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RevPAR Is Only One Piece of the Picture

David Eisen | May 17, 2019

By David Eisen Imagine you're scouting a young baseball player or footballer—someone experts have pegged as the next Derek Jeter or Lionel Messi. You can't, however, just take their word for it; you have to see their performance for yourself and also dig into the numbers—into how they rate statistically. Now, imagine you are only allowed to consult one statistic, such as batting average (hits divided by at-bats) or goals scored. Then, imagine that within this context, our Jeter heir apparent is hitting a more-than-respectable .315, and our Messi-to-be is his team's leading goal scorer. Great news, right? Well, yes and no. ...

Sam Moon Group Begins Construction of Hyatt House in North Houston’s Metropark Square

Sam Moon Group | May 17, 2019

DALLAS – May 17, 2019 – Sam Moon Group announces the commencement of construction for a Hyatt House extended stay hotel at the Metropark Square mixed-use development in Shenandoah, Texas. The 5-story, 148-room hotel is slated to open in November 2020. The hotel developer is Sam Moon Group; contractor is VCC and architect is Type Six. The senior lender for the project is Veritex Community Bank and Bedrock Group raised EB-5 Funds for the construction of the Hyatt House Metropark Shenandoah/The Woodlands. "We are excited for the closing of financing and to begin construction with our partners VCC on Hyatt House Metropark Shenan...

How to Add Value to Your Hotel Asset

Carrie Russell | May 16, 2019

By Carrie Russell At the most basic level, the value of a hotel is based on the property's net income divided by a capitalization rate. As such, one has two possible levers to adjust as a means of increasing a property's value: either increase the property's net income or decrease the capitalization rate. The capitalization rate, which is a factor that represents both the risk and the desired return associated with a given asset, is in actuality difficult to influence. Firstly, returns are market driven, which means that the capitalization rate is determined by market forces, not the will of owners. Secondly, it is the buyer's perceptio...

RevUp Revenue Management Consulting

May 16, 2019

RevUp Revenue Management Consulting in conjunction of RLS Revenue Consulting is a innovative hospitality and revenue management consulting firm, providing professional services to hotel and resort owners. Focused on adding value to owner's investments and transforming underperforming assets into greater success. RevUP Revenue Management offers a complete list of consulting services and we tailor our packages property-specific. Our experienced group provides an unbiased analysis of asset performance; including in-depth financial review and budget planning. We focus on revenue enhancement, improving market share and re-positioning the...

How Modular Construction Is Changing Commercial Real Estate

JLL Real Views | May 15, 2019

Regions across the U.S. faced their snowiest, coldest and warmest February in history this year, with volatile weather disrupting the flow of life across the country. That included construction projects. Yet there was one setting where the unpredictable winter didn't slow down work — the vast indoor spaces where firms have increasingly been creating homes, offices and hotels. The method of modular construction — where pieces of buildings are manufactured in one place, and then delivered to construction sites for assembly — has boomed in recent years. The business in the U.S. has doubled in size to US$8 billion over the...

Hard Rock International Partners With ASG for €200 Million New Hotel in Barcelona

Hard Rock International | May 15, 2019

May 15, 2019 – Hard Rock International continues growing its European hotel portfolio, announcing the development of Hard Rock Hotel Barcelona. The brand is set to bring its signature musical flair to the shores of Barcelona in a €200 million new hotel to be developed on the last available seaside plot in metropolitan Barcelona. Construction of the 504-room hotel will begin in late 2019, set to open on the shores of Barcelona in early 2022. "This is set to be another ambitious project for Hard Rock International, alongside ASG," comments Todd Hricko, senior vice president and head of global hotel development at Hard Rock Inte...

