Category Archives: Investment

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Intelligent Optimism Rules

Optimism is a powerful force, and it can drive us to undertake all sorts of endeavors, transactions, deals and challenges.  It is not limitless or intended to lead us to be blind or foolish to challenges that may lurk around the bend.  A better model might be optimism tempered by care and intelligence.   We have … Continue Reading

Staying the Course in 2013

A number of reports are now out to give us a snapshot of our industry and some key economic indicators.  [Click here for a nicely done report from Pyramid Hotel Group.]  In the ‘Outlook’ portion of the Pyramid report, the observation that 2013 is likely to be a continuation of what we are now experiencing … Continue Reading

New York, New York! The Upcycle in the Hotel Space is Melting Away Those Little Town Blues

The upcycle in the hotel space is clearly underway with potential for epic appreciation. The national hotel occupancy rate is approaching peak levels again. And this, coupled with record demand for U.S. hotel accommodations and a muted level of new supply, positions the industry to increase average daily rates (ADR) above inflationary levels. The inflation … Continue Reading

The Cap-Ex Dilemma

As owners and operators tried to maneuver their way through the last few years of economic woes, plans for significant capital expenditures to hotel properties moved to the back burner.  This was not done in secret and, for the most part, branded operators permitted many capital projects to be deferred.  We hear and read that the … Continue Reading

Hotel Sector Not Out of the Woods Yet.

The recent iGlobal Forum Global Hospitality & Lodging Investment Summit 2011 was well attended, and the panelists were honest in their assessments of the lodging sector’s near-term future. There are some signs of improvement, but our assessment as audience members is that calling it a “recovery” is premature. There is still more talk (hope) of … Continue Reading

Buyers and Sellers and Brokers — Oh My!

At the North America Hotel & Tourism Investment Conference (NATHIC), held in Washington, D.C., November 1-2, there was a “buzz” in the crowd as to where the hospitality industry is heading in the next few years. As the moderator of the session on “Buy, hold, sell, build – what is your best strategy in today’s … Continue Reading

Money, Money, Money…Money

We are often asked about sources and criteria for hotel investment, both on the debt side and the equity side.  Although we are neither investors nor bankers ourselves, we do see and hear plenty about this subject, and most of it expresses the many challenges in the capital markets in general and for hotels in … Continue Reading

Is this a Security?

The recent Salameh case provides a good reminder of what a properly structured condo hotel project might look like and some of the “do’s” and “don’ts” of that business model.  If the sale is classified as the sale of a security rather than the sale of an interest in real property, then the sale is subject to … Continue Reading

Something Tells Me I’m Into Something Good! (With thanks to Herman’s Hermits’ 1964 hit).

One of the stunning observations of the LW Hospitality Advisors YTD Q2 (Mid-Year) 2011 Select Major U.S. Hotel Sales Survey is the number of and diversity of the buyers. Oh sure, we know that Pebblebrook and RLJ will be on the list, but don’t stop there. Examine the other buyers and look hard at what they are buying. The … Continue Reading
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