“Hotels Lead U.S. Property Deals as Lodging Recovery Outpaces Office Demand” plus 3 more |
- Hotels Lead U.S. Property Deals as Lodging Recovery Outpaces Office Demand
- Prince George's hotels irate over new federal rates
- Making Sense of Green Certifications in Lodging Facilities | By Eric B. Hansen, AIA, ISHC
- THIS WINTER GUESTS WILL BASK IN OLYMPIC AFTERGLOW AT LODGING OVATIONS IN WHISTLER CREEKSIDE
| Hotels Lead U.S. Property Deals as Lodging Recovery Outpaces Office Demand Posted: 08 Sep 2010 09:54 PM PDT Hotel purchases are increasing faster than deals for office buildings, shopping centers or any other type of U.S. commercial property as rising occupancies and room rates boost the lodging industry. Sales of hotels jumped 136 percent in the first half of 2010 from a year earlier, the biggest gain among five commercial real estate categories tracked by New York-based Real Capital Analytics Inc. Those deals were based on transactions of at least $5 million and exclude hotels attached to casinos. A rebound in business and leisure travel is helping the U.S. lodging industry recover after last year's recession sent occupancies to a 30-year low. Hotels can boost rates quickly to take advantage of economic growth, while tenants at offices and retail properties tend to sign multiyear leases. "Hotels have already absorbed the downturn," said Richard Jones, executive vice president of acquisitions and operations at Atlanta-based developer Portman Holdings LLC. "It's not as evident what exactly the impact of this downturn is going to be for other commercial real estate." Owners of offices, shopping centers and other buildings with pre-recession leases are now signing agreements that will result in "significant cuts in rental income" said Jones, whose company develops lodging, office and retail properties. Income for hotels, meanwhile, is rising. Revenue per available room, or revpar, in the top 25 U.S. markets rose to $73.87 during the first half from $71.08 a year earlier, according to Smith Travel Research Inc. of Hendersonville, Tennessee. Occupancies climbed to 63 percent from 59 percent during the period, while remaining below 2008's 66 percent. Host Hotels, Pebblebrook Host Hotels & Resorts Inc., the owner of Ritz-Carltons in San Francisco and Phoenix, in July agreed to buy the W New York Union Square with partners including Istithmar World PJSC, and said it will purchase the Westin Chicago River North for about $165 million. The same month, Pebblebrook Hotel Trust bought the InterContinental Buckhead Atlanta hotel for $105 million in cash from InterContinental Hotels Group Plc. Hotels are inherently different from apartment buildings or other types of commercial real estate, said Lewis Wolff, co- chairman of Sunstone Hotel Investors Inc., an Aliso Viejo, California-based real estate investment trust. Because their space is rented by the night, not the month or year, hotels are a better investment than other properties during a boom and worse during a bust, he said. 'Operating Business' "It's not really real estate," Wolff said. "It's an operating business that's immediately affected by any economic change. Apartments are not daily operations. They are much closer to being actual real estate than hotels are." The vacancy rate at U.S. shopping centers rose to 10.9 percent in the second quarter from 10 percent a year earlier and near a record 11.1 percent set in 1990, Reis Inc. said in July. Office vacancies increased to 17.4 percent during the period, the highest level since 1993, according to the New York-based real estate research firm. Hotel occupancies and rates still have a long way go before recovering to their peak levels, said James Tisch, president and chief executive officer of New York-based Loews Corp., which operated 19 high-end hotels as of June. "Now we're obviously in a recovery, but in terms of revpar, we're still at 75 or 85 percent of the revpar of '07," Tisch said during an interview at Bloomberg's New York offices last month. "While the business has improved, it still has a long way to go before it gets back to where it was." Rising Profits Lodging companies have reported higher earnings, buoyed by rising demand in cities. Starwood Hotels & Resorts Worldwide Inc., the White Plains, New York-based owner of luxury brands including the St. Regis and W hotels, in July reported earnings that beat analysts' estimates and raised its revpar forecast. Marriott International Inc. of Bethesda, Maryland, the largest U.S. hotel chain, said second-quarter profit more than tripled and increased its full-year earnings forecast. In the meantime, profits are still falling for some retail and office landlords. General Growth Properties Inc., the Chicago-based U.S. mall owner planning to exit bankruptcy in October, said last month that second-quarter core funds from operations declined 17 percent after store rents dropped. Boston Properties Inc., the biggest U.S. office landlord by market value, said in July that second-quarter FFO slid 5.9 percent as rental revenue fell. The same month, SL Green Realty Corp., Manhattan's largest office owner, reported a slump in second-quarter FFO after New York tenants signed leases for an average of 4.4 percent less than previous rents. FFO is a measure of cash flow used by REITs and excludes interest, depreciation and other gains and losses. Biggest Increase Sales of hotels totaled $3.19 billion in the first six months of 2010, up from $1.36 billion a year earlier, according to Real Capital Analytics. The 136 percent increase compares with an 82 percent gain in office transactions, a 51 percent advance in apartment deals, a 37 percent climb for retail properties and a 22 percent rise in industrial property sales. By dollar volume, hotel sales trailed other property types because they are a smaller portion of the market. Office transactions, totaling $11.9 billion, led deals by value, Real Capital data show. The volume of lodging