Hotel Law Blog

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
31 January 2007

Hotel Lawyer on what the top names in the industry are saying now. In my recent blog entries, we have looked at how every hospitality company could be in play -- from InterContinental Hotels to Marriott, Hilton and Starwood, the most interesting features of 2006, explored financing hotel projects in 2007, and talked about the explosion of international hotel investment -- particularly in places like Mexico, Costa Rica, the Caribbean, China, India, and Europe.

But last week, I attended the Los Angeles hotel investment conference (ALIS) and promised to report on the pulse of the hotel industry. So here is the first followup on that promise -- and the first in a series of reports on www.HotelLawyerBlog.com about what's going on in the industry. This report is my collection of notable quotes I captured from hotel industry thought leaders at the ALIS Conference.

Continue reading "Hotel Lawyer -- Notable quotables from hotel industry thought leaders 2007" »

Posted In: Outlook and Trends

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
29 January 2007

Hotel lawyer on private equity investments in the hotel industry. In my most recent article, I talked about two deals that could profoundly affect the very makeup and direction of the hotel industry. (See, "Two deals that may change the lodging world forever"). Of course, these two transactions are the leveraged buyouts of Equity Office Properties (EOP) and CNL Hotels & Resorts (CHL).

With recent takeover rumors circling InterContinental Hotels Group (IHG), I have recently written on www.HotelLawBlog.com about what these rumors mean. (See, "What do the InterContinental takeover rumors mean? Why IHG? Why now? Who will win the bid?") Some have been saying recently that even Hilton is now on the block. Are the CNL and EOP deals the harbinger for the entire hotel industry -- that every major hotel company could be in play?

Here's why size may no longer impose any limit on acquisitions. . . and why Marriott, Hilton, Starwood, and all the other hotel companies could be up for grabs.

Continue reading "Size no longer matters . . . at least in the hotel industry. Is the entire hotel industry now in play? What the experts have to say." »

Posted In: Hotel Finance − Hotel Debt & Hotel Equity , Outlook and Trends

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
28 January 2007

Hotel Lawyer on hotel finance. History is being made. The biggest leveraged buy out ever keeps getting bigger. Sam Zell has orchestrated an auction for his Equity Office Properties. And the latest bid from the Blackstone Group is $54 per share, bringing the deal value to $38.3 billion and topping the prior bid from Vornado.

At the same time, one of the biggest hotel deals in history -- perhaps small change compared to the Equity Office Properties deal but very significant in its own way -- has been announced with the $6.6 billion acquisition of CNL Hotels & Resorts by Morgan Stanley and the contemporaneous spin off of $2.4 billion of hotel assets to Ashford Hospitality Trust Inc.

How could these two transactions affect the lodging world, and what is the impact beyond the immediate transactions themselves?

Continue reading "Two deals that may change the lodging world forever." »

Posted In: Hotel Finance − Hotel Debt & Hotel Equity , Outlook and Trends

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
22 January 2007

Hotel Lawyer Los Angeles Hotel Investment Conference. The new year has opened with a bang. ALIS (The Americas Lodging Investment Summit) is in session, claiming an all time hotel investment conference record or 2,400+ attendees.

The good times are still here and poised to roll for at least a few more years. My years of experience in the industry convince me that there is a direct correlation between the number of people attending hotel conferences and the current industry trends. So we are at a record pace. Ask the brokers, bankers, lawyers, operators or developers. If you aren't busy now, and you are in the hotel industry, it is time to consider a career change.

In the next few days, I will give you a sense of the industry's pulse from the ALIS Conference . . .

Continue reading "Hotel Lawyer -- Los Angeles Hotel Investment Conference. " »

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
8 January 2007

Hospitality Lawyer on international hotel investments. In a number of recent postings on www.HotelLawBlog.com, I have focused on the attractiveness of international hotel investments and some of the big names pouring investment overseas. Some of the hot markets include Mexico, Costa Rica, the Caribbean, Spain, Italy, London, Saudi Arabia, Dubai, China and India. In Why we're building hotels in India like crazy, I focused entirely on India, an explosive market that has often been overshadowed by opportunities in China. In announcing plans for Starwood Capital to invest a half billion in India alone, Barry Sternlicht says that there is so much demand that he is targeting an average annual return of 20% on investments in India!

