Sonnenblick-Eichner Company Arranges $46,000,000 of First Mortgage Financing for Maison Dupuy, New Orleans, Louisiana
Sonnenblick-Eichner Company | August 13, 2019
Finance
Hospitality Financial Leadership – Two Lies You Need to Stop Telling Yourself
David Lund | February 3, 2020
#1 – The Lie is Complexifying Everything That’s a word that means we’re making things complex or what complexifying also means: You are taking one issue and applying it to many situations or people. For instance, the issue of leaders not giving you the information you need so you can do your job is complexifying. You are putting them all into the same basket. What you want to be able to do is take one by one—the conversations you need to have—and think about them one by one rather than thinking that nobody wants to help you, nobody wants to do their forecast, nobody wants to give you their month end stuff. You can’t put everybo...
Sonnenblick-Eichner Company Arranges $17,750,000 of Interim First Mortgage Financing for The Normandy Hotel, Washington, D.C.
Sonnenblick-Eichner Company | January 28, 2020
Beverly Hills, California – January 28, 2020 – Sonnenblick-Eichner Company announced today that it has arranged $17,750,000 of interim first mortgage financing for The Normandy Hotel, a six-story, 75-room boutique hotel located in the upscale Kalorama district of Washington, D.C. The Kalorama district is one of Washington, D.C.’s most desirable neighborhoods, located just blocks from Dupont Circle, and minutes from the White House, Capitol Hill, Smithsonian Museums, National Zoo and the Walter E. Washington Convention Center. The non-recourse LIBOR-based loan has a term of 5 years and paid off an existing acquisition and renovation l...
Hospitality Financial Leadership: Duty Meals
David Lund | January 20, 2020
By David Lund Recently I attended a hotel association conference where I was a speaker for one of their breakout sessions. The opening morning of the convention started with a breakfast where we listened to the many great developments within the association in the past year and heard a fantastic story from the morning keynote about evacuating an entire city without one casualty or serious injury from an oncoming forest fire. What a morning! But the thing that got me more that anything else that day was a memory. The memory of being in that very room some 35 years earlier having breakfast all by myself. You see it was the hotel and dinin...
Sonnenblick-Eichner Company Arranges Interim Leasehold First Mortgage Financing for Residence Inn by Marriott Walnut Creek, Walnut Creek, California
Sonnenblick-Eichner Company | January 15, 2020
Beverly Hills, CA – January 15, 2020 – Sonnenblick-Eichner Company has arranged interim first mortgage leasehold financing for the Residence Inn by Marriott Walnut Creek, located in Walnut Creek, CA. The non-recourse LIBOR-based loan funded upon completion of construction and the opening of the hotel. The Residence Inn by Marriott Walnut Creek is a 160-room, six-story, extended-stay hotel located in the heart of downtown Walnut Creek. The 77% loan-to-cost loan with a credit spread in the low 300s over LIBOR, provided a return of cash equity to the borrower and relieves them of the recourse obligations associated with the construction l...
Hospitality Financial Leadership: Chapter Four – The Pencil
David Lund | January 13, 2020
By David Lund The week after the summit was a bit of a blur for me. Several requests for interviews, all declined. Our public relations manager handled these with a simple story the flag mishap was a mistake given the procurement of new flags and the innocent mix up of which ones go where. Not our finest hour but the furor died down. But not before the chairman’s call. He was ballistic. “How could you be so stupid,” he asked? I explained the situation to him and he calmed down a little. “That little princess,” he said, “You tell her the next time she calls that we are not part of her domain. “Liquor permits or...
Access Point Financial Partners With AD1 Global to Finance the Development of Hyatt Place and Home2 Suites in Palm Bay
Access Point Financial | January 7, 2020
Leading hospitality industry lender selected to finance dual properties for new Florida development partnership, citing reliability and flexibility ATLANTA – January 7, 2020 – Access Point Financial, LLC (APF), a leading direct lender and specialty finance company focused exclusively on the hospitality industry, has signed an agreement with top hotel development and management firm, AD1 Global Hospitality, to finance the development of a Hyatt Place and Home2 Suites by Hilton located in Palm Bay, Florida. Access Point Financial provided $26.8 million in financing for the development of the hotels, with $15 million for the 106-room ...