transactions remains below the record reached in 2007. A total of $78.6 billion of hotels sold that year, Real Capital said. REIT Demand REITs may be the primary buyers of hotels as they come on the market because "they are fairly well capitalized and have access to attractively priced capital," said John Arabia, managing director at Green Street Advisors, a Newport Beach, California-based real estate research company. Sunstone last month acquired Miami Beach's Royal Palm hotel in a foreclosure auction for about $117 million. LaSalle Hotel Properties, a REIT that focuses on upscale lodging, last week said it bought its first hotel in San Francisco as well as two in Philadelphia for a total of $292.5 million. DiamondRock Hospitality Co. in May agreed to buy the 821-room Hilton Minneapolis for about $155.5 million, and Host Hotels said in July it's seeking deals in the U.S., Europe and Asia. "Publicly traded REITs will be a significant buyer of hotels over the next few years," Arabia said. "It's now REITs that will have their day in sun." To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php | |||
| Prince George's hotels irate over new federal rates Posted: 08 Sep 2010 05:56 PM PDT Wednesday, Sept. 8, 2010
n'Nobody's happy,' says Beltsville executiveby Lindsey Robbins | Staff Writer Prince George's hoteliers are concerned about new, lower rates set for federal employees staying at their hotels. The General Services Administration last week released new per diem rates for fiscal 2011, which vary by county. Several of the revised limits reduce the rates from last year, especially in the Washington, D.C., region, including Prince George's and Montgomery counties. The rates for some areas in the region have been cut $26. The new ranges are $157 to $211 versus $170 to $229 previously. "We know how everyone cries about wanting the government to cut spending. Here's a prime example of that, and it's going to affect everyone," said Steven Mayers, general manager of Radisson Hotel Largo. "If a hotel spends a lot of room nights on government workers, it will hurt them more." Radisson, which has about 184 rooms, sees its share of federal workers, especially with its proximity to an Internal Revenue Service building, Mayers said. Less impact is expected at the Country Inn & Suites in Capitol Heights, which has 69 rooms and caters to federal workers about once a month, said P.M. Menpara, general manager. He said most of the hotel's clientele is local. The GSA sets the rates by using Smith Travel Research's assessments of average daily rates and then lopping off 5 percent. Areas not given specific rates use the national standard of $77, up from $70 in fiscal 2010. Other hotel executives, such as Ralph Priesing of Sheraton Washington North Hotel in Beltsville, say the new rates could either hurt local hotels or bring in new business from closer to Washington, where some hotels may refuse to offer per diem rates. The Sheraton has 207 rooms. "It's a crapshoot right now," Priesing said. "Nobody's happy about the per diem rates going down." Drops also were seen in Howard County hotels, where rates are decreasing from $123 to $105; Baltimore city, where rates fell from $161 to $144 in some areas; and Annapolis, where the rates are falling from $120 to $100 or $114. "I've never seen rates this low," said Mary Jo McCulloch, CEO of the Maryland Hotel and Lodging Association in Annapolis. "It's putting a real chill on the recovery in this area to know the average daily rates are going to be lower than we expected." She said the changes are particularly bad timing because the industry still is reeling from rate cuts the industry adopted during the Great Recession. The association is asking Congress to intervene and cushion the blow. Mayers said he is unsure whether pressing Congress will help, saying the industry should instead examine the rates hotels are offering and establish reasonable price lines. "We've only been cutting each other off with rates during this time, so rates are dropping like crazy," he said. "We have to think more responsible than what the GSA is doing." Mayers stressed the need for hotels to be steadfast in their pricing, despite the dip in travel, arguing rooms cost the same to maintain no matter what a hotel charges for them. lrobbins@gazette.net This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php | |||
| Making Sense of Green Certifications in Lodging Facilities | By Eric B. Hansen, AIA, ISHC Posted: 08 Sep 2010 08:23 AM PDT |  8 September 2010 The number of green lodging certification programs in the hospitality industry has increased dramatically since the mid 1990s. The industry is populated with global programs, national programs, state programs, and yes, even some city and regional programs. These certification programs, while aimed at the same objective, good sustainability practice, are all vying for the same lodging facility's attention. There are a wide variety of choices when selecting a green certification program. In a recent article in Green Lodging News, publisher Glenn Hasek gave advice to yet another entrant into the green certification arena. His advice: "you better hurry up: [the competition is] really starting to pull away in the race to gain the attention of owners and operators here in the United States". Glenn's comments prompted two questions:
In today's green environment it is important to address the various types and purposes of the certification programs available, and assess key attributes about each program. WHAT ASPECTS OF MY FACILITY CAN BE GREEN CERTIFIED? The types of green certifications available are as varied as the types of lodging products available. Hotel & Leisure Advisors identifies four primary areas that are the focus of green certification programs. These broad categories consist of certifications for the overall building structure, the building fixtures themselves, building operations, and overall management practices.
