Hotel & Motel Management - January 19, 2009 - (Page 28)

H&MM January 19, 2009 | HotelMotel.com 28 On The Block LOOKING FORWARD 2009 “It’s not an opportune time to come to market unless you have to.” RICHARD CONTI, PRESIDENT, THE PLASENCIA GROUP BRIEFS Hunter Realty brokered three separate transactions. The 106-room Best Western, Atlanta was purchased by Kennesaw Hospitality LLC. The Comfort Inn & Suites in Birmingham, Ala., was purchased by DR & MV Hospitality LLC. Also, Hunter Capital Advisors advised Lodgian Hotel Acquisition LLC and Lodgian AMI in the sale of the 127-room Holiday Inn Glen Bernie, Baltimore, Md. The new ownership plans for a complete renovation. Hodges Ward Elliott’s Focused Service Division represented the seller, Studio Inn Ocean Springs, MS LLC, as exclusive adviser in the sale of the Studio Inn Extended Stay in Ocean Springs, Miss. The buyer, Motel 6 Operating LP of Delaware, will renovate the two-story, 124-room property and reposition it to the Studio 6 Extended Stay brand. PKF Capital brokered the sale of the 86-room Hotel Montgomery in downtown San Jose, Calif. After a targeted PKF Capital marketing process that produced multiple offers on the central business district property, Khanna Enterprises prevailed in the sale for an undisclosed amount. The seller was Gramercy Capital Corp. Snyder Nationwide Real Estate negotiated the sale of the leasehold interest of the Grove Isle Hotel & Spa, situated on a private island in Coconut Grove in Miami. Grove Isle Associates LP sold the property to Grove Hotel Partners LLC. The hotel offers 49 guestrooms, 8,000 square feet of meeting space, the full-service SpaTerre and a tennis center. Compiled by Emily Hanna, ehanna@questex.com 2009 to stay slow for most transactions bailout plan that allowed to understand there’s the government to going to be more purchase “troubled assets” downward pressure on from ﬁnancial institutions. price.” Richard Conti, president The need for both of The Plasencia Group, buyer and seller to said TARP could help compromise will lead bring lenders back into to longer negotiation the market, which he said Conti times, and falling is what is needed to kick- PLASENCIA GROUP operating results will start transactions. lead to an increase Smaller transactions in the presence were the saving grace of of renegotiations, 2008 because they used Mumford said. local and regional lenders For brokers, rather than national plans must change as players, Conti said, and well. Hotel Brokers until the national players International is ramping come back into the market, up its marketing efforts these deals likely are the Niehaus and its website, which HUFF, NIEHAUS & ASSOC. already has resulted in only ones to be done. “Lenders are not increased international yet lending to the level that we interest, Niehaus said. need them to be to get more of The Plasencia Group intends to the robust transaction market focus on advisory services in 2009, working. What’s going to turn especially to lenders who have been [the cycle] upward is going to be forced to take ownership of hotels the availability of debt,” he said. due to bad loans, Conti said. Until then, everyone involved Overall, brokers will be more in the transaction business must involved on all fronts in 2009, change his or her way of working. Mumford said. “You really have “On the buyer’s side, the buyer to manage [the process] much is going to have to be prepared to more closely and be much more come with more cash. They’ve actively involved in all the aspects been spoiled for the last 10 years of of due diligence, assisting in doing deals for 20 percent or less ﬁnancing and working in the down, and now it’s back to 20 years franchise transition,” he said. “It ago where cash is king and the just requires a much higher degree only lending getting done is with of care and much higher degree of those that have 40 or 50 percent participation for the brokerage side down,” Niehaus said. “Sellers are of things.” going to have to be more realistic ehanna@questex.com Transactions have slowed and will remain meager, but some are able to close, like the sale of the Hampton (Va.) Marina Hotel, brokered by Mumford. positive change. David Mumford, ASSOCIATE EDITOR principal of Mumford Co., said he s 2008 came to a close, news expects the ﬁrst half of 2009 will on the hotel transaction mirror the second half of 2008, front was as gloom and marked by slow transactions and doom as the rest of the evening the unavailability of debt, while news: There was little lending to the second half of ’09 could slowly be had, fewer buyers in the mar- pick up speed and will look more ket and fewer quality properties like the ﬁrst half of ’08. up for sale. Some brokers were “The second half of next lucky to ﬁnish the year at 40 per- year will start to show some cent less than 2007’s transaction improvement; confidence will rates, while others were down as slowly grow,” he said. “Now that much as 80 percent, acwe’ve got the election cording to H. Brandt behind us, you hear Niehaus, president of a bit less about how Huff, Niehaus & Assoeverything is terrible and ciates and the 2008 presthere’s more focus on ident of Hotel Brokers how to ﬁx things.” International. The path to a solution And for many brokers, may start soon with the the 2009 transaction Troubled Assets Relief market doesn’t hold Mumford Program, the part of the much hope for drastic MUMFORD CO. $700-billion government By Emily Hanna A MUMFORD CO. DEAL SPOTLIGHT Bristol, Va. Hunter Realty advised Linden Hotel Properties LLC in the sale of the Courtyard by Marriott, located in Bristol, Va. The property was acquired for $18.6 million and was purchased by afﬁliates of Apple REIT. Located among the Blue Ridge Mountains in western Virginia, the four-year-old, ﬁvestory hotel features 175 guestrooms, an indoor pool, ﬁtness center and 450 square feet of meeting space. The new ownership plans to retain the Courtyard franchise. HUNTER REALTY ONLINE EXTRA: To keep up to date on or notify people of your recent transactions, visit www.hotelworldnetwork.com/forums. http://www.HotelMotel.com http://www.hotelworldnetwork.com/forums

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - January 19, 2009

Hotel & Motel Management - January 19, 2009 Contents Select Inn First in Vista's Buying Plans Danzinger Chosen for Round 2 at Wyndham Perspective Energy Star Update Legally Speaking Consultant's Corner Sales Clinic Travel Trends Franchise Law Family Business Cornell Insights HotelWorld Update Transactions Careful Marketing is Key for Timeshare Debt Market Slow for Most Transactions Trends & Stats Proper Mix of Uses Leads to Profitable Partnerships Card Check, Employee Retention Big Issues for CEOs Locking Systems Televisions Fitness Centers/Spas Mattresses Ad/Editorial Index Marketplace Checking Out

Hotel & Motel Management - January 19, 2009

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