Hospitality Financial Leadership: My 10,000 Hours
David Lund | January 6, 2020
By David Lund This piece is about a book I read that was a gift to me by my daughter one Christmas not that long ago. At the time I had no idea how much it would mean to me and how important it is for people to understand its message. The message is simple, no one just lands on this planet with what they need to be successful. We ALL must work for it. That’s right and I know you have heard this before as did I, but having read the book and now having experienced what I have it comes full circle. I want to share with you what it means to me—what it means to me to have worked for it and in hope that it will help you see your own maste...
Spirides Arranges $10 Million Hotel Construction Loan for New Holiday Inn Express in Lumberton, NC
Spirides Hospitality Finance Company | December 19, 2019
TAMPA, FL—Spirides Hospitality Finance Company has successfully arranged and the borrower has officially closed on a $10 million construction to permanent, first priority mortgage loan from a Southeast U.S. headquartered bank to finance the development of a new Holiday Inn Express in Lumberton, North Carolina. This new 95-guest room, 5-story Holiday Inn Express will be built on 2.2 acres of land located at 302 Wintergreen Drive near Interstate 95 Exit 22 in the City of Lumberton, Robeson County, North Carolina. Hotel amenities will include a breakfast dining area, a meeting room, an indoor swimming pool, an outdoor courtyard, a fitness c...
Hospitality Financial Leadership: Chapter Three – The Flags
David Lund | December 11, 2019
By David Lund The crap I must deal with never ceases to amaze me. The Stow sees many groups and we were preparing for an international political gathering and my country’s government was hosting the event. This meant lots of politics, decorum and protocol that all gets sorted out, or so to speak. It was nothing short of a cluster bomb and I had to stick-handle my team and the politicians. Our city and country have a colorful history and it is rich in its traditions and symbols. My phone rang late one afternoon as the summit was less than a week away. My secretary, notice I didn’t call her an assistant, she was a secretary and somewh...
Hospitality Financial Leadership: Hotel Franchise/Management Fees & 20 Years Is a Long, Long Time
David Lund | December 2, 2019
By David Lund Being a branded or franchised hotel is an expensive endeavor. Especially when you consider the average agreement is 20 years in duration and you’re on the hook for the fees outlined in your agreement plus anything else the management company throws at you. When I say on the hook, I mean they can literally charge you for whatever they want as long as they determine it is in your best interest. This is the basic concept that forms the meat of the management or franchise agreement. When you consider the cost of the fees there are some terms you will want to get familiar with. Terms that are part of your hotel management ...
Hospitality Financial Leadership: Chapter Two – Incompetence
David Lund | November 18, 2019
The chapter below is an excerpt from my new book. It’s fiction but some of the characters and story lines are based on people I have worked with and events that have taken place in the hotels I have worked in. The book is a fable about a hotel manager who has some very bad habits. He must change in order to survive and the book takes him and you through the lessons needed to be a great hospitality financial leader. I’m writing ahead each month so I’m not sure how the book will end. I hope you enjoy it and if you missed any earlier chapters you can find them on my website blog tab. The weekly executive committee meeting in my hote...
Hospitality Financial Leadership: Controlling Food Cost – Top 10 List
David Lund | November 11, 2019
By David Lund Food cost is a never-ending battle in a war that does not end. You can never take your foot off the gas, if you do you will slow down. When you slow down in the food cost world it is costly. Back in the day I cut my teeth as a receiver, F&B cost control clerk and ultimately an F&B cost controller. Here is my top 10 list of food cost control strategies you can either put in place, re-commit to doing, or ask yourself why it is not already being done.😊 Shop Around Check Your Receiving Lock it Up Menu Costings Embrace Contribution Margin Separation of Duties After Hours Invoice Approval ...
