Sonnenblick-Eichner Company Arranges $46,000,000 of First Mortgage Financing for Maison Dupuy, New Orleans, Louisiana
Sonnenblick-Eichner Company | August 13, 2019
Finance
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...
Hospitality Financial Leadership: Top 10 Hotel Budget Review Tips
David Lund | August 19, 2019
By David Lund When you are reviewing a hotel budget you want to ask the right questions—the ones that will yield the biggest treasure. You see, the game of budgets in most hotel companies where the corporate or regional master needs to approve the plan before it is presented to the owner, is a game of under promise now and hopefully over deliver next year. Some people I know call this the practice of sandbagging. It is not mean or deceitful, rather it is a game. If you are asleep at the switch when you are doing the review, well, that is your problem. Operators are always looking for items they can keep in their back pocket for the...
Sonnenblick-Eichner Company Arranges $46,000,000 of First Mortgage Financing for Maison Dupuy, New Orleans, Louisiana
Sonnenblick-Eichner Company | August 13, 2019
Beverly Hills, CA (August 13, 2019) -- Sonnenblick-Eichner Company announced today that it has arranged $46,000,000 of interim first mortgage financing for the Maison Dupuy, a five-story, 200-room, full-service, boutique hotel located in the world-famous French Quarter of downtown New Orleans, LA. Proceeds from the five-year non-recourse LIBOR-based loan will be utilized to pay off the existing indebtedness and provide funds for the renovation of the property. The Hotel is excellently located just two blocks off of Bourbon Street at the corner of Toulouse Street and Burgundy Street. The French Quarter is the center of New Orleans’ hospit...
Hospitality Financial Leadership: Subsidizing Your Company, Association Meeting Costs / David Lund
David Lund | August 5, 2019
By David Lund In my recent travels working with clients and delivering keynotes as well as financial leadership workshops for management teams and hotel associations, I noticed an interesting way that more than one client used to “subsidize” their meetings—reducing their costs—and I wanted to share it with you. Having your regional meeting, national meeting or hosting your association event is expensive. There are travel costs, perhaps speaker fees and venue costs. Depending on the type of event there can be accommodations, meals, audiovisual and meeting room rentals. For companies, there is also lost productivity cost associate...
Hyatt Reports Second-Quarter 2019 Results; Net Income Increased 10.6% to $86 Million
Hyatt Hotels Corporation | August 1, 2019
Strong transient demand drove 1.3% system-wide RevPAR growth, and fees and net rooms grew at a double-digit pace inclusive of the Two Roads Hospitality LLC acquisition. Second quarter of 2019 financial highlights as compared to the second quarter of 2018 are as follows: Net income increased 10.6% to $86 million. Adjusted EBITDA decreased 2.1% to $213 million, a decrease of 1.0% in constant currency. Comparable system-wide RevPAR increased 1.3%, including an increase of 2.3% at comparable owned and leased hotels. Excluding the negative impact from the timing of the Easter holiday, comparable RevPAR at system-wide hotels and compar...
Creating a Financially Engaged Team: What to Avoid
David Lund | July 29, 2019
By David Lund Creating a financially engaged leadership team takes time, commitment, respect for fair play, resources and a sense of adventure. When creating something new, for me there was always an element of the unknown. In writing my book, it occurred to me that if I had a book like this 25 years ago, some of the guesswork would not have existed. The adventure however always remained and that was the great part about embarking on a mission that had a team working together in an attempt to score big. But, I was cognizant that when working with people, I was the example that got watched, yes, everything I did was watched. It was cl...
What Is “Hospitality Financial Leadership Anyway?”
David Lund | July 1, 2019
By David Lund This is a question I have been asked many times. Exactly what is financial leadership and why hospitality? Finding the three words together “HFL” in a sentence three years ago was not possible. I know because I tried to google them and came up with a bunch of leadership consultants and courses. Even the words “financial leadership” revealed surprisingly little. Some tidbits about CEO’s and their role but nothing any broader. Financial leadership is in my opinion the cornerstone of any manager, executive or leader’s business acumen. It enables the individual to see the importance of being plugged into the strate...
Rainmaker VP to Participate in Panel Discussion at HSMAI ROC
Rainmaker | June 13, 2019
ALPHARETTA, GA. — June 13, 2019 — The Rainmaker Group today announced that Dan Skodol, the company’s vice president of revenue analytics, will participate in a panel discussion at HSMAI’s Revenue Optimization Conference, which will be held June 18-19 at the Minneapolis Convention Center in Minneapolis, MN. The company is a Platinum Sponsor of the event. Skodol will take part in the panel discussion entitled, “Think Differently About Revenue: Building a Better Room Merchandising Plan.” In this session, a group of industry professionals will discuss potential benefits of dynamically yielding at a granular, room type level. They ...
