Hotel & Motel Management - September 18, 2007 - (Page 78)

78 Special Report THE LODGING CONFERENCE H&MM September 18, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition Still a seller’s market in under-$10-million space By Marcia Layton Turner CONTRIBUTING EDITOR lthough there are differing opinions regarding when and why the current market peak might dip, participants in The Lodging Conference panel, “Hotel Deals Under $10 Million” concur that we’re A still in a seller’s market for now. This year’s conference will take place Sept. 25-28 at the Arizona Biltmore in Phoenix. “It has been a total seller’s market for the last three years,” said Anthony Falor, c.o.o., focused services division, Hodges Ward Elliott. While “$10 million buys you a lot less than it did four or ﬁve years ago, there are still a lot of select-service, midmarket properties available,” he said. “Ten million dollars will buy you a very nice hotel in this market—a midmarket, select-service, in a tertiary or secondary market,” said David Mumford, senior prin- cipal in The Mumford Company. “In fact, there are more buyers than sellers right now—the supply of hotel properties is low—but those who are selling are obtaining strong prices,” Mumford said. Another reason fewer deals are being done right now is that buyers’ and sellers’ ideas of value are so Panel: “Hotel Deals Under $10 Million” Date: Sept. 28 Time: 8:30 - 9:45 a.m. Moderator: Steven Belmonte, president and c.e.o., Lexington Hotels & Resorts and Hospitality Solutions LLC Panelists: Anthony Falor, c.o.o., focused services division, Hodges Ward Elliott; Adam Greene, senior v.p., hospitality ﬁnance, Textron Financial Resort Finance Division; John Howell, west region hospitality specialist, CIT Small Business Lending Corp.; David Mumford, senior principal, The Mumford Co. far apart, said John Howell, hospitality lending specialist, western region, with CIT Small Business Lending Corp. Sellers have seen competitors obtain top dollar for their properties and some are holding out for a better offer, while buyers are reluctant to overspend. While Howell sees deals up to $20 million, the most active range is $5 million to $10 million, he said. The key is land price, more Mumford THE MUMFORD CO. Howell CIT than anything, as buyers weigh whether to buy or build. “I’m seeing more new construction activity,” he said. “As capital prices have bottomed out, it’s cheaper to build something new than to buy … new construction is still going strong.” In new hotel construction, the land cost can run from 10 percent to 30 percent of a project’s total See Seller’s market | page 86 CIRCLE NO. 186 http://HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.loc-international.com http://www.jsh.co.il http://www.loc-international.com http://www.jsh.co.il

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - September 18, 2007

Hotel & Motel Management - September 18, 2007 Contents Vista Inns Redefines Business Model Conley Applies Satisfaction Theory to Boutique Hotels Questex Acquires Oxford Publishing Perspective At Your Risk Consultant’s Corner Sales Clinic Travel Trends On Finance Franchise Law Cornell Insights HotelWorld Update Training Trends Satisfaction Trends Management Trends Speakers Named, Registration Open for IH/M&RS Going Green Saves Green Trends & Stats Vacuums Go the Extra Mile Transactions Offsetting Emissions is Newest Sustainability Initiative Minibar Advancements Supplier News People on The Move ADA Compliance Can Be Easier With Programs Business Travelers Interested in Remote Check-In/Out Awards Markets Dictate Renovations vs. New Builds More Development Opportunities Available Top Hotel Companies Survey The Lodging Conference Previews Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - September 18, 2007

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