News for the Hospitality Executive
Public-Private Financing Still Works
for Hotel Developments
By Jim Butler and the Global Hospitality Group®,
June 7, 2010
Hotel lawyer Catherine Holmes, one of our public-private hotel financing specialists in JMBM's Global Hospitality Group® has represented cities and other governmental entities in several public-private partnership hotel development and convention center hotel deals, such as the recent transactions with the City of Dallas and the Redevelopment Agency of the City of Riverside.
Cathy recently moderated a panel on the topic of public-private financing for hotel development in Los Angeles with some of the top experts in the field. Here is a summary of what they told us.
Opportunities for Public - Private Financing of Hotel Developments
by Catherine De Bono Holmes
We were fortunate to have three leading experts in the field of public-private hotel financing share their experience with us recently on a panel in Los Angeles: Mark Tobin, President of HREC Development Resources, Ray Garfield, principal and founder of Garfield Traub Development, and William ("Bill") Corrado, Director of the Public Financing Department of Citigroup. Mark, Ray and Bill provided a wealth of information for hotel developers, governmental entities and educational institutions about the feasibility and economics of building a hotel using a variety of public and private financing. I am pleased to share with you their insights from the panel discussion, below.
Mark focuses his practice on advising municipalities and other governmental entities on the development of publicly-owned or publicly-financed hotels and related developments. He has acted as an advisor on more than $3 billion in municipally sponsored hotel projects financed with project revenue, tax-exempt bonds. Mark is working with 12 to 15 cities currently considering a hotel development through some form of public-private development partnership.
Ray Garfield and his company, Garfield Traub Developments, specialize in turn-key development of hotels, conference centers and entertainment venues for municipalities, airports, college campuses and hospitals. These developments can bring hundreds of thousands of people into the communities in which they are located to spend money and generate sales tax, without burdening schools or other public resources.
Bill Corrado has helped cities around the country raise financing for large convention center hotels and sports arena projects.We are grateful to our panelists for providing us this insightful view into opportunities available now for public-private financing of hotel projects throughout the United States.
Catherine DeBono Holmes is a partner in JMBM's Corporate Department and a senior member of JMBM's Global Hospitality Group®. Cathy represents owners, operators and lenders in hotel development, financing and acquisition transactions. She currently represents Formosa International Hotels in the recently announced acquisition of the Regent brand hotels with operations in Asia, Europe, the Middle East and the Caribbean. She has also represented cities and other governmental entities, including recently the City of Dallas and the Redevelopment Agency of the City of Riverside, in publicly owned and public-private partnership hotel developments such as convention center hotels and redevelopment projects. With her background in securities and corporate law, Cathy also assists hotel owners, lenders and investors with complex entity structuring, as well as public and private offerings of debt and equity securities. She has represented owners and operators in hotel and resort developments, including condo-hotels and residences, throughout the U.S., Central America, Europe, the Middle East and Asia. Cathy has also represented numerous hotel owners in the selection of hotel operators and negotiation of hotel management and franchise agreements with all of the major hotel brand operators. To access Cathy's articles on www.HotelLawBlog.com, click on the topics "Condo Hotels" or "Green Hotels." For more information, please contact Cathy Holmes at 310.201.3553 or firstname.lastname@example.org.
|Also See:||What Kinds of Public- Private Hotel Projects Are Underway Now and What Kinds of Public Financing Are Available Now to Build Hotels / Catherine Holmes / May 2009|