Hotel Development

May 13, 2013

JMBM's Meet the Money® in the Wall Street Journal. Conference panelists discuss financing new hotel construction.

by the JMBM Global Hospitality Group®

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
13 May 2013

Meet the Money® made the news again this year, with an article on the Wall Street Journal "Developments" blog. Written by Kris Hudson, the article discusses the return of hotel construction, what types of financing are available, and which markets will be able to support new hotels.

Meet the Money® speakers Marty Collins of Gatehouse Capital, Anne Hampton of Wells Fargo Bank Hospitality Finance, Alison Cumberland and Abid Gilani of Marriott International, Kevin Mahoney of Stonebridge Companies and Paul Novak at Whitman Peterson Capital Partners were quoted in the story.

Conference speakers highlighted the CMBS market, gateway city locations, and upper-midscale hotels developments as factors that might help push construction financing in 2013, although some noted that lending standards are still strict and that many markets may not have a demand for more rooms.

If you haven't read the article yet, you can find it here: Lenders Checking In? Hoteliers Say Construction Lending Is Reviving.

You can more great information from Meet the Money® 2013 at www.HotelLawyer.com on our RESOURCE CENTER, under "Hotel Industry Presentations."

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May 9, 2013

EB-5 Alert: California moves to make EB-5 financing more competitive in the state -- changes rules on TEA designation

by the JMBM Global Hospitality Group®

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
9 May 2013

Hotel Lawyers on EB-5 issues.The California governor's office has just taken action that will make California much more competitive with New York and other states in seeking foreign investment capital to create jobs and facilitate construction financing for hotels and other projects.

Here is the latest from Catherine Holmes and Victor Shum, two of our EB-5 experts who:

  • Advise foreign investors on how to make sound investments in the US
  • Help developers structure their projects and investment opportunities to fit EB-5 and foreign investment profiles
  • Advise investors on how to form EB-5 regional centers and structure deals with developers and compliance matters

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March 15, 2013

The 10 biggest mistakes shopping centers make when adding a hotel

by the JMBM Global Hospitality Group®

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
15 March 2013

Great opportunity . . . and danger . . . await shopping center owners who seek to add hotels to their shopping centers, malls and retail centers.

An interesting confluence of factors has ignited a wave of hotel development -- adding hotels to shopping centers, malls and retail centers. This trend is already underway and will be headline news for the next couple of years.

There are compelling synergies for both the shopping center and the hotel. These have been thoroughly documented by major players. One major shopping center owner performed a multi-year study on its 200+ properties and found that the right hotel can boost gross sales at shopping centers 20% to 40%. And the associated hotels also get a boost in Revenue Per Available Room (RevPAR) of 30% to 40% over hotels in their competitive set.

If you need more information on the basics -- why people are adding hotels to shopping centers and malls -- look at the articles posted on www.HotelLawyer.com. From the home page, scroll down and look on the right-hand side for under "Hotel Development" or go to www.hotellaw.jmbm.com/hotel_development.

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March 5, 2013

ULI presentations available on adding a hotel to a shopping center or mall

by the JMBM Global Hospitality Group®

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
5 March 2013

Hotel Lawyer on adding a hotel to shopping centers and malls.

The ULI program held on February 20, 2013 in JMBM's Los Angeles offices was a great success. The program title says it all -- "Back to the Future: The Renaissance of Hotel-Retail Mixed-Use."

As one might expect for a ULI event on a timely topic like this, there was a capacity crowd, sharing of the latest "technology" in adding hotels to shopping centers, and a veteran team of presenters.

Jim Butler, Chairman of JMBM's Global Hospitality Group®, moderated the panel, which included:

  • Guy Maisnik, Partner and Vice Chairman of JMBM's Global Hospitality Group®

  • Steve Mermell, Assistant City Manager, City of Pasadena

  • Bruce Baltin, Senior Vice President, PKF Consulting

  • Les Melcher, SVP - Business Development, Woodbine Development Corporation
  • The panel looked at why many shopping center owners and developers are adding hotels to their projects, and commented on some tips and traps along the way. There were some great case studies that the panelists worked on.

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    January 28, 2013

    Hotel-retail mixed-use: A wave of new hotel development is beginning to swell

    by the JMBM Global Hospitality Group®

    By Jim Butler and the Global Hospitality Group®
    Hotel Lawyers | Authors of www.HotelLawBlog.com
    28 January 2013

    We are at the beginning of what looks to be a renaissance of "hotel-retail mixed-use" development. Shopping center developers nationwide are exploring the feasibility of adding a hotels to existing retail properties, while others are already implementing plans that have been in the pipeline. Some are adding hotels to the mix for new ground up development. Fueling this trend is research showing that both retailers and hoteliers make huge gains in revenue when they come together in the "hotel-retail mixed-use" environment.

    My partner, Guy Maisnik, and I recently wrote an article on this subject for Hotel Business and it is reprinted below, with permission.

