Recently, a Chinese government delegation visited Jeffer Mangels Butler & Mitchell LLP. The delegation included some of the highest-ranking officials from a top Chinese government agency – “China State Administration of Foreign Exchange” – an agency that directly oversees the investment of $3 trillion of China’s foreign reserve. CONTINUE READING →
26 November 2018
Hotel Lawyers buying and selling hotels
Los Angeles—The Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP is pleased to announce the recent sale of the Marriott Warner Center Woodland Hills. Located in the Warner Center business development in Woodland Hills, CA, the 478-room hotel sold for over $100 million. JMBM represented the seller in the transaction.
The Global Hospitality Group’s team included senior member David Sudeck, as well as associate Caleb Gilbert.
“Our priority is supporting our client’s continued growth and success,” said Sudeck. “The Woodland Hills sale is part of a strategic disposition of key assets.”
Hotel Lawyer insights on acquisitions and sales
The hotel lawyers of JMBM’s Global Hospitality Group® provide unsurpassed experience and resources to hotel owners, developers and capital providers in buying, selling, financing and branding hotels. Based on the Group’s experience with more than $125 billion of hotel transactions and more than 4,700 hotels, these resources are valuable for veteran dealmakers and first-time hotel buyers and sellers. Look at some of the materials available on HotelLawyer.com and see how this experience can help you:
Alan Reay, President of Atlas Hospitality Group, speaks with Robert Braun, senior member of JMBM’s Global Hospitality Group® at JMBM’s 2016 Meet the Money® – the national hotel finance and investment conference. They discuss the California hotel market including sales and purchases, pricing, RevPAR, financing, and the impact of the Marriott/Starwood merger and Airbnb.
A transcript follows the video. See other videos in this series on the Jeffer Mangels YouTube channel.
Bob Braun: I’m with Alan Reay of Atlas Hospitality. He’s the foremost hotel broker in California, I’d say. At least that’s what I tell my clients, and I’ve always been proved right. Alan, thanks very much for coming and talking to us today. I think you have your pulse on the market, certainly here in California, more than possibly anyone else. What do you see in the hotel market today? What kind of trends do you see?
Alan Reay: During the first quarter we’ve definitely seen a big drop off in sales in California. In the U.S., down 52%; in California, down 35%; that really has nothing to do with the economic fundamentals, because RevPARs are still increasing, profits are up and a lot of the numbers are positive throughout California. It has been a fundamental shift from a buyer’s sentiment in terms of how they’re looking at deals and how they’re pricing them. We had a lot of turmoil in the public markets, as you know, in the first few months of 2016, and a lot of REITs have pulled out of the market, and a lot of lenders have pulled out of the market. So that’s created a disconnect between what buyers and sellers expectations are on pricing, which in turn has created a big drop in hotel sales volume.
Bob Braun: Now do you think this creates an opportunity for people? Or is the lack of lending and the lack of interest something that’s just going to continue through the rest of the year? CONTINUE READING →
24 June 2015
Bill Sipple, Executive Managing Director of HVS Capital, speaks in the video below about activity in different markets, limited service properties, and whether rising interest rates will have an effect on transactional activity.
Bill sat down with Bob Braun, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.
A transcript follows the video.
Bob Braun: Hi, I’m Bob Braun. I am a Partner at Jeffer Mangels Butler & Mitchell. I’m here at Meet the Money® 2015, our 25th anniversary. I’m here with Bill Sipple, who is the Executive Managing Director of HVS Capital. Bill, thanks for coming by and talking with us.
Bill Sipple: It’s good to be here, thanks. CONTINUE READING →
23 June 2015
Jack Westergom, Managing Director of Manhattan Hospitality Advisors, discusses hotel operating agreements, asset management, and the RFP process in the video below.
Jack spoke with David Sudeck, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.
A transcript follows the video.
David Sudeck: I’m David Sudeck. I’m a senior attorney with Global Hospitality Group® at Jeffer Mangels Butler & Mitchell. We’re here at the 25th Annual Meet the Money® Conference. I’m here with Jack Westergom, Managing Director of Manhattan Hospitality Advisors. Welcome.
Jack Westergom: Thank you. CONTINUE READING →
18 June 2015
Deric Eubanks, Chief Financial Officer of Ashford Hospitality Trust, discusses why now is a great time to buy hotels, which segment provides the best opportunities, and how supply growth will affect the hospitality industry over the next few years.
Deric sat down with Bob Braun, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.
A transcript follows the video below.
