA and two hours north of San Diego, Orange County remains a novelty for visitors and locals alike. Orange County relies on tourism, state and local government activity, and renowned institutions of higher education for its economic livelihood. The Newport Beach, Huntington Beach, and Costa Mesa hotel submarkets have experienced varied activity over the last three years, with transactions, renovations, and re-brandings, a...
HVS Market Pulse: Annapolis, MD
Marcus R. Lee | April 26, 2018
By Marcus R. Lee, Chelsey Leffet Annapolis, Maryland's capital, is a historic seaport located 30 miles south of Baltimore and 30 miles northeast of Washington, D.C. Annapolis relies on tourism, state and local government activity, and renowned institutions of higher education for its economic livelihood. The Annapolis hotel market has been very stable over the last five years, with no proposed hotel development on the horizon. There have, however, been two hotel transactions in the last year, indicating the attractiveness and economic viability of this high-barrier-to-entry market to investors. Average rates for the city's hotels have r...