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    December 17, 2012

    Hotel-Retail mixed-use: hospitality industry trend for 2013.

    by the JMBM Global Hospitality Group®

    By Jim Butler and the Global Hospitality Group®
    Hotel Lawyers | Authors of www.HotelLawBlog.com
    17 December 2012

    A wave of "hotel-retail mixed-use" is coming. It may mark the rebirth of bricks and mortar.

    Put on the back burner by the Great Recession, the hotel-retail mixed-use development is back in play. Virtually every major shopping center and mall owner is exploring whether it makes sense to add a hotel component to existing projects, and are checking feasibility for new ones. Some new hotel-retail projects are underway, and many others are in the planning stage.
    What's behind this trend is a simple and powerful driver: The right hotel added to the right project can boost retail sales by 20-40%! And the retail shopping can boost hotel RevPAR by a comparable amount over the competitive set.

    My partner, Guy Maisnik, and I were asked by Globe St to write a guest column for their publication on the hotel-retail trend. It is reprinted below, with permission.

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    June 5, 2012

    How to finance hotel development in 2012 . . . Alternate financing for new hotel construction in a brave new world

    by the JMBM Global Hospitality Group®

    By Jim Butler and the Global Hospitality Group®
    Hotel Lawyers | Authors of www.HotelLawBlog.com
    5 June 2012

    Hotel Lawyer with some good news for hotel developers on financing new construction projects.

    As the speakers at NYU are telling us, hotel development is happening again! And the pace is picking up. To be sure, only the best projects will get financing with great locations, experienced developers and sound fundamentals. But even then, financing can remain a challenge.

    How are the successful developers getting their projects financed? There are probably a lot of answers to that question, however, it is clear that many new projects are tapping alternative sources of financing.

    Here is an article about this that recently appeared in Hotel Business, written by my partner Catherine Holmes. It is a good read.

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    May 22, 2012

    Successful joint ventures for hotel development, acquisition and financing

    by the JMBM Global Hospitality Group®

    By Jim Butler and the Global Hospitality Group®
    Hotel Lawyers | Authors of www.HotelLawBlog.com
    22 May 2012

    At JMBM's recent hotel finance conference in Los Angeles, a panel of experts talked about how well joint ventures are working to provide financing for hotel development and acquisitions.

    The hotel joint venture experts

    The Joint Venture Panel from Meet the Money® 2012 featured 5 veteran hotel investors and operating partners, and was moderated by Guy Maisnik, hotel lawyer and Vice Chair of JMBM's Global Hospitality Group®. The panelists were:

    Picture of Guy Maisnik Guy Maisnik, Vice Chair, JMBM's Global Hospitality Group® works extensively on hotel joint ventures and financings, as well as acquisitions.

    • Mark Burden, CEO, Rim Hospitality
    • Lamont Meek, SVP and COO, Circa Capital
    • Rick Frank, SVP Hospitality, Behringer Harvard
    • Jonathan Martin, VP, AEW Capital Management
    • Kam Babaoff, Managing Director, Ensemble Hotel Partners

    Each of these participants has a long history of investing in and operating hotels, and they represent the spectrum of views currently prevailing in the industry. While each has been successful, each has taken a different road to achieve success. The individual strategies and approaches of each stands out, as does the talent and vision necessary to navigate some of the toughest years in the hotel industry.

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    March 14, 2012

    Financing new hotel development today: Finding the right "regional center" and negotiating terms for your EB-5 financing

    by the JMBM Global Hospitality Group®

    By Jim Butler and the Global Hospitality Group®
    Hotel Lawyers | Authors of www.HotelLawBlog.com
    14 March 2012

    New hotel development is back! And there is something you should know about how hotel development is being financed. It is not easy, but developers are getting new hotel developments financed. One important capital source is foreign investors using the EB-5 immigration visa investment.

    We have advised clients on more than 40 EB-5 projects, and along the way we have written quite bit about EB-5 financing for hotel projects. We aren't going to repeat the ground covered earlier, but you will find references at the end of this article if you want to read our other materials on this subject.

    Today's focus is on unlocking EB-5 capital for hotel development with the right "regional center" and then what you need to know about negotiating the terms of your EB-5 financing deal. Catherine Holmes and Victor Shum share their thoughts.

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    March 13, 2012

    5 Things to remember when buying hotel notes

    by the JMBM Global Hospitality Group®

    By Jim Butler and the Global Hospitality Group®
    Hotel Lawyers | Authors of www.HotelLawBlog.com
    13 March 2012

    Hotel investment through buying hotel notes As the economy and hotel fundamentals continue to improve, hotel note purchase opportunities will be one of the most attractive hotel investments for savvy investors.

    My partner and Vice Chair of our Global Hospitality Group®, Guy Maisnik, has been working a lot on note purchases lately, and I asked him to share some insights with us, which he graciously consented to do with his article today.

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