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Hospitality Lawyer Insights from MTM: #12. What’s left for owners today?

26 May 2009

Hospitality Lawyer Insights from Meet the Money® 2009: The hospitality lawyers of JMBM’s Global Hospitality Group® have presented an annual hotel conference for 19 years. On May 5-7, 2009 in Los Angeles, California, nearly 400 industry leaders gathered at the Sheraton LAX for Meet the Money® 2009.


Presentations from Hotel Industry thought leaders by JMBM’s hospitality lawyers

The PowerPoint presentations from a number of industry leaders at Meet the Money® 2009 are listed with hyperlinks at JEWELS from Meet the Money® 2009 — the “best ever” hotel conference.

Commentary and observations from the hospitality lawyers of JMBM and other industry experts on some of the critical industry issues are available at Hospitality Lawyer Insights.

Here is the latest in the Hospitality Lawyer Insights series on some of the most critical issues of our day.

#12. What’s left for owners today?

Bernard N. Siegel:

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Bernard N. Siegel
Principal
KSL Capital Partners, LLC
(720) 284-6440
bernard.siegel@kslcapital.com



“Any deal that closed in ’06, ’07, or ’08 is basically underwater now.”

Robert B. Stiles:

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Robert B. Stiles
Executive Vice President & Principal
Cushman & Wakefield Sonnenblick Goldman
(415) 658-3601
robert.stiles@cushwake.com



“So if you have equity, then it is gone.”

Troy Miller:

Troy Miller
Managing Director
Centerline Capital Group
949-221-6683
tmiller@centerline.com

“A study by Deutsche Bank indicates that an for investment made in the last 5 years, given 70% LTV, and dropping NOI — the loan cannot be refinanced. There is a train wreck that is going to happen.”

Thomas Corcoran:

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Thomas Corcoran
Chairman of the Board
Felcor Lodging Trust Incorporated
972-444-4901
tcorcoran@felcor.com



“I haven’t seen these much negative RevPAR, for such a prolonged period of time. I don’t see when it will turn. Until you can turn that around, it will be hard to create value.”

Troy Miller:

“There is no source of refinancing at terms that work. 75% of loans are not financeable today, even if government were to provide financing.”

Michael Depatie:

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Michael Depatie
President and CEO
Kimpton Hotel & Restaurant Group, LLC
415-955-5426
michael.depatie@kimptongroup.com



“If you had a hotel in 2008, it’s down 30 – 50% in 2009.”

Kevin Mahoney:

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Kevin Mahoney
CEO
Stonebridge Companies
303-785-3100
kmahoney@stonebridgecompanies.com



“The franchise community is under siege. Some brands are working with their owners. If owners continue to take care of their properties and their customers, good brands will help them get through these hard times.”

Suzanne Mellen:

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Suzanne R. Mellen CRE MAI
Managing Director
HVS International
(415) 268-0351
smellen@hvs.com



“On average, a hotel is losing 40 percent of profitability.”

This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We’ve done more than $60 billion of hotel transactions and have developed innovative solutions to unlock value from troubled hotel transactions. Who’s your hotel lawyer?

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Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 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 a founding partner of JMBM and Chairman of its Global Hospitality Group®. Jim is one of the top hospitality attorneys in the world. GOOGLE “hotel lawyer” and you will see why.

JMBM’s troubled asset team has handled more than 1,000 receiverships and many complex insolvency issues. But Jim and his team are more than “just” great hotel lawyers. They are also hospitality consultants and business advisors. For example, they have developed some unique proprietary approaches to unlock value in underwater hotels that can benefit lenders, borrowers and investors. (GOOGLE “JMBM SAVE program”.)