IDeaS Celebrates 30 Years of Innovation, Revenue Transformation and Global Momentum at HITEC 2019
IDeaS | June 13, 2019
Following a wave of unprecedented growth and major client wins, IDeaS continues worldwide, multi-vertical expansion plans Tweet This: @IDeaS_RevOpt is turning the big 3-0 and never felt better. Join us at HITEC and ROC on our home turf of Minneapolis—we have a lot to celebrate. www.ideas.com/news #RevenueScience #30YearsYoung MINNEAPOLIS—June 13, 2019—HITEC Booth #1415 (Minneapolis Convention Center)—IDeaS Revenue Solutions, the world’s leading provider of automated revenue management software and services, will showcase its cutting-edge revenue science technology products at the Hospitality Industry Technology Exposition ...
ProfitSword and WVC RubixCloud Partner to Provide Hotels With Comprehensive and Seamless Business Intelligence and Financial Accounting Platform
ProfitSword, LLC | June 12, 2019
In-depth integration provides both single properties and entire hotel portfolios with ability to ensure full data integrity between accounting and business intelligence systems. ORLANDO, Fla. – (June 12, 2019) – ProfitSword, a leading provider of Business Intelligence solutions for the hospitality industry and WVC RubixCloud (WVCRC) providing best-in-class technology and accounting services, have partnered to create a comprehensive data management and accounting solution that provides key financial and operational benefits for the hospitality industry. The integrated solution is designed to allow a single hotel or an entire portfo...
What Is TRevPAR (Definition and Why It Matters)?
David Eisen | June 10, 2019
By David Eisen In a previous blog post, I took aim at RevPAR. My pursuit: to puncture the long-held notion that it’s the most exemplary data point to consult within the hospitality industry. And, according to one comment, I succeeded in doing so (thank you, Don Weintraub, you made my mother very proud). My thesis was not that RevPAR is obsolete; following it is still necessary, especially since RevPAR tracks revenue derived from the rooms department, the largest source of revenue for a hotel. It’s akin to tracking cap rates when investing in hotels—one data point but not the end-all. RevPAR (a combination of rate and occupancy) is...
TraknProtect Selected to Present Location-Based Employee Security Platform During Entrepreneur 20X (E20X) Competition at HITEC 2019
TraknProtect | June 10, 2019
The pioneer of employee safety button technology chosen to participate in annual startup competition and showcase at the launch of HITEC Minneapolis 2019 Minneapolis – HITEC Booth #3017 – June 10, 2019 – TraknProtect, a leading provider of real-time location technology purpose-built for the hospitality environment, has been selected by HFTP (Hospitality Technology Financial Professionals) to present its award-winning solution during the Entrepreneur 20X (E20X) competition at this year’s HITEC Minneapolis on June 17, 2019. During E20X, selected companies prepare and deliver four-minute presentations which are then judged by a panel...
Hospitality Financial Leadership: Conducting Financial Operations Reviews
David Lund | June 10, 2019
By David Lund Hands down one of the best experiences I ever had in my career was being part of the team that reviewed the financial performance of the hotels in my region. The reason I enjoyed it so much, and have such great memories, is because I learned so much at each one and not only did I learn about the business of hotels, I had a lesson in people. The review team consisted of my boss, the hotel GM, the hotel Controller and me. In addition to the four of us, one by one the other executives or department heads would be in attendance or be called when it was their turn to review their area. The examination was a low-tech event. No P...
MSD Partners Closes Sale of 1,047-Room Boca Raton Resort & Club From Blackstone Group for $461.6 Million
MGM Resorts International | June 10, 2019
Jeff Ostrowski | The Palm Beach Post, Fla. June 07--In the biggest property sale in Palm Beach County history, the Boca Raton Resort & Club sold this week for $461.6 million, according to deeds made public Thursday. A company affiliated with billionaire Michael Dell announced in April that it would buy the iconic club from Blackstone Group, but the buyer and seller didn't disclose the price at the time. Dell's MSD Partners is the new owner of the 1,047-room hotel. Dell himself visited the hotel several times from 2000 to 2004, when the Boca Resort hosted annual meetings of The Business Council, an organization made up of the heads of th...
Pebblebrook Hotel Trust to Sell LA’s 132-Room Hotel Amarano Burbank for $72.9M
Pebblebrook Hotel Trust | June 3, 2019
BETHESDA, Md.-- 6/3/2019 -- Pebblebrook Hotel Trust (NYSE: PEB) (the "Company") today announced that it executed a contract to sell the 132-room Hotel Amarano Burbank in Los Angeles, California for approximately $72.9 million to a third party. The contracted sale price reflects a 15.8x EBITDA multiple and a 5.7% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues) based on the hotel's operating performance for 2018. Based on the trailing 12-month period ended March 2019, the contracted sales price reflects a 16.9x EBITDA multiple and a 5.3% net operating income capitalization ra...
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