Library Archives

 
Chris Hurn

With economic fallout from the COVID-19 pandemic numbering nine times greater than the 9/11 attacks, the PPP recovery loan program has become a lifeline for the hospitality industry. However, due to shifting criteria, the complexities of PPP can be difficult to understand. Chris Hurn, founder and CEO of nonbank lender Fountainhead Commercial Capital breaks down the basics of the program and what hoteliers should expect from the proposed PPP extension. READ MORE

Harry Spirides

The U.S. hotel industry has been blindsided by the COVID-19 Global Pandemic Black Swan Event. Instantly, hotel owners have found themselves with empty hotels, depleted cash reserves, and wondering how they will be able to make their monthly mortgage and utility payments along with payroll which were hardly ever considered to be a problem in the expansionary period leading up to COVID-19. Struggling hotel owners today have many financing strategic options available to them, but many do not even know that these options exist. Hotel industry financier Harry G. Spirides outlines some of these options for them in this article. READ MORE

Gavin Davis

Understanding the macro-environment and being ahead of the curve (i.e. before the data provides hard evidence of such in hindsight) in such capacity provides owners and managers the ability to most timely make important decisions that impact profitability and asset valuation. Are you a hotel builder? We look at how purchasing lumber in the middle of an economic slowdown can be advantageous to the future success of your hotel development and investment. Buy Right, Build Right, Manage Right. READ MORE

Gavin Davis

Is it time to start preparing for an upcoming recession? In January 2018, the NYC Restaurant Personnel index read 0.50%, with the Recession indices not evidencing much rising risk of recession. Since May 2018, the NYC Restaurant Personnel index, continuing its decline has remained in negative territory. In this article we review recent U.S. Treasury yield curve flattening and inversion compared to prior UST inversions as one harbinger of potential economic weakness, and compare that to a simpler metric of changes in full-service restaurant personnel in New York City and its own coincident indication of broader economic strength or weakness. READ MORE

J.Carter Allen

This article focuses on specific market analysis and data applicable to the development and operation of dual-branded hotels. Much has been written about the dual-brand concept over the last several years, particularly related to the asset type’s benefits and challenges. Instead of providing another such piece that rephrases the same concepts in different ways, this article will focus on data collected from our work with dual-branded hotels over the last several years. While a review of the history of dual-branded hotels and some basic concepts are necessary, this article will hope to provide new data and prove, or disprove, some commonly accepted themes related to dual-branded hotels in the United States. READ MORE

David Chitlik

The value of Real Estate Investment Trust (REIT) status can't be overstated. By meeting quarterly asset and income tests, REIT dividends can pass through to investors without running a federal corporate income tax gauntlet. It's the reason for REITs in the first place. It's why Ashford Hospitality Trust owns more than 25,000 rooms, and why Apple Hospitality REIT owns 236 hotels operating under Marriott or Hilton flags. And why Hilton recently split into Park Hotels, owners; and Hilton, managers. READ MORE

David Lund

In the hotel business, we have three pillars, the guests, the colleagues and the money. They're not equal. There not equal because we ignore the third pillar and we do so at our own peril and out of ignorance to what we can do to manage this cagey and slippery bugger. This article will show you what's possible and point to a fantastic model that has your owner happily paying for the whole deal. It's no longer acceptable to throw our hands up in the air and say the numbers are the accounting departments responsibility as if the rest of us are 5-year old's without a clue what to do. If your one of those it's time to move and get some financial leadership game on. READ MORE

Daniel B. Lundy

Need funds to build a new hotel? A once little-known U.S. immigration program has become a popular source of development funding for hotels. Known as the EB-5 Immigration program, name brands, such as Marriott and Hilton, have projects that have been financed through EB-5. Because of the flexibility that EB-5 funding offers, it is likely that it will remain a significant funding tool even as credit markets loosen, due to its highly competitive cost as mezzanine financing. For savvy developers who are able to navigate the bureaucratic landscape, the EB-5 program is likely to remain a viable funding option for many years to come. READ MORE

Nitin Shah

Is your next purchase a "must have" or is it a "nice-to-have" splurge? That's often a psychological struggle - as well as a financial one - whether we're ordering a restaurant dinner or buying a new car. "Need" versus "want" is also the dilemma at the core of discussions currently underway in the hotel industry, as franchisors issue mandates to renovate properties and franchisees find ways of funding these upgrades in today's economic environment. My column examines this debate - and offers some potential solutions. READ MORE

