Finance

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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...

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...

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