Hotel & Motel Management - November 17, 2008 - (Page 37) www.HotelMotel.com/digital_edition HotelMotel.com | H&MM November 17, 2008 News 37 Economy Continued from page 1 and operators, as well as valuation and research experts. They said the high cost of acquiring capital is slowing the transaction market. “Folks say there is no financing available. I don’t know if I agree with that,” said Daniel Lesser, senior managing director for CB Richard Ellis. “There is financing available at very low loan-to-values.” Lesser and others said purchases are requiring much more equity and lower loan-to-value ratios. A buzzword during the webinar was “recourse,” or the act of banks requiring borrowers to pledge collateral, typically real property, for which the borrower is personally liable if he or she is unable to continue making payments. “Everything said about re- Lesser course applies CBRE to us,” said John Hamilton, SVP of acquisitions and business development for Pyramid Hotel Group. “If you look at a calendar starting in January 2008, each month you go forward you add more recourse to the deals we’ve done. We went from zero percent in January to 25 percent now.” Davis said any economic stimulus plans, including the recent financial bailout plan, have hoteliers hoping the capital markets will open up in the beginning of 2009. But, he said, the effects remain to be seen. Lesser added a positive note, saying that because new plans call for lower interest rates, owners with a fair amount of capital can buy back their debt at lower costs. now booking with Westin business is going to be Hotels and Resorts or Shera month out and staff aton Hotels & Resorts. accordingly,” HamilSo how do operators ton said. survive the downturn? Owners and opera“What you did in the tors also can study their up market determines if property taxes. “This you survive in the down provides an opportumarket,” Davis said. nity to challenge asWoodworth Training and renovat- PKF HOSPITALITY sessments,” Lesser said. ing were things that should “Every dollar that gets have been done when the industry saved in a process like this goes to was peaking, Hamilton said, and the bottom line.” companies that reinvested would be in a better position to ride out Cause and effect Other travel industries affect the the downturn. “It’s war out there today,” said hotel industry’s climate. For example, airline capacity Mark Laport, president and CEO of Concord Hospitality Enterpris- cuts will directly correlate to oces. “We have spent tens of millions cupancy drops in certain markets, of dollars on our portfolio and Woodworth said. “There is a very clear relationour goal is to shift [market] share by having the ship between changes in airline best product. capacity from point A to point B You’ve got to and occupancy in hotels at point B,” he said. over-commu“If the announced cutbacks nicate to the staff that it’s hold true for 2009, that would repall about win- resent a one-point loss of demand ning. We talk for the industry as a whole.” Woodworth said the concern about it every Davis about the cost to fuel a jet has lessday.” HREC All panel- ened since September, but destinaists agreed reve- tions such as Hawaii, Phoenix and nue-management techniques have Las Vegas still will feel the effects drastically improved since the of increased airline costs. Drive-to most recent downturn, which will markets already are proving to be help prevent rate cutting and help more resilient, Davis said. Another interesting factor to keep control of the industry. “You have to know what your consider is perceived overspending and its effect on the resort market. Hamilton said his company is very concerned about decreasing big business travel, such as the $440,000 trip American International Group executives took after the insurance company was bailed out by the federal government. “We’re seeing attrition and cancellations in those areas,” he said. “We’re concerned with the resorts.” Laport said his company also is seeing attrition in travel from the financial sector. jfreed@questex.com CIRCLE NO. 121 We Were Green Before Green Was Cool n Nationally recognized for its environmentally friendly practices n On Site n No Downtime n Cost Efficient n Custom Granite Tops n Customizable n Clean & Fast n Warranted n Professional Finish Before Operation tactics Mark Woodworth, president of PKF Hospitality Research, said his company is predicting occupancy to drop 4 percent year-overyear by the end of 2008, and declines will be “even more severe” in 2009. And those who continue to travel, he said, are trading down segments. Hamilton used Pyramid’s wide-ranging portfolio to provide examples, saying a typical Ritz-Carlton Hotel Co. guest is After Savings of up to 80% vs. buying new furniture Greenbuild Booth #2354 1.800.523.9448 www.therefinishingtouch.com CIRCLE NO. 127 CIRCLE NO. 124 http://www.HotelMotel.com/digital_edition http://www.HotelMotel.com http://www.sterifab.com http://www.therefinishingtouch.com http://www.universal-textile.net
