Sonnenblick-Eichner Company Arranges $46,000,000 of First Mortgage Financing for Maison Dupuy, New Orleans, Louisiana
Sonnenblick-Eichner Company | August 13, 2019
Finance
How Turning to Benchmarking Can Stave Off Financial Ruin
HotStats | September 1, 2020
When the winds of crisis whip, and a hotel’s cash begins flying away, it’s easy to panic. During a crisis, it might feel like the whole market has been pulled out from under you. However, there is hope even in the worst financial crisis. With hotel benchmarking, it’s possible to fight off financial ruin, even in the middle or during the aftermath of financial turmoil. Wondering how? In this article, we dive into ways hoteliers can use benchmarking to keep a hotel out of the red and steer operations to long-term profit amid a nightmarish market. First, What Happens During a Financial Crisis? Every financial crisis will be diff...
Federal Per Diem: Fiscal 2020/21 & Historical Trends
Chelsey Leffet | September 1, 2020
By Chelsey Leffet Government per-diem rates are set for a number of locations, many applying to multiple regions or localities in each state. A per-diem rate is made up of three components: a lodging allowance, meals allowance, and incidental expense allowance[1]; however, this article and the data presented below focus solely on the lodging allowance. The per-diem lodging rates, which provide a maximum amount that a federal traveler can reimburse, are based on the costs of mid-priced hotels, and are set annually by the U.S. General Services Administration (GSA). The following article examines the per-diem trends of the top lodging markets...
Why Professional Asset Management Adds Value to Hotel Investors?
Ajay Mehtani | August 24, 2020
By Ajay Mehtani & Dipti Mohan The role of a professional Asset Manager has traditionally been underplayed in India, even though the expertise brought in by a quality Asset Manager can yield great results for Investors. This is already a proven fact in several mature markets where Hotel Investors extensively use their services. The role of the Asset Manager has become even more crucial in the current times of uncharted waters. How do professional Asset Managers add value to Hotel Investors? Asset Managers work with owners to maximize the asset value and potential by optimizing operational efficiencies to deliver better ROI. ...
The Owner’s Obligation – Cash
Robert Mandelbaum | August 17, 2020
By Robert Mandelbaum The COVID-19 virus has had an extreme negative impact on the U.S. lodging industry. According to CBRE’s June 2020 edition of Hotel Horizons®, lodging demand in the U.S. will decline by 37.0 percent in 2020. This will cause a 38.0 percent drop in the national occupancy level, along with a 22.5 percent fall in average daily room rates (ADR). The net result is a projected 51.9 percent fall off in revenue per available room (RevPAR) for the year. Using historical data from the CBRE Trends® in the Hotel Industry database of operating statements, the most likely consequence of a 51.9 percent RevPAR decline is a G...
HFTP Offers New Digital Format for the Uniform System of Accounts for the Lodging Industry (USALI), 11th Revised Edition
HFTP | August 4, 2020
Hospitality Financial and Technology Professionals (HFTP®) has just released a new format for the USALI, 11th revised edition: a digital version that is available through a subscription service. The popular guide is widely used internationally and its primary purpose is to offer operating statements formatted to provide hotel owners, managers and other interested parties with operational information pertinent to the lodging industry. The USALI was first published in 1926 and is currently in its 11th edition. The subscription will make it easy to access on multiple digital devices. "In 2018, HFTP purchased the copyright to the USALI with t...
MGM Resorts International Reports First Quarter Financial and Operating Results
MGM Resorts International | May 5, 2020
The health and safety of our employees, guests, and communities are our top priority The Company has proactively reduced its cash outflows to $270 million per month during closures, excluding MGM China and MGP, and is well-positioned given its strong liquidity and recent $750 million senior notes offering Sports Betting, Japan and Macau remain priority long-term strategic initiatives LAS VEGAS, May 5, 2020 -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended March 31, 2020. "The year started strong with results ahead of expectations, however the ...
Wyndham Hotels & Resorts Reports First Quarter 2020 Results
Wyndham Hotels & Resorts | May 5, 2020
Company Completes Amendment to Credit Facility Waiving Covenant Testing until Second Quarter of 2021 PARSIPPANY, N.J., May 5, 2020 -- Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended March 31, 2020. Highlights include: Diluted earnings per share increased 5% to $0.23, and adjusted diluted EPS decreased 4% to $0.50. Net income was $22 million for the first quarter, a 5% increase over the prior-year quarter; adjusted net income was $47 million, an 8% decrease over the prior-year quarter. Adjusted EBITDA decreased 4% compared with the prior-year quarter, to $107 million. System-wide roo...
