Hotel & Motel Management - September 15, 2008 - (Page 59)

www.HotelMotel.com/digital_edition HotelMotel.com | H&MM September 15, 2008 Special Report THE LODGING CONFERENCE 59 Panelists to discuss mixed-use beneﬁts, strategies By Chris Crowell ASSOCIATE EDITOR mid economic uncertainty and talk of downturns, hotel mixed-use projects offer an opportunity for success—if done correctly. Panelists for The Lodging Conference’s session on lucrative mixed-use projects emphasize the beneﬁts this type of project has for a hotel, as long as all parties involved cooperate and do their homework. This year’s conference will take place Sept. 23-26 at the Arizona Biltmore Resort and Spa in Phoenix. The panel’s moderator, Mitch Miller, managing partner of the Miller Law Group, said he will discuss synergies Miller of a mixed-use MILLER LAW GROUP project—looking at mixeduse partnerships from a business and legal perspective and figuring out how the different pieces ﬁt. “One Butler needs to conJMBM sider whether separate parcels in a mixeduse project make sense. What are the economic beneﬁts one can derive?” Miller said. “We know different categories trade at different cap rates, so in terms of positioning down the road … it may make sense to separate out those parcels.” Miller stressed that each development is different and hoteliers must recognize the differences. “For example, in a business hotel, maybe UPS or FedEx might be a great tenant. It might save you space from having a business center. I can’t tell you how many times having a FedEx or a Kinkos downstairs has been a godsend for me,” Miller said. “Conversely, if I’m in a resort, what the hell good is it? That may be a gross example to make the point, but that’s the idea of positioning.” Panelist Jim Butler, chairman of the global hospitality group at Jeffer Mangels Butler & Marmaro, used two terms to sum up what’s important for a successful mixed-use development: densiﬁcation and integration. Butler explained that you must bring each element in tightly, while also building the elements to function together. “It goes to ﬁnding the right blend of not just uses … but what’s the right brand, ﬂavor and accent [for the project] … how do you make it complementary to other very speciﬁc uses?” Butler said. But, of course, even with the right mix of tenants, there still are other delicate issues. “A successful mixed-use proj- ect is very complex legally,” Butler said. “You’re sharing a lot of facilities and some of the economics and beneﬁts come from shared use of parking, common spaces, walkways and parks. Who pays for them? Who uses them? All of these things get reﬂected in legal documents. … It’s not just plopping a store next to a hotel.” Butler compared the creation of a mixed-use project to an orchestra. “When it sounds good, that’s how it is supposed to be. But when it’s bad, it’s a cacophony.” Greg Shields, national chairman for ChainLinks Retail Advisors, said he sees this panel as an opportunity to build the lines of communication and help hoteliers through the process. RED MOUNTAIN RETAIL GROUP AND CHAINLINKS HOSPITALITY COUNCIL A The Sugarhouse mixed-use project in Salt Lake City combines hotel, retail, ofﬁce space, apartments and condominiums all under one roof. “My goal would be to assist the hoteliers in understanding the pieces on this chess board and how they move the pieces to get these deals,” Shields said. “A lot of them want to do it but have never done it before because it’s a different animal. The deals are more complicated, but the properties are killer if you get them.” On the other hand, it’s also important that the other sectors of a mixed-use development understand the utility of a hotel. “If you’ve got a [hotel], you can go vertical, put retail on the ﬁrst ﬂoor and sell the land twice,” Shields said. “You’ve got a guy who doesn’t have to be front and center, who can get visibility by height. There’s just a lot of attractiveness there.” Some common questions the panel also plans to cover include: How do you deal with land cost numbers that don’t make sense? How do you deal with brand concerns on the part of mixed-use master developers? How do you ﬁnd out about mixed-use projects as early as possible? What are today’s consumers looking for? Will the prevailing credit markets impact the underwriting of mixed-use projects? Will the current global economy impact the size and complexion of mixed-use developments? How do spas ﬁt into lucrative mixed-use projects? ccrowell@questex.com Name of panel: “Lucrative Mixed-use Projects” Time of panel: 2-3:30 p.m. Thurs., Sept. 25 Moderator: Mitch Miller, managing partner, Miller Law Group Panelists: Peter Anderson, principal at Anderson and Associates; Jorge Boone, SVP for North American business development at Group RCI; Jim Butler, chairman of the global hospitality group at Jeffer, Mangels, Butler & Marmaro LLP; Jeremy Cohen, director of U.S. development at S.D. Malkin Properties; and Greg Shields, national chairman of ChainLinks Retail Advisors. FITNESS PROTOTYPE DESIGN POOL SPA Facility Design & Planning Nationwide Sales & Service www.HotelFitnessClub.com THE WORLD’S LEADER IN HOTEL & RESORT FITNESS® Call For Brochure 800.291.0403 phone e-mail: sales@HotelFitness.com CIRCLE NO. 167 http://HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.HotelFitnessClub.com http://www.HotelFitnessClub.com

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Hotel & Motel Management - September 15, 2008 Contents Microtel, Hawthorn Settle in at Wyndham Is it Black or Red for Green Hotels? New City on the Strip When in Doubt, Purchase some Seashells Legal FAQ Consultant's Corner Sales Clinic On Finance Travel Trends Franchise Law Guest Column Events Cornell Insights HotelWorld Update Trends & Stats Top Hotel Companies Survey Awards Lending Requires Knowledge, Preparation Casegoods Minibars Historian to Keynote Leadership Forum at IH/M&RS Fitness Equipment The Lodging Conference Preview Accent Lighting Awards Vacuums Supplier News Transactions People Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - September 15, 2008

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