TYPES OF GREEN CERTIFICATIONS In our studies for hotels, we recommend the development try to obtain and participate in a green lodging certification program. The evolution of sustainable property characteristics has taken root in the hospitality industry as the benefits are becoming more pronounced. We recommend developers analyze the appropriate certification program for their particular project, and weigh the benefits against the costs as a common sense approach. General benefits of participating in a green program include reduced energy consumption (equating to reduced operating costs) while providing positive eco-friendly publicity, as well as promoting good resource stewardship. While not an all-inclusive list, the more prominent green lodging certifications include:
The number of certification programs is continually growing, and the most successful programs will be the ones whose brand currency provides true value to the property through quantifiable results. Expedia has also entered the green certification arena. In addition, many states offer their own versions of green certifications, based upon the individual state's green policies. In 2006, there were a total of seven states that had some form of green certification. In 2010, this number has grown to 29 states, a four-fold increase in just four years. SUMMARY According to the USGBC® Green Venue Selection Guide, green buildings use 26% less energy, they emit 33% less carbon dioxide, they use 30% less indoor water, and they send 50% to 75% less solid waste to landfills and incinerators. While the results of going green vary dramatically with the level of chosen engagement in sustainability, the benefits of being green are quantifiable. Whatever certification program is chosen for a particular lodging facility, the fact is that participation in a program provides a positive impact for not only the property, but it reflects well on the hospitality industry as a whole. Author lodging products, construction developments, lodging news, mid 1990s, hospitality industry, interior environment, global programs, green environment, quality conservation, going green, regional programs, hasek, sustainable practices, strict guidelines, energy efficienc Eric B. Hansen, AIA, ISHC is the Director of Development Services for Hotel & Leisure Advisors, a national hospitality consulting firm. Mr. Hansen is active in performing appraisals, market feasibility studies, property condition assessments, and impact studies for hotels, resorts, waterparks, golf courses, conference centers, and other leisure properties. He was formally employed by Cole + Russell Architects, Inc. in Cincinnati. Mr. Hansen received his Bachelor of Architecture from the University of Cincinnati in 1989. He became a licensed architect in 1992 and was invited to membership in the International Society of Hospitality Consultants in 2002. He received a certification in Financial Management of Hotels from Cornell University School of Hotel Administration, Executive Education program, in 2007. Mr. Hansen offers over 16 years of experience in the hospitality industry and has been the responsible architect on over 65 hotels and conference centers of various brands, including full-service, extended-stay, select-service and economy chain scales. Mr. Hansen has worked with various major hotel company corporate offices and has extensive knowledge of brand criteria. As a hospitality consultant with a foundation in consulting, architecture, financial management, and appraisal theory, Mr. Hansen brings well rounded expertise to various H&LA assignments and assists H&LA clients with their pre-development, consulting, and valuation needs.  Hotel & Leisure Advisorswww.hladvisors.com 14805 Detroit Avenue | Suite 420 USA - Cleveland, OH 44107-3921 Phone: 216-228-7000 Fax: 216-228-7320 Email: dsangree@hladvisors.com | This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php | |
| THIS WINTER GUESTS WILL BASK IN OLYMPIC AFTERGLOW AT LODGING OVATIONS IN WHISTLER CREEKSIDE Posted: 08 Sep 2010 01:49 PM PDT 09.08.2010 – WHISTLER, BC – The afterglow of the 2010 Winter Olympic Games has settled, and skiers and riders looking to experience their own glory in the 2010.2011 winter season should do it while staying slopeside at one of Lodging Ovations' resort hotels in Whistler Creekside. With 20 per cent off all bookings made prior to November 15, 2010, First Tracks Lodge, Evolution and Legends are perfectly priced for an exciting winter experience at the heart of Whistler Creekside. "The Olympics focussed the world's eyes on Whistler Creekside and our lodges were at the base of all the Alpine action last February," says Jaime Dunn, Director of Sales and Marketing for Lodging Ovations. "This winter we can't wait to see our guests immerse themselves in the afterglow of the Olympics. They can make their own tracks down the Dave Murray Downhill and then ski right up to their slopeside home away from home at Lodging Ovations." All bookings at Lodging Ovations' trio of upscale resort hotels must be made before November 15, 2010 to receive 20 per cent off. Rates start at $159 per night before discount. Some restrictions may apply. Visit www.lodgingovations.com for more information. While each Lodging Ovations resort hotel has its own unique personality and attributes, the following amenities are available in all properties: complimentary wireless internet, high definition flat screen televisions (First Tracks Lodge and Evolution), fully outfitted kitchens, fireplace, private balconies. Large outdoor pools, hot tubs, sun decks and barbeque areas, as well as fitness facilities are also located onsite at each property. First Tracks Lodge Evolution Legends Lodging Ovations -30- Media Contact: Michelle Leroux, 604-902-1622 Follow Lodging Ovations on Twitter @LodgingOvations and join our Facebook Fan Page at: facebook.com/LodgingOvations This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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