Sonnenblick-Eichner Company Arranges $21,000,000 of First Mortgage Leasehold Financing for Palihotel Seattle, Washington

Sonnenblick-Eichner Company | May 14, 2019

Beverly Hills, CA (May 14, 2019) – Sonnenblick-Eichner Company announced today that it has arranged $21 million of non-recourse first mortgage leasehold financing, on behalf of a partnership between Los Angeles based Lighthouse Investments, LLC and KCB Management, for the 96-room Palihotel Seattle. Operated by Palisociety, the hotel is located across the street from the world-famous Pike Street Market in downtown Seattle, WA. The newly renovated hotel opened in November of 2018 and the initial funding was sized to a debt yield less than 6% on the first year's projected net operating income. The five-year interim loan also provided...

Hospitality Financial Leadership: Engage Their Hearts and Minds First

David Lund | May 13, 2019

By David Lund Getting your hotel leadership team excited about accounting is like someone thinking it's fun to go to the dentist. Your average person wants nothing to do with it because they have a predisposed notion that it's yucky, boring and better left for someone who has a hard time walking and talking at the same time. What I have learned about getting your average hotel leader excited about the numbers is just the opposite. Let me explain. Hotel leaders ALL want to have the "financial where-with-all" to dazzle their peers. They know it's the secret sauce to propel their career. They all want their seat at the captain's table. Bei...

JMBM’s Global Hospitality Chairman Jim Butler Will Speak About Hotel Investment at 2019 Institutional Real Estate Forum

May 13, 2019

By Jim Butler and the Global Hospitality Group® Authors of www.HotelLawBlog.com LOS ANGELES—Jim Butler, Chairman of JMBM's Global Hospitality Group®, along with Jack Westergom of Manhattan Hospitality Advisors, will speak at the 4th Annual West Institutional Real Estate Investor Forum on June 5, 2019 in San Francisco on the topic of hotel investment. They will also conduct a roundtable discussion for investors who may be new to the hotel investment. "Many institutional investors, family offices and other sophisticated real estate investors are looking to hotels to increase investment returns. While hotel investments can of...

Wyndham Hotels & Resorts Partners With Wellworth Properties to Develop Wyndham Garden Hotel in Quezon City

May 13, 2019

QUEZON CITY, PHILIPPINES (May 13, 2019) – Wyndham Hotels & Resorts, the world's largest hotel franchising company with approximately 9,200 properties worldwide, is bringing a fresh approach to hospitality in the Philippines with the launch of the country's first Wyndham Garden hotel in Quezon City. The new-construction Wyndham Garden Quezon City, located directly opposite the ABS-CBN communications and broadcasting center in the heart of Quezon City, Metro Manila, is expected to start welcoming guests in 2021. Upon opening, this modern 25-story hotel will feature 235 sleek and stylish rooms and suites, plus an extensive selection of ...

The 2019 LIIC Top Ten — Hotel Real Estate: Mostly Sunny Days Clouded by Labor Issues

Jim Butler | May 8, 2019

By Jim Butler and the Global Hospitality Group® Hotel Lawyers | Authors of www.HotelLawBlog.com 08 May 2019 Greetings from Los Angeles and the beautiful Hyatt Regency LAX! Yesrerday, we kicked off Meet the Money® 2019 – the National Hotel Finance & Investment Conference hosted by JMBM's Global Hospitality Group® – with the LIIC Top Ten. Presented by my friend, Mike Cahill, CEO and Founder of HREC and one of LIIC's co-chairmen, the LIIC Top Ten reflects the perspectives of the industry's most active members in the hospitality market. — Jim About the LIIC Top Ten For the past 15 years, the members of the ...

Choice Hotels and Athena Hospitality Group Break Ground on Cambria Hotel Nashville Airport

Cambria Hotels | May 7, 2019

ROCKVILLE, Md., May 7, 2019 -- Cambria Hotels is doubling its Music City presence as Choice Hotels International, Inc. (NYSE: CHH) and Athena Hospitality Group, LLC, announced the start of construction on the brand's second upscale hotel in Nashville, Tenn. The Cambria Hotel Nashville Airport, scheduled to open in 2020, joins the Cambria Hotel Nashville Downtown, which opened in 2018. The 130-room hotel, located within Royal Park Owners Association at 44 Rachel Dr., offers convenient access to the Nashville International Airport as well as downtown Nashville. The Cambria Hotel Nashville Airport is less than two miles from One Centur...