Bob Braun: Hi, I’m Bob Braun. I am a Partner at Jeffer Mangels Butler & Mitchell and I’m a senior member of our Global Hospitality Group, and I’m here with Deric Eubanks, who is the CFO of Ashford Hospitality Trust. We wanted to take a chance to talk about what you see in the market, and importantly, how Ashford is reacting to what you see in the market.
Deric Eubanks: Sure. CONTINUE READING →
15 June 2015
Bill Blackham, President and CEO of Supertel Hospitality, speaks in the video below about new supply and assets coming to the marketplace for sale, changing guest expectations across different segments, and financing for new development.
Bill spoke with Bob Braun, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.
A transcript follows the video.
Bob Braun: I’m Bob Braun, I am a partner at Jeffer, Mangels Butler and Mitchell. I’m part of the Global Hospitality Group®. I’m here at Meet the Money® 2015 for our 25th Anniversary, and I’m talking with Bill Blackham, who is the President and CEO of Supertel Hospitality. Bill, it’s good to have you here.
Bill Blackham: Thank you Bob, it’s nice to see you again. CONTINUE READING →
11 June 2015
Mike Cahill, CEO and Founder of Hospitality Real Estate Counselors and co-chairman of the Lodging Industry Investment Council, speaks in the video below about activity in the 2015 hospitality market, the current cycle and where we may be headed next, distressed hotel sales from lenders, and interest rates and other potential disruptors to the hotel industry.
Mike’s conversation with Bob Braun, a senior partner in the JMBM Global Hospitality Group®, is part of our video interview series on hotel finance and investment opportunities in 2015.
A transcript follows the video.
Bob Braun: Hi, I’m Bob Braun. I am a Partner with Jeffer Mangels Butler & Mitchell, and I am here at Meet the Money® 2015, our 25th anniversary, and I am sitting with Mike Cahill, CEO and founder of HREC. Mike, thanks very much for coming and spending a little time with us.
Mike Cahill: Thank you for having us. CONTINUE READING →
4 October 2014
After so many years of being off everyone’s screen, Los Angeles has suddenly become one of the hottest markets for real estate investment. Roger Vincent’s article of October 4, 2014, in the Los Angeles Times provides some of the latest and most exciting detail about how the “smart money” in New York now sees Los Angeles is a great place to buy real estate. See “Downtown L.A. real estate is drawing N.Y. investors’ interest.”
The transformation of Los Angeles to a “real city” where people live, work, and play has taken decades. The city has lagged behind many other gateway cities and its real property values have languished relative to other major markets. But the renaissance of DTLA is real. See “Hotel Lawyer in Los Angeles: Why does it seem like everyone wants to build or buy a hotel in downtown LA? It’s the “Renaissance of DTLA,” silly!”
And the new dynamics have changed international preferences for real estate investment.
Big changes in the past few years
Noting that downtown Los Angeles (DTLA) was “disdained” by Wall Street for real estate investment until lately, the Times article cites a 23% increase in the dollar volume of real estate purchased by New York-based investors in 2014 compared to 2013. CONTINUE READING →
25 August 2014
Lately, it seems like everyone wants to buy — or sell — an independent hotel management company. And this may be one of the best times to do so in a long while. Here are some thoughts on this timely subject by two of our hotel lawyers who have just completed a successful sale of an independent operator.
Why this may be the time to buy or sell a hotel management company
A hot trend and five key issues
by
Guy Maisnik | Hotel Lawyers
One of the hottest trends right now is buying (or selling) independent hotel management companies. The demand is coming from all directions – existing management companies, investment funds and foreign buyers. Existing management companies are scrambling for market share, economies of scale and strategic markets. Investment funds are looking for the direct control over their hotel investments through a captive management company as well as attractive economic returns that a great independent operator can achieve with limited capital investment and risk compared to hotel investment. And foreign owners share many of these goals, and see the acquisition of a hotel management company as a solid way of entering into the hotel market in the United States.
From the potential seller’s standpoint, the timing may be optimal for a sale at this point in the cycle. A management company’ sale price is typically negotiated as a multiple of earnings. Traditionally, this multiple is four to six times earnings before interest and taxes, after making adjustments for expenses that would not continue to the buyer, and deducting from the price any interest-bearing debt that the buyer assumes. However, in this market, hotel management companies with a proven track record of performance, and a high quality (sustainable) earnings stream can command a price well in excess of six times earnings before interest and taxes with multiple suitors. The demand is there, but the process is complex.
And here are five key issues or questions you should consider before buying or selling a hotel management company. CONTINUE READING →