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - November 17, 2008 Hotel & Motel Management - November 17, 2008 Contents Muted Mood at First HHOA Conference Concord Steps Up Management Plans, Goals DePaul Launches Hospitality School Perspective Legal FAQ Consultant’s Corner Maintenance Doctor Family Business Management Trends What Women Want Training Trends Marketing Matters HotelWorld Update Trends and Stats Top Design Firms Property-management Systems Transportation Services Laundry Equipment Marketplace Ad/Editorial Index Classifieds Checking Out Hotel & Motel Management - November 17, 2008 Hotel & Motel Management - November 17, 2008 - Hotel & Motel Management - November 17, 2008 (Page 1) Hotel & Motel Management - November 17, 2008 - Hotel & Motel Management - November 17, 2008 (Page 2) Hotel & Motel Management - November 17, 2008 - Contents (Page 3) Hotel & Motel Management - November 17, 2008 - DePaul Launches Hospitality School (Page 4) Hotel & Motel Management - November 17, 2008 - DePaul Launches Hospitality School (Page 5) Hotel & Motel Management - November 17, 2008 - Perspective (Page 6) Hotel & Motel Management - November 17, 2008 - Perspective (Page 7) Hotel & Motel Management - November 17, 2008 - Consultant’s Corner (Page 8) Hotel & Motel Management - November 17, 2008 - Consultant’s Corner (Page 9) Hotel & Motel Management - November 17, 2008 - Maintenance Doctor (Page 10) Hotel & Motel Management - November 17, 2008 - Maintenance Doctor (Page 11) Hotel & Motel Management - November 17, 2008 - Family Business (Page 12) Hotel & Motel Management - November 17, 2008 - Family Business (Page 13) Hotel & Motel Management - November 17, 2008 - Management Trends (Page 14) Hotel & Motel Management - November 17, 2008 - Management Trends (Page 15) Hotel & Motel Management - November 17, 2008 - What Women Want (Page 16) Hotel & Motel Management - November 17, 2008 - What Women Want (Page 17) Hotel & Motel Management - November 17, 2008 - Training Trends (Page 18) Hotel & Motel Management - November 17, 2008 - Training Trends (Page 19) Hotel & Motel Management - November 17, 2008 - Marketing Matters (Page 20) Hotel & Motel Management - November 17, 2008 - HotelWorld Update (Page 21) Hotel & Motel Management - November 17, 2008 - Trends and Stats (Page 22) Hotel & Motel Management - November 17, 2008 - Trends and Stats (Page 23) Hotel & Motel Management - November 17, 2008 - Top Design Firms (Page 24) Hotel & Motel Management - November 17, 2008 - Top Design Firms (Page 25) Hotel & Motel Management - November 17, 2008 - Top Design Firms (Page 26) Hotel & Motel Management - November 17, 2008 - Top Design Firms (Page 27) Hotel & Motel Management - November 17, 2008 - Top Design Firms (Page 28) Hotel & Motel Management - November 17, 2008 - Top Design Firms (Page 29) Hotel & Motel Management - November 17, 2008 - Property-management Systems (Page 30) Hotel & Motel Management - November 17, 2008 - Property-management Systems (Page 31) Hotel & Motel Management - November 17, 2008 - Property-management Systems (Page 32) Hotel & Motel Management - November 17, 2008 - Transportation Services (Page 33) Hotel & Motel Management - November 17, 2008 - Transportation Services (Page 34) Hotel & Motel Management - November 17, 2008 - Transportation Services (Page 35) Hotel & Motel Management - November 17, 2008 - Transportation Services (Page 36) Hotel & Motel Management - November 17, 2008 - Transportation Services (Page 37) Hotel & Motel Management - November 17, 2008 - Laundry Equipment (Page 38) Hotel & Motel Management - November 17, 2008 - Marketplace (Page 39) Hotel & Motel Management - November 17, 2008 - Ad/Editorial Index (Page 40) Hotel & Motel Management - November 17, 2008 - Classifieds (Page 41) Hotel & Motel Management - November 17, 2008 - Classifieds (Page 42) Hotel & Motel Management - November 17, 2008 - Classifieds (Page 43) Hotel & Motel Management - November 17, 2008 - Classifieds (Page 44) Hotel & Motel Management - November 17, 2008 - Classifieds (Page 45) Hotel & Motel Management - November 17, 2008 - Checking Out (Page 46) Hotel & Motel Management - November 17, 2008 - Checking Out (Page 47) Hotel & Motel Management - November 17, 2008 - Checking Out (Page 48)
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