Access Point Financial Launches “Navigating Hospitality Finance 2020” Information Resource for Hoteliers Facing Changing Market Conditions
Access Point Financial | April 22, 2020
Recognized hospitality lender addresses the rapidly evolving financial landscape with new blog series to provide best practices for hotel industry stakeholders ATLANTA - April 22, 2020 – Access Point Financial, LLC (APF), a leading direct lender and specialty finance company focused exclusively on the hospitality industry, today announced the debut of a new online resource entitled, “Navigating Hospitality Finance 2020,” which will appear within the Access ViewPoint blog beginning today. The informative four-part series is intended to help hotel owners and investors with an interest in hospitality to plan their best financial strateg...
Hospitality Financial Leadership – Should I Develop a Detailed Budget and Monthly Forecast?
David Lund | April 20, 2020
By David Lund The simple and only answer is yes, you should. Without these tools you are flying in the dark and sooner rather than later you are going to run into a mountain. In my opinion if you are running your hotel business without this and you think that is okay then you are simply irresponsible. If you are thinking it is too complicated or only for the big kids, well, you are wrong again and this recap will be an eye opener for you. This piece is about a client of mine and how we worked to develop these tools, and how they are helping him manage his business as proactively as possible during this crisis. As he recently called it, ...
Access Point Financial Secures $9.2 Million Loan for Delta by Marriott, Green Bay
Access Point Financial | April 6, 2020
Recognized leader in hospitality-focused lending completes full loan funding in just 15 days amid coronavirus outbreak GREEN BAY, WIS. - April 3, 2020 – Access Point Financial, LLC (APF), a leading direct lender and specialty finance company focused exclusively on the hospitality industry, today announced the completion of an agreement with Lodging Opportunity Fund REIT (LOF REIT) to refinance the Delta by Marriott in Green Bay, WI. LOF REIT worked with Access Point Financial to secure a $9.2 million loan on the property. The REIT chose APF as its lending partner due to the company’s ability to be nimble when working with a limited...
COVID-19 and Hospitality: 7 Alternative Ways to Cut Costs and Save Your Business…BEFORE Resorting to Layoffs
Nicole Dehler, Vice President of Product Management | March 26, 2020
By Nicki Dehler The hospitality industry is entering uncharted territory. As concerns surrounding the continued transmission of COVID-19 continue to mount, we find ourselves isolated in our homes, unsure of when this pandemic will pass. What does the future hold for our communities? Moreover, what will this crisis mean for those businesses who have ceased operations due to recent recommendations and mandates for complete shutdowns? There is no denying that from a business perspective, travel and hospitality have taken the brunt of the pandemic’s economic impact. Hotels and airline companies have suffered unprecedented losses as escala...
Hospitality Financial Leadership: What to Do in a Financial Crisis
David Lund | March 9, 2020
By David Lund A lot has been said about the flu outbreak and the devastating effects it will have on the travel and hotel industry. But what can you do about it? The old saying, “You can’t save your way to prosperity,” still holds true, but you can be the best of class when it comes to being the least affected. Occupancy and rates are going to fall, they always do. The question is, where will the market go and how can we keep our REVPAR index? I’ll leave that piece for the revenue and marketing pundits. Here is a list of the top 10 things you can do today to mitigate the financial tsunami that’s coming. I have lived and manage...
Access Point Financial to Finance Hitalk Hotels’ Acquisition of Hyatt Place Mohegan Sun in Connecticut
Access Point Financial | March 5, 2020
Leading hospitality industry lender selected to finance hotel acquisition near the famed Mohegan Sun Casino in Uncasville, Connecticut ATLANTA – March 5, 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 Hitalk Hotels to provide financing for the company’s acquisition of the Hyatt Place Mohegan Sun in Uncasville, Connecticut. Access Point Financial provided $10.1 million in financing for the acquisition of the property, which will be managed by Aimbridge Hospitality. The hotel is expected to now undergo a ren...
How to Control Payroll for Better Profit
HotStats | February 24, 2020
For hoteliers and investors, it’s easy to be dazzled by revenue numbers. Unfortunately, when labor costs jump, revenue can quickly disintegrate. This is why getting a grasp on payroll data is at the heart of driving profit. Rising labor costs have put a fright into even the most seasoned of hoteliers. And there's reason for concern: Not accounting for payroll can eviscerate profit. Consider how U.S. hotels performed in the third quarter last year. Total revenue (TRevPAR) jumped across the board, but had trouble filtering down to the bottom line. Why? Hotels were hit by a 3.7% year-over-year increase in labor costs. The good n...
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 ...
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