pips
The Current Impact of Brand PIP Requirements on Hotel Sales
Eric Guerrero | November 22, 2019
By Eric Guerrero The most consistent issue HVS Brokerage & Advisory has encountered during transactions is whether a group is budgeting sufficient capital for prospective asset acquisitions that require PIP renovations. An incorrect estimate means buyer groups must increase their capitalizations or request a price reduction on a dollar-for-dollar basis relative to their cost increases. This ultimately changes many metrics late in acquisition processes and lowers IRRs because any extra capital is drawn entirely from equity and not a blend of equity and debt. Recent observations are detailed below. The lesson is that accurate PIP estimat...
Contractor’s Perspective on Renovating Chain Hotels Versus Boutique Hotels
Cicero's Development Corporation | August 9, 2018
PLAINFIELD, IL, AUGUST 9, 2018 -- With a booming economy, Americans are spending increasingly more time traveling. Luckily, when it comes to hotels, they have more options than ever, from the tried-and-true branding of large chains to smaller boutique hotels aiming to provide unique, one-of-a-kind experiences. Both options work, but offer distinctly contrasting atmospheres. These contrasts pose challenges to renovation contractors. Construction procedures and design goals differ greatly between chain and boutique hotels. Boutiques have become synonymous with the idea of quirky cool while major chains rely upon uniform, pre-approved Prop...
