27 April 2009
Hotel Lawyer with breaking concerns over a flu pandemic. International fears of a flu pandemic rose today as the death toll from swine flu in Mexico rose to 149. Cases have also been reported in the United States, Canada, Spain and New Zealand. What does this mean for the lodging industry and the economy?
26 April 2009
Hotel Lawyers with a serious new study documenting pricing premiums for GREEN hotels. At least for new construction, properly planned from the outset, there is little or no additional cost for building to LEED certification standards (for example, see my Cornell Hospitality Quarterly article entitled “The Compelling Hard Case for Green Hotel Development.”).
Even the myth that luxury hotels cannot be sustainable has been shattered with beautiful luxury hotels gaining LEED certification, like Montage Beverly Hills recent award of LEED Gold certification.
And just a few days ago, my friend Meng Li, a LEED AP whom I met through JMBM’s 2008 Hotel Developers Conference, sent me a copy of a new study published by two professors at the University of Reading, documenting a very strong economic premium in both rental income and asset prices (sales price) for green buildings based upon data from 553 green projects. The numbers may even amaze you (more than a 31% value premium).
25 April 2009
Hotel Lawyers with success stories on GREEN hotels. The hotel lawyers in JMBM’s Global Hospitality Group® are big believers in “green” hotels. Many industry friends continue asking for the DVDs and great presentation materials from last year’s Hotel Developers Conference on green hotel development. Most of these resources are available on www.HotelLawBlog.com under the “TOPIC” of Green Hotels. The events I am reporting on today build on the base of that knowledge and experience, and thus lead us to “Green Hotel economics 202.”
As many of you know, we believe that green building is the ECONOMICALLY prudent way to go. That is the entire thesis of my Cornell Hospitality Quarterly article entitled “The Compelling Hard Case for Green Hotel Development.”
Still, I was pleasantly surprised when two new items ended up on my desk this week. They are both further demonstration confirming the hard economic value of green development. The first item was the LEED Gold certification awarded to one of my favorite luxury hotels, Montage Beverly Hills under the direction of my friend, Ali Kasikci. The second was a new study published by two professors documenting a very strong economic premium in both rental and value (sales price) for green buildings based upon data from 553 green projects. The numbers may even amaze you (more than a 31% value premium). But that is a story for the next blog . . .
22 April 2009
Hotel Lawyer with the latest PKF Consulting and JMBM survey results.
As I was getting ready to publish JMBM’s latest survey, I received an email from our friends at PKF Consulting with their 2009 Hospitality Investment Survey. The results of both surveys are interesting for different reasons. Here they are.
21 April 2009
Please see “troubled hotel loans – workouts, bankruptcies & receiverships” for the latest articles on troubled hotels.
Hospitality Lawyer: Distressed hotel loan bankruptcies and restructurings are on the rise. Now we are starting to see some new issues tested. As The Great Recession of 2008 continues to set record unemployment levels and send shockwaves through the economy, hotel bankruptcies are on the rise. Sure a lot of lenders are tending to extend maturities, work out forbearance restructurings or go for uncontested receiverships, but we are starting to see some bankruptcy filings as well.
And just as the economy is in “uncharted waters,” some loan structuring terms or approaches that were developed in the 1990s have not been fully tested, if at all, by a severe downturn or serious litigation. One of those devices that has been quite popular is the use of a “special purpose entity” or SPE.
19 April 2009
Hotel Lawyer: “I am from the government and I am here to help you . . .”
As the old joke goes, this was one of the three biggest lies (along with “the check is in the mail” and “that’s my Porsche and I own it.”). But however you view it, the government is certainly taking a bigger role in all our lives. Part of the latest regulation requires nutritional information to be provided to customers of hotels and restaurants. Here is the latest from our Jim Abrams.
16 April 2009
Please see “troubled hotel loans – workouts, bankruptcies & receiverships” for the latest articles on troubled hotels.
Hotel Lawyer with the latest data on commercial real estate loan maturities and some important implications — Why you need to know all about CMBS Special Servicers and how to meet them!
My friend, Michael Murray at MBA Newslink, published a story this morning with some startling numbers. According to the Mortgage Bankers Association (or MBA), $90.5 billion of CMBS debt comes due this year! And that is only part of the story.
15 April 2009
Hotel Lawyer with questions, and perhaps some guidance, on how we make this all work. Today, the Fed announced that for the first time in 50 years, the US economy has experienced deflation. According to the Wall Street Journal, the Labor Department reported that the March consumer-price index slipped 0.4% below its year-earlier level — the first decline in more than 50 years.
14 April 2009
Please see “troubled hotel loans – workouts, bankruptcies & receiverships” for the latest articles on troubled hotels.
Hotel Lawyer: Hotel borrower dilemma: the note is in default or coming due. Do you fight the land war in Asia or find a way to make love (not war)? This is the first article in a series of two about how lenders and borrowers need to work outside the box to accomplish their objectives in this down market. Today’s article focuses on the borrower perspective, and the next one will be on the lender perspective. I encourage lenders to read this article, and borrowers to read the lender article. There is a win-win here for many players. We have some ideas you may never have considered before.
6 April 2009
Ask the Hotel Lawyer™: What can we learn from the bedbug story? Bedbugs have plagued the hospitality industry for centuries and seem to be making a resurgence.
But there is an iconic story about a “bedbug letter” which is also instructive on the importance of treating people with respect and dignity, and the embarrassment (and financial costs) “important people” can cause to their colleagues and their companies when they forget these lessons.
Here’s the story, as told by Hotel Lawyer Robert Braun for www.HotelLawBlog.com readers, and a real life lesson from last week.
