September 30, 2007

Hotel Lawyer: Why the SEC may make you go GREEN

by the JMBM Global Hospitality Group®

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
30 September 2007


Hotel Lawyer on why the SEC may soon be pushing the GREEN Bandwagon. Technically, most SEC disclosure guidelines or rules only require "disclosure." They do not impose substantive regulation. But SEC guidelines tend to set the disclosure standards for state laws, and establish industry standards for fair disclosure. And frequently the bright spotlight of disclosure focuses such intense attention on particular issues, that it changes behavior as effectively as a substantive regulation. That might well become the case with "GREEN".

Here's what is happening . . .

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September 27, 2007

Hotel Lawyer: Return to "Normalcy" or "Irrational Pessimism"?

by the JMBM Global Hospitality Group®

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
27 September 2007

Hotel Lawyer at the Phoenix Lodging Conference. The 13th edition of The Lodging Conference in Phoenix is very unique. For the first time in many years, there does NOT seem to be an overwhelming consensus about what is happening -- at least as to the credit markets, and that is the big news here. Lodging fundamentals continue very strong, although occupancy may slip a small amount in 2008, and RevPAR growth will likely slow down (but it will continue to grow).

For many years there has been a clear and prevalent industry "mood" for hotel industry conferences (see for example, last year's reports on www.HotelLawBlog.com on The Lodging Conference ("Ebullient Foreboding"), The January 2007 ALIS Conference, or even the NYU Conference in June 2007 ("forecast of 'sunny skies' for the hotel industry.")

But this week's conference has a fair number of knowledgeable people sounding like Chicken Little warning about the sky falling, and others claiming that we are just returning to a more normal scenario. The only clear consensus is that -- for at least a while -- this will NOT be "business as usual" for credit markets. Interest rates will be higher -- at least 100 to 150 basis points. Loan to value (LTV) and debt service coverage (DSC) will be tougher -- LTVs are likely to be more in the 65 - 75% range, and DSCs of 1.0 will more likely be 1.2 to 1.4. Construction lending will be very difficult to find in the near future, and underwriting will likely be much stricter. Here is what some industry leaders have to say.

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September 26, 2007

Hotel Lawyer in Phoenix. State of the Lodging Industry: Is the party over? Or is this just the intermission?

by the JMBM Global Hospitality Group®

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By Jim Butler, Hotel Lawyer | Author of www.HotelLawBlog.com
26 September 2007

Hotel Lawyer at the Phoenix Lodging Conference. Morris Lasky's Phoenix Lodging Conference is always one of my favorite hotel gatherings each year, and last night the 13th edition of this event got underway with more than 1,400 people registered -- up from 1,200 last year.

There is something about the beautiful setting at the Biltmore, the casual atmosphere (with many in shorts -- or at least chinos -- and short sleeve shirts) in the baking Arizona heat that fosters a comfortable, no-nonsense exchange of thoughts. But I do miss the early days when Morris "capped" attendance at 400, and you actually were able to move around and see all the people you wanted to in a more intimate environment. That is one unique compelling advantage that The Hotel Developers Conference™ and Meet the Money® still offer! Oh well, enough nostalgia. Here is my first take on mood of the Conference.

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