News for the Hospitality Executive |
New York Times: Hotel Sector May Lead Economic Recovery
By Jim
Butler
and the Global Hospitality Group®,
Author of www.HotelLawBlog.com December 9, 2010 For
the most recent update on this topic, click here 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.
I
believe the hospitality industry is poised for a rebound in 2011 that
is
disproportionately greater than the economy's recovery, springing back
from its
disproportionate decline in the Great Recession of 2008. It is possible
that
hotels will be one of the leading sectors in the coming economic
recovery. But
investors must be realistic about market value, and understand the
risks
involved.
The
deal environment has changed significantly in the past few years.
Transactions
look different, have different challenges, and come with greater risks.
Although there will be more distressed sales that look like
conventional
transactions, "RESTRUCTURING" will be the mantra for more successful
investors.
In the
new deal environment, restructuring leaves old ownership with some
stake in the
venture, perhaps to mitigate adverse tax consequences or to provide
hope-certificate upside if the recapitalized investment prospers. But
the
successful restructurings we are seeing give new investors control of
the
investment without bidding at an auction, and provide attractive
returns for
risks taken. Yes,
hotel investors are waking up! Whether you are a buyer, seller or
capital
provider, it is more important than ever to understand the new
investment
reality and how to unlock the value in a hotel property. The hotel
lawyers at JMBM's Global Hospitality Group® are excited -- and
ready -- for a
very interesting 2011! This
is Jim Butler, author of www.HotelLawBlog.com
and hotel lawyer, signing off. We've done more than $60 billion of
hotel
transactions and have developed innovative solutions to unlock value
from
troubled hotel transactions. Who's your hotel lawyer?
Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,000 properties all over the world. For more information, please contact Jim Butler at [email protected] or 310.201.3526. Jim Butler is a founding partner of JMBM and Chairman of its Global Hospitality Group®. Jim is one of the top hospitality attorneys in the world. GOOGLE "hotel lawyer" and you will see why. JMBM's troubled asset team has handled more than 1,000 receiverships and many complex insolvency issues. But Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. For example, they have developed some unique proprietary approaches to unlock value in underwater hotels that can benefit lenders, borrowers and investors. (GOOGLE "JMBM SAVE® program".) Whether it is a troubled investment or new transaction, JMBM's Global Hospitality Group® creates legal and business solutions for hotel owners and lenders. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them. |
Contact:
Jim Butler
|
Also See: | ADA
Defense Lawyer: California's Certified Access Specialist program --
Does it provide all of the intended ADA protections? / Jim Butler /
December 2010 |
How
"Standards" Can Protect Your Hotel Mixed-use Assets . . . / Jim
Butler / November 2010 |
|
Hotel
Lawyer: Checklist for Negotiating Hotel Management Agreements/Hotel
Operating Agreements - The HMA PRO™ Checklist / Jim Butler /
November 2010 |
|
Distress
Continues for Hotels and Commercial Real Estate: New Data Suggests 8
year Downturn, Dismal Prospects and Increased Foreclosures / Jim
Butler / October 2010 |
|
Atlas 2009 Year End Hotel Survey . . . and What it Means / Jim Butler / February 2010 |