Hospitality Financial Leadership: The Ultimate Hotel P&L
David Lund | October 28, 2019
By David Lund I know a lot of people have some confusion and a slight frustration when it comes to the financial information that’s available in a hotel and the way it’s presented. The 11th edition of the Uniform System of Accounts for the Lodging Industry (USALI) is rock solid in its acceptance and use in our industry for those who know about it and choose to use it. But what if there is a better way to look at the financial information that helps operators see their results (and better still their budgets and forecasts) in a different light? A light that shines on the various different levels of profitability by business type. ...
Sonnenblick-Eichner Company Arranges $13,750,000 of Construction and Interim Financing for L’Horizon Resort & Spa, Palm Springs, CA
Sonnenblick-Eichner Company | October 23, 2019
Beverly Hills, CA (October 23, 2019) -- Sonnenblick-Eichner Company has arranged $13.75 million in construction and interim financing for the world-renowned L’Horizon Resort and Spa, a full-service, luxury resort located in Palm Springs, CA. The five-year LIBOR-based loan provides funds to refinance the existing debt on the 25-room resort as well as for the ground-up construction of an additional 24 bungalow-style guestrooms on an adjacent parcel. Widely considered one of the premiere destinations in Palm Springs, L’ Horizon Resort and Spa was ranked #1 Resort in the United States in 2018 and #2 in the world in 2019, according to Co...
Avison Young Announces Recent 2019 Closings
Avison Young | October 10, 2019
ATLANTA –October 9, 2019 – Avison Young Hospitality Group announced that the firm recently closed several hotel transactions. A full-service hotel in Memphis, a Hyatt Place in Augusta GA and a Marriott hotel in Lancaster PA. The firm has 35 other transactions totaling 622 million dollars under sale agreement with expected closings throughout the 4th quarter 2019....
Hospitality Financial Leadership: How to Use 21-Point Flow Thru Inspection
David Lund | October 7, 2019
Just like your auto mechanic checks your car’s health you can completely review your hotel’s financial performance and get a clear reading on as many as 21 different flow thru performance points. Further to that you can even see what you need to do in most cases to correct the results! It’s what I call super revealing. And, the best point is you don’t need anyone’s help to do it because I’m going to give you the list! Flow thru is an essential concept to understand. If you are new to the idea read, my blog on flow first. https://hotelfinancialcoach.com Checking performance is a step-by-step exercise and we start at the most vit...
OYO Announces Partnership With Biz2Credit to Provide Small Business Financing Options to Hotel Owners
OYO Hotels and Homes | October 3, 2019
NEW YORK, NY, October 3, 2019 – OYO, the world's third-largest and fastest-growing chain of hotels, homes and spaces*, has partnered with Biz2Credit, a leading online financing resource for small businesses, to provide working capital and commercial real estate loans to existing and potential hotel partners across the United States. The partnership with Biz2Credit will aid its efforts to provide hotel owners with fast financing efficiently for a wide range of purposes, including renovation, redesign, infrastructure upgrade and investment in technology for improved revenue management and operations. “We are excited about partnering with...
Hospitality Financial Leadership: Global Food Cost vs Tracking Individual Outlet – Pros and Cons
David Lund | October 1, 2019
What is really important to realize is the food cost calculation in your hotel will always come back to the cost of goods formula. Any attempt to track and individualize the outlet food cost that I have ever seen is a big waste of time. It is a waste of time because it always comes back to the fact that the food cost is calculated by adding the opening inventory to the purchases and then subtracting the closing inventory – as well as any legitimate credits at month end – to calculate the food cost. This is never done in hotels by outlet simply because it is completely inefficient to do so. What I see time and time again is people tryin...
