News for the Hospitality Executive
Hotel Lawyer: The hotel transaction market is heating up!
By Jim Butler and the Global Hospitality Group®,
Author of www.HotelLawBlog.com
April 26, 2011
transaction market is heating up, and I am still getting calls and
about my interview with Eric Stoessel in the National Real Estate
month, where we discussed how the hotel transaction market is poised
for a big
also getting calls about Meet
Money®, the hotel finance conference that will take place in
two weeks in
Los Angeles. Registrants want to know: will debt and equity players be
(The answer is, yes!)
first things first.
Distress Buys: 'There's Something for Everyone Right Now'
called me shortly after the $1.28 billon Ashford Hospitality Trust
joint-venture acquisition of Highland Hospitality's 28-hotel portfolio
closed last month, He wanted to know if more portfolio sales like the
Hospitality Trust deal would be coming online. What did I think?
values increased 10% to 15% in 2010 and prices are trending up.
fundamentals are improving, there is little new supply and there is
unlimited equity on the sideline. For opportunistic investors looking
value, it won't get better than this. The time is now!
told Eric in our interview:
"We're less likely to see as many
foreclosures as we saw in the 1990s, but we're more likely to see
recapitalizations -- meaning fresh capital investments, discounted
note sales, restructuring arrangements -- where the new investor gets
lion's share or all the equity."
and I discussed why how these kinds of deals are often good for the
it may prevent negative tax consequences, or offer some forgiveness of
indemnity. Sometimes the original borrower is left with some real
interest, but the ownership structure generally favors the capital
We discussed why note sales often work for lenders and what kinds of
are doing deals. We covered a lot of ground in a short interview.
here to read the National Real Estate Investor article entitled, Hotel
Distress Buys: 'There's Something for Everyone Right Now'.
is no typical scenario for how investors and distressed borrowers come
to discuss distressed hotel deals, but you can be sure that providers
consumers of capital, and people looking to do deals will be at Meet
2011, May 2-4, 2011 in Los Angeles.
the Money® is one of the "most efficient" hotel investment
conferences. Attended by senior level executives, coming to "do
this conference is always a reliable venue for providers and consumers
capital. But the timing and the dynamics for the Conference this year
particularly exciting. After a long drought of transactions and
are back! Simply put, investment opportunities are not going to get
this, so you need to figure out how to find transactions now, and
timing is NOW. Even a delay of a few weeks or months may mean you miss
get more information and register for Meet the Money®, go to www.MeetTheMoney.com.
represent hotel lenders,
owners and investors. We have helped our clients find business and
solutions for more than $60 billion of hotel transactions, involving
1,000 properties all over the world. For more information, please
Butler at [email protected]
JMBM’s Global Hospitality Group®
The hotel lawyers in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell (JMBM) comprise the premier hospitality practice in a full-service law firm and are the authors of the Hotel Law Blog. We represent hotel owners, developers, investors and lenders and have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,000 properties worldwide. For more information about the Global Hospitality Group®, go to www.HotelLawBlog.com. For more information about full range of legal services provided by JMBM, go to www.JMBM.com.
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