News for the Hospitality Executive
May 17, 2011 – Leawood, KS (Metro Kansas City) Most folks have become used to hearing about the massive amounts of residential foreclosures. Television, newspapers and other media continue to release statistics regarding the housing market and bank owned residential property. Except for a few instances, commercial foreclosures have not been in the forefront of the news. And, regional foreclosures or deeds in lieu of foreclosure for hotel assets have not been commonplace, until recently. Within the last four months, Leisure Real Estate Advisors, LLC , a metro Kansas City hotel brokerage company, has accepted assignments to sell ten regional hotel assets, all taken back by local or regional banks. Brent A. Jaynes, Managing Partner at Leisure Real Estate Advisors comments, “We receive weekly notices from various industry sources regarding foreclosures, and the bulk of those have come from the securitized (CMBS) market, all of which involve serious dollars. Those foreclosures have been taking place for over the last 18 months. However, until now, we have not seen very many distressed assets regionally”. The relative health of the Midwest hospitality market, as compared to many areas of the country, has probably contributed to the lag in foreclosures or deeds in lieu. “Lower revenues in the winter months probably exhausted all capability of distressed owners to retain their assets,” says Jaynes. And in most cases the lenders and owners were out of options and the only action was to commence foreclosure.”
The local Kansas City area assets include the new Comfort Inn and Candlewood Suites at Kansas City International Airport and two newer Suburban Lodges, one in Lenexa, KS and the other in Bentonville, AR. In addition, the Sleep Inn in Olathe, KS and the Holiday Inn Express, Bonner Springs, are among the metro area properties that have been taken back. Other bank owned hotels are found in Omaha, Bentonville, rural Iowa and rural Kansas. “Although the circumstances are extremely difficult for the former owners, something had to happen with these assets. We are extremely pleased that a number of banks have confidence in us and our abilities to dispose of these assets in a timely manner”.
As part of its business model, Leisure Real Estate Advisors, LLC is affiliated with Leisure Hotels and Resorts, which also offers receivership, hotel and asset management capabilities. Of the ten hotels listed with Leisure Real Estate Advisors, nine are managed by Leisure Hotels and Resorts. “This association with a skilled management group provides us with a distinct advantage over our brokerage competitors. With this affiliation, we can provide all the services necessary to take over the asset, manage it and then arrange for the disposition. Very few in our business can offer this level of service,” says Jaynes. An additional advantage of this business model is the intimate coordination of efforts between the two entities. That is, both groups have worked together extensively and work as a team, not two separate entities with conflicting agendas. Each one knows the others methods of operation and effectively minimizes the financial and time impact on the seller.
Leisure Real Estate Advisors, LLC is based in metro Kansas City and has a specialty concentration in the marketing and sale of hotels. Over its 13 year existence, the company has become one of the premier hotel brokerage firms in the central US. Mr. Jaynes further remarked, “Although this market remains somewhat of a challenge, our activity is as high as it has been since 2007, before the recession. As the foreclosures are sold and the fundamentals of the industry improve, our activity will remain strong. There will always be demand for real estate with a strong business component built in.”
For more information on these investment opportunities or to discuss the investment market in general, please direct your questions to:
Brent A. Jaynes, Principal, 913-499-4731 or [email protected].
Leisure Real Estate Advisors, LLC
Leawood Executive Centre II
4501 College Blvd, Suite 205
Leawood, KS 66211
Real Estate Advisors Announces the Sale of the Hampton Inn, South
Lincoln, Nebraska / October 2010
Real Estate Advisors, LLC Continues Growth; David Jones Appointed
Investment Associate to the Kansas City Office / April 2009
|Leisure Hotels Expands Receivership Services for Distressed Hotel Assets; A One-Stop Resource with a 20-Year Track Record of Stabilizing and Operating Troubled Assets / April 2009|