News for the Hospitality Executive
DALLAS, October 25, 2012 – On Oct. 10 and 11, Dallas-based Prism Hotels & Resorts, one of the fastest growing hotel management companies in the country, hosted industry leaders and heavy-hitters in hotel lending and loan servicing for its 12th annual "Fishing for Solutions" conference. This exclusive gathering in Grapevine, Texas enabled lenders, special servicers and asset managers to speak frankly about pressing industry issues in a uniquely open setting.
One notable takeaway from the event, was the agreement by two hotel industry icons, Steve Van, president & CEO of Prism Hotels & Resorts, and Tom Corcoran, chairman of the board/director of FelCor Lodging Trust Inc., that the “Extend and Pretend” notion developed in the late 1980’s is better characterized in today’s market as “Extend and Amend.” Van and Corcoran explained, by holding on to real estate investments—instead of dumping them for twenty-five cents on the dollar as previously accepted as a common practice during other market downturns—servicers and lenders have ultimately recovered more value for the bank and the trust.
“Real Estate Investors may not have made as much money this past year as they once did getting super cheap acquisitions, but by holding and waiting, as some would call “pretending”, they have helped increase the overall value of their assets and recovered a far greater portion of their loans,” said Van. “As an industry, we hoteliers collectively need to change our mindsets from the stale strategies of yesteryear and stay the course to see significantly greater values as an industry.”
The panel held lively discussions on a range of other topics, including adjustment to FF&E reserve standards to account for the PIP requirements, the Fair Value Purchase Option within the CMBS provisions, and the importance of visa waiver policies to industry growth. STR research shared that in 2012 only one in 10 hotel sales were defined as distressed, compared to one in every three in 2011.
Another issue explored during the conference included the growing trend of suburban full service hotels becoming extinct and the notion that owners don’t want to become ‘pregnant’ with banquet space, restaurants and catering.
“Fishing for Solutions” serves an authentic forum for valuable conversations on lending issues for the distressed asset community. A date has not yet been set for the 13th annual conference in 2013, however interested parties can contact Prism Hotels & Resorts at (214) 987-9300 for invitation consideration.
About Prism Hotels & Resorts
Dallas-based Prism Hotels & Resorts is one of the fastest growing and most experienced hotel management, advisory services and receivership companies in the United States. The company currently manages more than 55 hotels for multiple owners including urban, suburban and resort destinations. Prism is approved to manage all major brands and has been approved as receiver nationwide. For more information, please visit www.prismhotels.com.