Hospitality Financial Leadership: The Financial Forecast Disconnect and How to Correct It

David Lund | May 6, 2019

By David Lund When I work with hotel clients around their financial leadership it's often centered on getting the team to do their monthly financial forecast. A greater interest in doing it produces better and more consistent results. When doing financial leadership workshops and individual coaching, I inevitably discover the same thing time and time again. It's the disconnect between the executive team/director of finance part of the operation and the department line managers. In this piece I am going to explain why this disconnect exists, how to detect it and what you can do to fix it. First, why the disconnect exists. It exists becau...

How Hotel Design and Concept Development Can Benefit From Revenue Management Insights

Patrick Landman | April 30, 2019

By Patrick Landman Over the last few years we have gotten more and more involved in the businesses of our hotel clients. We have seen a clear difference in revenue and profitability in hotels where we got involved at project definition stage vs coming in at pre-opening. There are many key points that increase the revenue potential of a hotel or resort, which architects, designers and investors are overlooking. And we are not talking about pocket change. I estimate the upside by utilizing revenue management insights to be easily 10% to 25% in top line income. Just think about how much this would impact your bottom line profit. We have de...

JMBM’s Global Hospitality Group® to Host the 29th Annual Meet the Money® National Hotel Finance and Investment Conference May 6-8, 2019 in Los

Meet the Money | April 29, 2019

By Jim Butler and the Global Hospitality Group® Hotel Lawyers | Authors of www.HotelLawBlog.com April 29, 2019 LOS ANGELES—JMBM's Global Hospitality Group® will host Meet the Money® national hotel finance and investment conference May 6-8 at the Hyatt Regency LAX in Los Angeles. Now in its 29th year, this annual event will bring together hotel owners, operators, developers, consultants, investors, brands, lenders and other capital providers to discuss current developments in the industry as well as strategies for the future. "Our line-up of more than 70 speakers include top hospitality leaders who will share their expe...

Hospitality Financial Leadership: Investing in Financial Leadership in Your Hotel

David Lund | April 29, 2019

By David Lund CFO to CEO: "What happens if we invest in developing people and they leave?" CEO: "What happens if we don't and they stay?" I found this exchange in, of all places, the internet. Go figure. It's an interesting back and forth that I know plays out in many organizations. Investing in anything training related in business is tricky. Not only when it comes to the money and resources it takes, but it's also the matter of finding the appropriate training. I also believe one of the biggest stumbling blocks to creating and investing in a culture where we train and develop our leaders continually, is the ability to have it result i...

Xanterra Investing $30 Million for Rebuild of Maswik South Lodging at South Rim, Grand Canyon Slated for 2020 Opening

Xanterra Travel Collection | April 25, 2019

SOUTH RIM, GRAND CANYON — April 25, 2019 — Grand Canyon South Rim is getting a "birthday present" for its Centennial: as part of its concession contract with the National Park Service (NPS), Xanterra Travel Collection is investing $30 million to rebuild the Maswik South Lodging complex at South Rim. The existing 90 rooms, constructed in 1971, will be replaced with 120 new lodging units within four new lodging structures in the same general location. The new Maswik guest lodging is anticipated to open in Summer of 2020. The new units will greatly improve the guest experience adding new amenities to the two-story structures in...

In Revenue Management, You Can Have Good Timing AND Good Forecasting

Dan Skodol | April 25, 2019

By Dan Skodol I recently read a piece about an international resort company that introduced a Revenue Management System (RMS) within the last five years. Like many resort properties around the world, their hotels have a high degree of dependence on contracted tour business and other leisure-oriented distribution channels. Because of the long lead-time associated with forming these contracts, "timing" is a very important focus of Revenue Management as missing a contract season means missing out on bookings that are essential to their performance. This certainly makes sense. But I got lost was when the Revenue Manager stated in an intervi...

