There are individuals and companies with the resources to buy and hold onto a promising hotel, and ride out the tough economy.

Knowing which properties have potential and which are likely to be good long-term bets, takes expertise, experience and judgment.

Of course, the first consideration is always location. Is it a solid business location that, in a good economy, is always going to draw business travelers? The answer to this question is not always obvious and usually requires an intimate knowledge of the community. A downtown area may have been strong for years, but may now be deteriorating as businesses move to the suburbs. An area that appears weak may be targeted by the city for major economic development programs.

Or there may be unique considerations. One of our current matters involves a hotel in what appears to be a stable suburban business district. However, a significant number of its rooms had historically been booked by executives and visitors of a large international corporation located in an office building across the road. That company recently moved and bookings dropped dramatically. Whether that office space is filled with another large corporate tenant, or a series of small businesses - or remains vacant for ...