Hotel Mixed Use development gets a big boost from Barry Sternlicht's "1" Hotel and Residences brand and Waldorf=Astoria Residences in Las Vegas
By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
19 October 2006
Hotel mixed use developers should pay attention to two lead items today which I noticed in Hotel-Online and Hotel Business. Barry Sternlicht's Starwood Capital has announced 5 new hotel mixed-use developments -- launching a new hotel brand called "1" Hotel and Residences. At the same time, Hilton announced the Waldorf=Astoria branded Residences for its big hotel mixed-use project in Las Vegas. What are these developments about and what potential significance do they have?
"1" Hotel and Residences -- A new brand for hotel mixed-use development
On October 18, 2006, Barry Sternlicht's Starwood Capital Group announced the launching of "1" Hotel and Residences. The press release emphasizes that this will be the first luxury, eco-friendly global hotel brand. The concept promises to combine green construction and operating principles with impeccable service and luxurious comfort. "1" will demonstrate that green principles can coexist and enhance a luxury hospitality experience and healthy residential lifestyle.
The initial four properties in the United States will all be new construction. The first hotel will be the "1" Hotel and Residences Seattle expected to open in late 2008. Following Seattle, openings are planned for Mammoth Mountain, California, Scottsdale, Arizona, Ft. Lauderdale, Florida, and Paris, France. (Paris will be a renovation of a historic property). Within the next 12 months, Sternlicht expects that "1" will enter New York, Los Angeles, Washington, D.C. and other major urban markets, as well as premier resort destinations. The aim is to have 15 hotels signed or under construction within 24 months. The five hotels are owned by controlled affiliates of Starwood Capital Group Global, LLC.
What does this mean?
To us, this announcement continues to emphasize the importance of hotel-enhanced mixed-use. It shows another very astute financial, hotel and industry visionary seeing the value and future of creating lifestyle mixed-use projects ignited by the spark of high-quality, unique hotel experiences. "1" promises to appeal to those of us seeking luxury, environmentally friendly development and operation, innovative restaurant and food experiences with premier local chefs, and world-class spas featuring "unique treatments and programs for the revitalization of body and soul."
Does this seem reminiscent of the lifestyle, hotel-enhanced mixed use projects that are becoming so dominant in the industry? Like the projects I have mentioned recently with Andre Agassi and Shaquille O'Neal, Paul Allen and Donald Trump? Like the last 80 hotel-enhanced mixed-use project that our Global Hospitality Group's hotel attorneys have guided?
I think that it is more than a little remarkable that it is becoming difficult to look at any of the hotel trades, or hotel news services (such as hotel-online.com or hotelbusiness.com) and NOT find a news item that talks about hotel mixed-use - and typically with some significant "lifestyle" appeal.
I also think it is interesting that increasingly the lines of "condo hotels" are morphing into hotel condos or, more accurately, true hotel mixed-use.
Hilton's Waldorf=Astoria Residences project in Las Vegas illustrates my point, but more on that in the next blog!
________________________
Our Perspective. We represent developers, owners and lenders. We have helped our clients as business and legal advisors on more than $50 billion of hotel transactions, involving more than 1,000 properties all over the world. For more information, please contact Jim Butler at jbutler@jmbm.com or 310.201.3526.
Jim Butler is one of the top hotel lawyers in the world. GOOGLE "hotel lawyer" or "hotel mixed-use" or "condo hotel lawyer" and you will see why.
Jim devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders. Jim leads JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $50 billion of hotel transactional experience, involving more than 1,000 properties located around the globe.
Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them. They are a major gateway of hotel finance, facilitating the flow of capital with their legal skill, hospitality industry knowledge and ability to find the right "fit" for all parts of the capital stack. Because they are part of the very fabric of the hotel industry, they are able to help clients identify key business goals, assemble the right team, strategize the approach to optimize value and then get the deal done.
Jim is frequently quoted as an expert on hotel issues by national and industry publications such as The New York Times, The Wall Street Journal, Los Angeles Times, Forbes, BusinessWeek, and Hotel Business. A frequent author and speaker, Jim's books, articles and many expert panel presentations cover topics reflecting his practice, including hotel and hotel-mixed use investment and development, negotiating, re-negotiating or terminating hotel management agreements, acquisition and sale of hospitality properties, hotel finance, complex joint venture and entity structure matters, workouts, as well as many operating and strategic issues.
Jim Butler is a Founding Partner of Jeffer, Mangels, Butler & Marmaro LLP and he is Chairman of the firm's Global Hospitality Group®. If you would like to discuss any hospitality or condo hotel matters, Jim would like to hear from you. Contact him at jbutler@jmbm.com or 310.201.3526. For his views on current industry issues, visit www.HotelLawBlog.com.