With all the exciting potential for hotel development in these booming markets, it is tempting for developers and investors to rush in to "scoop up the profits". But before they do, it would be wise to remember that risk is usually commensurate with reward. At the very least, they should ask: "What is the best way to make successful foreign hotel investments?" Here are a few thoughts from www.HotelLawBlog.com . . .

Continue reading "Hospitality Lawyer -- The plays to make successful international hotel investments" »

Posted In: International Hotel Investment, Outlook and Trends

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
7 January 2007

Hospitality Lawyer on hotel finance in 2007. We recently featured our annual expert panel talking about "How will you finance your hotel project in 2007?" Today, I am delighted to present the thoughts of Patrick O'Neal, one of the industry's' real lender icons, whether in workouts or CMBS loan production. Patrick has been a great friend and client for more years that either of us probably care to count, but I have always found Patrick's thoughts, to be unnervingly candid, full of humor and remarkably "spot on" in terms of their accuracy. PNC Real Estate Finance and the hotel world are very lucky to have him! So what does Patrick have to add to the perspectives we have just enjoyed?

For all of our www.HotelLawBlog.com readers, and those who would like to meet Patrick -- and our other leading hotel industry capital providers -- you will want to join us for the 17th annual Meet the Money® conference on May 3, 2007 in Los Angeles. Sign up now.

Continue reading "How will you finance your hotel project in 2007? Part II" »

Posted In: Hotel Finance − Hotel Debt & Hotel Equity , Meet the Money®, Outlook and Trends

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
4 January 2007

Hospitality Lawyer on hotel finance in 2007. Debt and equity financing of hotels and hotel mixed-use projects is critical and can be very challenging. Our clients take hotel financing seriously, and so do we. That's why we host the annual JMBM Industry Outlook Roundtable every January and our Meet the Money® conference every May.

With the legacy of Meet the Money® propelling us forward, I was delighted to join with leading hotel industry experts for JMBM's "Outlook 2007, Hospitality Roundtable." They reflected on a very interesting year just passed and pulled out their crystal balls to see what would happen in 2007. I am pleased to share their take on what's going on with hotel finance with the readers of www.HotelLawBlog.com. Some of it might surprise you.

Continue reading "Hospitality Lawyer -- How will you finance your hotel project in 2007? Part I " »

Posted In: Hotel Finance − Hotel Debt & Hotel Equity , Meet the Money®, Outlook and Trends

By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
3 January 2007

Hotel Lawyer -- Top Picks of 2006. Yes, 2006 has been a record year for many in the hospitality industry, and for the hotel lawyers at Jeffer, Mangels, Butler & Marmaro LLP. As we have already given our Outlook for 2007, we thought it might be interesting to look back on our Top Pick articles from 2006 from www.HotelLawBlog.com.

The Top Picks articles are organized by the major TOPICS on the Blog. We generally tried to select just the top two or three articles for each TOPIC. It was a major struggle to decide where to make the cutoff. If you want more information on a particular TOPIC, you can go to www.HotelLawBlog.com, and search for all articles on that TOPIC. To do that, just scroll down the right hand side, and below the (free) subscription and RSS Feed buttons is the Browse search engine that enables you to sort by TOPIC (or date, or key words, etc.).

Here they are . . .

Continue reading "Hotel Lawyer -- Top Picks for 2006" »

Posted In: ADA, Condo Hotels, Disasters, Hotel Management Agreements, Hotel Mixed-Use, International Hotel Investment, Labor & Employment, Land Use & Entitlements, Outlook and Trends, Workouts, Bankruptcies & Receiverships