Bloomberg news interview on investment outlook for 2011.
Is 2011 the “last window” for hotel investment in this cycle? Where are the biggest investment opportunities? What do you need to know about hotel investment now?
I thought you might like to hear my interview today on Bloomberg Law on Demand, hosted by Lee Pacchia. Click here to listen to the 10-minute podcast.
7 December 2010
It is always nice to be quoted in the New York Times, especially in a story that includes so many industry heavy hitters, as was the case in the article, After a Rough Night, Hotel Investors Are Waking Up. Reporter Janet Morrissey’s article provides a thought-provoking picture of the current unprecedented hotel investment landscape.
6 December 2010
Click here for the latest articles on ADA Compliance and Defense.
Hotel ADA Defense & Compliance Lawyer on CASp: In our ADA Defense & Compliance blog of September 20, 2009, we let California hotel owners know why they should take advantage of the “Certified Access Specialists program” (CASp), a piece of legislation designed to curb abusive ADA litigation. See: ADA Hotel Lawyers: California opens door to more ADA litigation, but also offers protection to the well-informed.
However, a judge in the United States District Court, Eastern District of California determined, in O’Campo v. Chico Mall, LLP , that a “public accommodation” (such as a hotel) with CASp certification is not entitled to all benefits that were intended by the California Legislature.
22 November 2010
Mixed-use can be a key to unlock value. But “standards” can be critical to protect the value of your hotel mixed-use asset
Some years ago, we coined the term “hotel-enhanced mixed-use” to describe those dynamic mixed-use properties where the hotel acts as the “spark plug” that energizes the entire project.
Hotels can be the “ultimate amenity” for mixed-use projects because they can distinguish the project, provide a great driver of traffic, and offer an integrating hub for residential and retail customers.
Since that time, we have seen hotels in successful mixed-use properties achieve RevPAR premiums of 30% to 40%. But these success stories are written about hotel developers and brands that understood — on the front end — that quality control had to be hard-wired into the regime. Hotel owners and hotel brands that failed to do that have not been so lucky.
In her article below, which was recently published by Hotel Business, hotel lawyer Catherine Holmes, a senior member of the JMBM Global Hospitality Group®, offers experienced advice on how you can “Protect your mixed-use asset by creating and maintaining standards.”
12 October 2010
Hotel Lawyer with a cold splash of realism from new economic data! If you are not ready for the “long haul,” it is time to reassess your strategies . . .
The hotel lawyers of JMBM’s Global Hospitality Group® believe investors, borrowers and lenders should assess their options and develop their strategies based on realistic assumptions and the latest hard data. If you haven’t seen the latest, this is worth looking at.
On October 6, 2010, the International Monetary Fund or IMF released its latest appraisal of the situation for real estate on a global basis (in a report entitled World Economic Outlook October 2010 Recovery, Risk, and Rebalancing). The conclusion was that the prospects in the global real estate sector are “dismal,” with a downturn that could last eight years.
“Especially in the United States, given the limited success of mortgage modification programs and the shadow inventory from foreclosures and delinquencies, this has renewed fears of a double dip in real estate markets. A lot will depend on the path of economic recovery: if employment creation remains low, risks of a double dip in housing naturally increase,” the IMF said.
But the IMF data is not all that is new. Let’s take a look at some other significant data points, including those from Fitch, Deutsche Bank and Atlas Hospitality.
06 October 2010
Terminology
Contracts between hotel owners and managers (or operators) controlling the management of a hotel go by various names. They are called hotel management agreements, HMAs, hotel management contracts or hotel operating agreements. For convenient reference, this article will generally use the term “Hotel Management Agreement” or “HMA.” However all these terms can be used interchangeably and mean the same thing, just as with hotel operator or hotel manager.
Whatever they are called, Hotel Management Agreements allocate risk between the hotel manager and the hotel owner. They are critical in determining the profitability and value of a hotel.
Hotel Lawyer with a big tip on how to get a great hotel operator and a fair hotel management agreement — Why Hotel Owners Need HMA PRO™
For more than 20 years, hotel lawyers at JMBM’s Global Hospitality Group® have helped hotel owners find the best hotel operators for their properties and get fair hotel management agreements. Our clients get better results because of our experience gained in negotiating, re-negotiating, litigating, arbitrating and advising on more than 1,000 hotel management agreements and more than $87 billion of hotel transactions.
Our experience has has taught us that the traditional Request for Proposal or RFP process used to get hotel operators is too passive and ineffective. By its very nature, a “mere” RFP suggests that the owner should just wait for whatever an operator might propose, and that is simply not in the best interest of either the owner or the prospective operator.
HMA PRO™ is JMBM’s ultimate refinement of the old standby RFP. We started with the typical hotel industry RFP process still used by knowledgeable hotel consultants today, but we made some critical changes that have produced stunning results for our clients, greatly enhancing the value of the owner’s hotel.
Here’s how it works . . .
2 October 2010
Click here for the latest articles on ADA Compliance and Defense.
The U.S. Attorney General has signed into law important revisions to the Department of Justice’s Regulations implementing the Americans with Disabilities Act.
The new 2010 Standards impose both technical requirements, (e.g. the specifications a property must meet to be fully accessible), and scoping requirements (e.g. the number of rooms or elements in a facility which must be fully accessible).
Hotel owners will need to review their facilities to ensure they are in compliance with the 2010 Standards and retrofit where necessary to meet them. Developers of new hotel properties will need assurances from their design and construction companies that the new obligations and restrictions are being worked into their plans.
22 September 2010
Hotel Lawyer with the latest pulse of the hotel industry from The Lodging Conference at the Arizona Biltmore in Phoenix Arizona.
The title of this blog says it all. This is the time and place to be – The Lodging Conference in Phoenix, Arizona. We called it at Meet the Money® in May, 2010, but the tide that started turning at the end of the first quarter 2010 has continued its flow and it seems to be unmistakable now. I expect to hear some very exciting things at the Conference here in the next few days.
I would describe the mood of the pre-conference gathering that started this evening as very “EXPECTANT.” Expecting more and better in both transactions . . . and eventually . . . perhaps more slowly . . . better in the fundamentals of the hotel industry.
15 September 2010
Hotel Joint ventures are springing up like weeds in the hotel industry.
Nearly two years after the collapse of the old economic order of easy money, the biggest players in the hotel industry are using the joint venture structure to seize opportunities for acquisitions and expansion.
But everyone knows joint ventures can be risky. Why is the JV model being used and is there a way to minimize the very real risks that exist in every joint venture?
In her article below, which was recently published by Hotel Business, hotel lawyer Catherine Holmes, a senior member of the JMBM Global Hospitality Group®, explains why the joint venture model is being used for hotel acquisitions and expansion, what inherent risks exist in the the JV structure, and offers “Four Keys to Success in Hotel Joint Ventures.”
Cathy’s straightforward and timely advice is based on her experience representing numerous hotel owners in the acquisition process, whether it is a debt or equity transaction, a joint venture, a public-private partnership, or a deal that requires a complex capital stack. She recently represented Formosa International Hotel Corporation in the acquisition of the Regent brand hotels with operations in Asia, Europe, the Middle East and the Caribbean.
30 July 2010
Hotel Lawyer with a name change. JMBM’s Global Hospitality Group® is part of a vibrant law firm. Today, that firm announced that it is changing the firm name, but we will still be known as “JMBM.” Here’s the story.
