Hotel & Motel Management - May 5, 2008 - (Page Cover1)

3 PALMS A NEW UPSCALE BRAND ON THE MARKET Page 4 SURVEY WHO BROKERED THE MOST DEALS? Page 22 ON THE BLOCK THE TRANSACTION MARKET SHIFTS Page 28 www.HotelMotel.com News Analysis, Trends and People Since 1875 A HotelWorld Network Publication | Vol. 223, No. 8 | May 5, 2008 Cap rates creep upward Overall capitalization rates (percentage) Increases could signal trouble for industry By Emily Hanna ASSOCIATE EDITOR Hotel cap rates, on the rise since 2006, still are comparatively low. tality Research and PKF Consulting, reported that National Report–In the hotel cap rates, which past several months, the measure the ratio be2008 9.43 2003 11.24 credit crisis and economic tween the net income an recession have made headasset produces and its sell2007 9.13 2002 10.94 lines almost daily, and reing price, rose from 9.13 cent studies by HVS and percent in 2007 to 9.43 2006 8.89 2000 11.26 PKF Hospitality Research percent in 2008. Aeppel show that capitalization LOEWS HOTELS The lending environ2005 9.71 1998 10.87 rates are on the upswing, ment, namely the availwhich could signify troubling times ability and cost of capital and the 2004 10.69 1995 11.04 for the lodging industry. lack of liquidity in the market, The Hospitality Investment bears the brunt as the reason for inSource: PKF Hospitality Research Survey, published by PKF Hospi- creased cap rates. Other drivers include supply and demand for deals, according to Glyn Aeppel, executive v.p., acquisitions and development, Loews Hotels. U.S. misses out on global travel increase In previous years, cap rates were at an all-time low, with 2006 at 8.89 percent. “What that was, was basically really inexpensive debt, very readily available debt and very high-le- Dilipkumar “Danny” Patel, 2007 AAHOA chairman, discusses AAHOA membership growth in front of the association’s board of directors. AAHOA sends ‘harsh’ message to brands By Jason Q. Freed ASSOCIATE EDITOR INFO CONCIERGE San Antonio–Ten years after releasing a set of standards for franchisor-franchisee relationships it calls the “12 points of fair franchising,” the Asian American Hotel Owners Assn. released a “harsh” progress report detailing how ﬁve major hotel franchisors are complying with See AAHOA | page 40 See Cap rates | page 42 New Kimpton fund boosts growth By Stacey Mieyal Higgins Sources: U.S. Dept. of Commerce, Tourism Economics and Travel Industry Association SENIOR EDITOR San Francisco–Kimpton, already a major player in the boutique market, has made a strong move to help it pull away from the pack. Kimpton Group Holding LLC, parent company of Kimpton Hotels & Restaurants LLC, closed on its Depatie third institutional real-estate fund KIMPTON for $246 million in early April. The proprietary, discretionary fund will be used to acquire more than $800 million worth of hotels in the next three years. Mike Depatie, c.e.o., said the fund is a testament to Kimpton’s dominance in the boutique hotel market. “People see us in an exciting niche and a leading player in the business,” he said. While credit woes are inﬁltratLong ing all hotel investment conversaKIMPTON tions, Kimpton was able to close on its largest fund to date. See Kimpton | page 36 CHRIS SAVAS http://www.HotelMotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - May 5, 2008

Hotel & Motel Management - May 5, 2008 Contents Pipeline Favors Established Companies 3 Palms Debuts in Upscale Tier Guests Want Reward Options Perspective Legally Speaking Marketing Matters Consultant’s Corner On Finance What Women Want Maintenance Doctor Trends & Stats Special Report: Top Hotel Brokers Design: Tune Into Music Programs Hot Products: PTACs On the Block: Silver Lining in Bleak Hotel Sales Market Events Transactions Supplier News Consumer Insight: The Importance of Creature Comforts When Traveling Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - May 5, 2008

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