 | IN THIS
ISSUE |
|
|
|
|
FROM THE EDITORS
|
Optimism Is Still in Place Among MLIS
Attendees
By Ed Watkins
Above all, hotel owners and developers are optimists. That point hit
home to me at Lodging Hospitality's inaugural Midwest Lodging Investors
Summit last week in Chicago. And although the 500-plus attendees heard a
fair share of grim news about the current and near-term future of the
hotel business, most of them shook off the pessimism as just another
challenge to be met and solved.
The consensus among most speakers and those roaming the lobbies and
lounges of the Sheraton Chicago was that money for development and
acquisitions is still available; it's just a little tougher to find and
will be more expensive. Ten years ago, that kind of optimism may have
been a little foolhardy since the hotel industry didn't enjoy the
favorable status it has today among lenders and investors. Through a lot
of hard work and prudence, the hotel industry has proven to the money
folks that we're a business in which to invest. The risks aren't that
great, and the rewards can be substantial.
Still, as I said, money is less plentiful and more costly, even for the
best-performing developers and owners. One general session panel at MLIS
brought together three money men, who agreed that financing terms are
tougher than they have been in the past few years. Hoteliers looking for
money had better have both cash and a great story to tell, they said.
Loan-to-value ratios, once in the 80-percent range, are now typically 65
percent. Similarly, debt coverage ratios have risen from 1.20 or 1.25 to
1.35 or 1.40. For acquisitions, cap rates have gone up as well: as high
as 12 for limited-service properties in less-desirable markets to as low
as 7.5 for fullservice hotels in premium locations.
Back to Top ^
|
CHECKING IN
|
Vacation Ownership Investment Conference
The Vacation
Ownership Investment Conference is the premier industry event focusing
on successful resort financing, development, marketing, selling,
managing, and branding of vacation ownership properties. Along with
speakers who represent a cross-section of hospitality's top executives,
the conference includes panel discussions, networking opportunities, and
resort tours.
Click here for details...
|
Gaylord & Omni: Is Marriage in the
Offing?
By Ed Watkins
Private investor Robert Rowling's recent purchase of a large stake in
Gaylord Entertainment has got hotel analysts buzzing. Rowling, a Texas
billionaire who last week upped his Gaylord stake to 11.5 percent of the
company, also owns Omni Hotels, and some think he'll make a run on
Gaylord and somehow combine the two seemingly disparate brands.
Read More
Back to Top ^
Wyndham Completes Purchase of USFS
By Eric Stoessel
Wyndham Worldwide Corporation completed its purchase of U.S.
Franchise Systems, Inc. from a subsidiary of Global Hyatt Corporation
Monday for $131 million.
Read More
Back to Top ^
Stop Whining, Geller Tells MLIS
Crowd
By Ed Watkins
Some people call him a cynic or even a downer, but Laurence Geller
actually believes good times are ahead for the hotel industry. "The
problem is I don't know when they'll be here," the president and CEO of
Strategic Hotels & Resorts told a luncheon audience at this week's
Midwest Lodging Investors Summit in Chicago.
Read
More
Back to Top ^
Good News: Hotels Post Record
Profits
By Ed Watkins
This may be a tough year for the hotel industry, but 2007 was a great
one. According to new data from Smith Travel Research, the U.S. lodging
industry posted all-time highs in revenues--$139.4 billion--and
profits--$28 billion--in 2007. The results are published in STR's Hotel
Operating Statistics (HOST) Study, which was issued yesterday and covers
data from operating statements of 5,200 hotels.
Read More
Back to Top ^
|
COMING UP IN
|
|
Cityscape USA 2008 – Bridging US and Emerging Real Estate
Markets: a two day large scale exhibition and three day conference
showcasing unparalleled investment opportunities in the US and the
emerging real estate markets namely India, China, Asia, the Middle East,
Russia and Latin America. To register for the exhibition please click here or
to download the conference brochure click here.
|
The July 15 Print Edition
* Scaling Up to China
Carlo Wolff's special feature on his 10-day trip to China and the
bourgeoning hotel market that Western companies fight to get a share
of.
* Franchise Fact File
Our annual look at costs and requirements for chains and referral
groups.
* Special Focus on Guestroom Design
The new InterContinental San Francisco used a group of meeting and
travel planners to critique and eventually change its guestroom design.
Back to Top ^
|
CHECKING OUT
|
Links to Stories from the July 1
Print Issue
Not Your Father's Courtyard: Marriott's workhorse business traveler
brand is undergoing a complete and radical makeover. An exclusive
preview of the design, highlighted by the new lobby.
lhonline.com/mag/not_fathers_courtyard_0701/
Somewhere in the Middle: News and numbers to the contrary in many cases,
Midwest hoteliers are confident despite uncertain economic times.
lhonline.com/mag/somewhere_middle_0701/
Back to Top ^
|
ON THE ITINERARY
|
Upcoming Industry Events
AUGUST 9-12
Council of Hotel and Restaurant Trainers Hospitality Training
Conference, Gaylord National Resort and Convention Center, Prince
Georges County, MD. Information: www.chart.org
AUGUST 10-12
Multicultural Foodservice & Hospitality Alliance Talent Development
Summit, Fairmont Hotel, Chicago. Information: www.mfha.net
AUGUST 21
AH&LA HotelPAC Broadmoor Classic Golf Tournament, The Broadmoor,
Colorado Springs, CO. Information: www.ahla.com
AUGUST 23-25
Western Foodservice & Hospitality Expo, Los Angeles Convention Center.
Information: www.westernfoodexpola.com
AUGUST 28-31
First European conference of the International Association of Conference
Centers, Warwick Conference Centres, Coventry, United Kingdom.
Information: www.iacconline.org
SEPTEMBER 7-10
AH&LEF Golf Classic, La Quinta Resort & Club. La Quinta, CA.
Information: www.ahla.com
SEPTEMBER 9
Hotel Sales Strategy Conference, sponsored by Hospitality Sales &
Marketing Association International. Information: www.hsmai.org/Events/
SEPTEMBER 10-11
HSMAI Affordable Meetings National, Washington DC Convention Center.
Information: www.affordablemeetings.com/
SEPTEMBER 17-18
HD Boutique, Miami Beach Convention Center. Information: www.HDBoutique.com
SEPTEMBER 23-26
The Lodging Conference, Arizona Biltmore Resort & Spa, Phoenix.
Information: www.lodginglink.com
Back to Top ^
|
|
|