Hotel Revenue Leaders to Convene at HSMAI’s ROC Americas in Minneapolis

HSMAI | April 25, 2019

ROC Americas is the world's largest gathering of travel industry revenue professionals (McLean, VA, April 25, 2019) The Hospitality Sales and Marketing Association International (HSMAI) is convening hotel revenue professionals for two days of education, collaboration, and innovation at its ROC Americas in Minneapolis, Minnesota. ROC 2019 will be held June 18–19 and is co-located with HITEC 2019. The event is the world's largest gathering of revenue professionals in the travel industry with more than 650 in attendance. With powerful educational and networking opportunities, ROC is the must-attend conference of 2019 for learning...

IDeaS Announces 2019 Cornell Revenue Management Scholarship Recipients

IDeaS | April 25, 2019

IDeaS works to help advance the careers of six next-generation hotel revenue leaders through its ongoing scholarship program Tweet This: @IDeaS_RevOpt awards six hospitality professionals with prestigious revenue management scholarships in partnership with Cornell University www.ideas.com/news #RevenueScience #TheFutureofRM MINNEAPOLIS—April 25, 2019—IDeaS Revenue Solutions today announced the 2019 IDeaS Cornell Management Scholarship recipients. As the leading provider of revenue management software and advisory services, IDeaS works in partnership with the Cornell University School of Hotel Administration within the Corne...

St. Kitts Marriott Resort & The Royal Beach Casino Installs Aptech PVNG Enterprise Financial Accounting

Aptech Computer Systems, Inc. | April 24, 2019

Aptech Recognized as The Industry Standard for Hospitality Financial Systems PITTSBURGH, April 24, 2019 – Aptech Computer Systems announced St. Kitts Marriott Resort & The Royal Beach Casino installed PVNG Enterprise Financial Accounting system to simplify back office processes and provide comprehensive reporting. The St. Kitts Marriott Resort & The Royal Beach Casino is a 389-room luxury destination on Frigate Bay featuring nine dining outlets, the Emerald Mist Spa, and many other amenities. Aptech Computer Systems is the leading provider of business intelligence, budgeting and forecasting, and enterprise hotel accounting softw...

Hospitality Financial Leadership: Negative Flow Thru

David Lund | April 22, 2019

By David Lund One of the most read articles I have written is on the topic of flow thru and how to use it in your financial statements. Understanding flow thru is not something that comes easily to most people immediately, but once you look at it and do the calculation it usually clicks. Once it drops in place you have got it for good. To take things one step further in this piece I am going to discuss negative flow thru. Negative flow thru or retention is something that most people in North America have not had to deal with very much in the past decade. We have just crossed over a massive stretch of growth in our industry that was mark...

Premier Palace Hotel Treats Guests Like Diamonds

PHNR | April 18, 2019

Kyiv, Ukraine is a city in between. In between old and new. In between modern and classic. In between past and present. I recently returned from a balmy mid- April trip to attend CISOLAR 2019, 8th SOLAR ENERGY Conference and Trade Show of CE. Since it wasn't my first time visiting Kyiv, I decided to bring some friends. I wanted to impress them and show them the charm, elegance and European influence of Kyiv. And I think I did. We had the pleasure of staying at one of the most charming hotels in the city, the Premier Palace Hotel. The Premier Palace Hotel is part of The Kyiv Hotel Collection which boasts an impressive collection of upsca...

Can Artificial Intelligence Replace Human Intelligence in Hospitality Revenue Management?

Hotelogix | April 18, 2019

A lot has been said in the recent past about revenue managers and artificial intelligence and whether revenue managers in hospitality need to panic about being replaced by AI-driven tools, and so on. Can a revenue management tool ever actually replace the human intelligence that a hospitality revenue manager brings to the table? I feel we need to dig a little deeper and explore a few related concepts, which could help us get a better grasp of ideas like AI replacing humans in revenue management in the near future. It is, no doubt, a sensational debate, but we hope to discuss the finer details of why this debate is premature and how. The...

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