Hospitality Financial Leadership: Creating and Using Staffing Guides
David Lund | September 16, 2019
By David Lund In our business it is no secret that labor is our single biggest expense. Last year the average hotel in North America, according to data collected from thousands of medium- and full-service hotels by a popular industry partner, was right around 50 percent of total revenues. What is a secret is how most hotels manage their largest cost. In this piece I am going to talk about creating and using a staffing formula for all scheduled positions. In addition, I will talk about the best practices as it relates to having and using staffing guides. First of all, let’s define what a staffing guide is and what constitutes a staf...
Hospitality Financial Leadership: Creating Agreements vs. Having Expectations
David Lund | September 10, 2019
There is a popular saying in American spurned on by the slogan for a doughnut and coffee chain, "America Runs on Dunkin’." In this piece I am going to write about another thing that our western culture runs on even more than coffee and doughnuts, and that’s expectations. And just like coffee, and especially doughnuts, expectations are really bad for you. You are probably thinking I am nuts even creating the title Creating Agreements vs. Having Expectations. It sounds kind of Pollyanna. But I want to encourage you to read on. This is my second article on this topic, and I am especially passionate about showing you the distinction betwee...
Sonnenblick-Eichner Company Arranges First Mortgage Financing for Post Ranch Inn, Big Sur, California
Sonnenblick-Eichner Company | September 10, 2019
Beverly Hills, CA (September 10, 2019) – Sonnenblick-Eichner Company announced today that it has arranged first mortgage financing for the Post Ranch Inn, an iconic 39-room, full-service, luxury resort located in Big Sur, CA. The 10-year, interest-only, non-recourse loan has a fixed interest rate of 3.29 percent. The credit spread was sub-120 basis points. Overlooking the Pacific Ocean from the cliffs of Big Sur, Post Ranch Inn is internationally recognized as one of the finest destination resorts in the world. Situated on approximately 90 acres, the property features 39 guestrooms in 27 buildings, a spa, two cliff-top infinity-edge p...
Townhouse Hotel Miami Beach Builds Flexible Ownership Reporting With Aptech’s PVNG
Aptech Computer Systems, Inc. | September 10, 2019
Easy Upgrade from Profitvue® to PVNG Adds Multi-Property Cloud Accounting, Versatile Reporting for Excel and PDF PITTSBURGH, September 10, 2019 – Aptech Computer Systems, the industry standard for hospitality financial systems announced the Townhouse Hotel Miami Beach implemented the PVNG Enterprise Hotel Accounting System to move its back office to the Cloud for multi-property accounting. Townhouse Hotel Miami Beach is minutes from downtown Miami and combines modern design and authentic hospitality that make it an ideal retreat getaway. Aptech is an IBM Premier Solution Provider as well as a Prophix Premier Business Partner offering we...
Hospitality Financial Leadership: Employee Benefits Reporting on Your P&L
David Lund | August 26, 2019
When it comes to payroll we are not just paying the cash wages. We have additional dollars that are substantial in the form of supplemental costs and employee benefits. So, what we want to have are three areas we can see and analyze in our financial statements: Cash wages Auxiliary wage costs – “supplemental” Employee benefits Before I get into how to set these up and record them let’s define what needs to go into each bucket. Cash Wages They are by far the most straight-forward. They include wages paid because of work being performed to all hourly and salaried positions. I wrote two separate detailed articles on ho...
Why There Is More Than Just Analyzing RevPAR Index
HotStats | August 19, 2019
By Laura Resco Financial performance in the hospitality industry is traditionally measured in absolute terms: actuals for the relevant KPIs are compared against their budgeted numbers and, from this assessment, action plans are developed to correct course when needed. Moreover, in the presence of changes in market conditions, budgets are revised to make goals reflect the new business environment. This absolute method measures a hotel’s performance against a backdrop of external factors. And although this knowledge is crucial, it by no means suffices to grasp the entirety of an operation’s financial health. The relative method, on th...
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