Marky Moore

Smart hotel property owners are taking advantage of the growing list of incentives available for energy efficient buildings and upgrades. If you've ever considered installing energy efficiencies, you owe it to yourself to find out what rewards may be available to you through smart tax strategies; local, state and federal incentives and other funding programs such as grant and rebates. Extensive documentation and research from reliable sources is readily available to hotel owners to help ensure that your energy efficient building project has a positive impact on your bottom line along with the environmental impacts. READ MORE

Nitin Shah

"Yes" and "no." If that answer seems to be less than helpful or direct, it's because the question is not as simple as it seems - it raises complex issues that you need to consider carefully before deciding to build, to buy, or to buy and renovate. Some are obvious trends, while others are more subtle nuances. My column examines a variety of the topics that affect a hotel's profitability in today's marketplace. By the time you're done reading, you'll be better able to decide for yourself whether we as hoteliers can ever make money again! READ MORE

Marky Moore

In the age of "green" building, property owners have become aware of the savings in energy costs that can be realized by building and renovating for energy efficiency. What you may not know is that there are potentially significant tax benefits available to hotel property owners who follow the sustainability trend. Find out how one Arizona resort sought the advice of energy efficiency professionals to successfully cut their HVAC operating expenses, and how you can develop a strategy that may result in a tax deduction for improvements to your lighting system, HVAC system or building envelope. READ MORE

Nitin Shah

The crisis in our economy and the banking industry has focused renewed attention on four banking realities that directly impact hoteliers - and limit the availability of funds for hotel funds: 1. Hotel loans are classified as "special purpose", 2. Hotels are classified as "commercial real estate", 3. "Mark to market" financial regulations reduce asset value, and 4. The FDIC policy on "loss-sharing" agreements encourages unnecessary and avoidable foreclosures. My column examines how these procedures are detrimental to the country's 51,000 hotels - and why leaders in hospitality and banking, including me, are working actively to change them. READ MORE

Marky Moore

Hotel owners may look to strategies designed to increase bookings, revamped marketing campaigns or cutting expenses in order to grow their business and see more profits. What many hotel owners don't realize is that undiscovered cash flow may exist within their own property, if they know how to find it. The application of a cost segregation study may significantly reduce the hotel owner's tax liability and provide needed cash flow for other business endeavors. READ MORE

Nitin Shah

As the next generation of Asian-American hotel owners comes into leadership, should we be glad or be worried? Second-generation Asian Indian hoteliers have a great education, strong communication skills, and solid financial resources built by their first generation immigrant parents. But will their education and financial security make them too complacent and too cautious to work hard, to be bold entrepreneurs, and to match - or perhaps surpass - the business achievements of their parents? My column examines differences between first and second generation Asian-American hoteliers - and offers insight that every hospitality executive should be aware of as we work together to re-build our properties, our brands, and our industry from the recent economic recession. READ MORE

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Coming up in November 2020...

Hotel Design: Home Away From Home

With the rise of the sharing economy and the peer-to-peer marketplace for lodging options, hoteliers are re-thinking the look, feel and appeal of their locations. There is an emphasis on re-creating a feeling of homeyness - a comfortable, cozy and inviting space that feels like home. 'This is accomplished through the careful selection of furniture design, paint colors, lighting design, artwork, bathroom fixtures and textile accessories. In addition, some hotels are providing their guests with upscale amenities, such as a book and movie library, home-style kitchenettes, a coffee machine with locally-sourced beans and tea, or even a batch of fresh-baked cookies. Similarly, there is a growing design trend based on the concept of place-making. Travelers are searching for experiences that are unique and authentic to the locale in which they find themselves, and so hotel designers are integrating a sense of place into their work. This is partially achieved by incorporating traditional artisanal crafts and other local artwork into hotel rooms and communal spaces. Another design trend includes the creation of full-service, co-working environments within the hotel. Guests don't like to stay alone in their room when they need to work, so now they can go downstairs to the lobby-or up to the roof-to work among others. These areas encourage guests - and non-guests alike - to stay as long as they like and to partake of hotel amenities. Finally, recognizing the importance of the Wellness Movement, some designers are exploring how room design can increase the likelihood of deep and restorative sleep. Creating dark and quiet spaces, blocking excessive light, providing guests with a selection of different kinds of pillows, and the ability to control room temperature, are a few of the best practices in this area. These are some of the architecture and design topics that will be covered in the November issue of the Hotel Business Review.