Hotel & Motel Management - December 29, 2008 - (Page 34)

» BY HE AT HER GUN T ER, ASSOCI AT E EDI TOR Lenders tighten standards in uncertain market E conomic uncertainty and weaker ed money before the end of this year creasingly need mezzanine ﬁnanclodging fundamentals will cause will have new allocations available ing or additional equity to pay off lenders to be more cautious in 2009, for next year.” their existing debt,” said Deric Eubut there’s still hope for good transactions. Robert Koger, president of Mobanks, VP of investments for AshLack of available capital will character- linaro Koger, was more optimistic. ford Hospitality Trust. ize 2009, said James T. Merkel, president of The lending market in 2009 will Eubanks said 2009 will difRockBridge Capital. “The outlook will be mirror 2008 in the beginning of the fer from 2008 because revenue worse than in 2008, and fear will cause lend- year, but improve signiﬁcantly in per available room and net operaters to bunker down,” Merkel said. the latter part of 2009, he said. ing income have started to decline. Koger Lenders will get paralysis, but 2009 will be different MOLINARO KOGER “Lenders will be increasingly cauthe election of President-elect in that lenders will begin tious in their underwriting during Barack Obama will create cautious to underwrite improvement in the a period of declining RevPAR and NOI.” optimism, said Joe Epstein, presmarket instead of declining perforIn-place cash ﬂow and sponsorship will ident and founder of First Amerimance, Koger said. “This will allow typify the market in 2009, said Gavin Davis, can Realty Associates. lenders to be more aggressive and SVP of CBRE Hotels–Finance. 2009 also “There’s going to be a hope that provide better lending terms.” will see “lower inﬂation and more conservathe closed capital markets begin to “[Loan-to-value ratios] are com- tive risk taking by buyers and lenders alike,” open,” Epstein said. “Hotel lending down, so borrowers that are re- Davis said. “This should coincide with highers that ﬁlled the conduit void ear- Epstein ﬁnancing high leverage debt put in er [capitalization] rates and more opportunily in the year and ran out of allocat- FIRST AMERICAN place over the past few years will in- ties relative to 2008.” » H & M M 2008 LENDING SURV E Y Broker—% of total Varies 5% 10% 20% 100% 50%75% 100% Equity—% of total 10% 15% 35%45% 10% 20% 20%50% 50% Company Deals under $10M Deals over $100M Deals $50-$100M Mezzanine—% of total 10% 75% 10%20% Debt—% of total 80% 10% 100% 55%-65% 70% 50%-80% 50% Deals $10-$50M x Contact E-mail Website Robert Faust Mortgage Co. 6060 North Central Expressway, 620 Dallas, TX 75206 RockBridge Capital 4100 Regent St., Suite G Columbus, OH 43219 Specialty Finance Group 3284 Northside Parkway Atlanta, GA 30327 Thayer Lodging Group 1997 Annapolis Exchange Annapolis, MD 21401 The Ackman-Ziff Real Estate Group LLC 110 E. 42nd St. New York, NY 10017 The Chartres Lodging Group LLC 50 California St., Suite 3300 San Francisco, CA 94111 The Hotel Group 110 James St., Suite 102 Edmonds, WA 98020 Robert L. Faust robert.l.faust@gte.net Gavin Freytag gkfreytag@rockbridgecapital.com www.rockbridgecapital.com Greg Friedman gfriedman@silvertonbank.com www.specialtyﬁnancegroup.com Bruce G. Wiles bwiles@thayerlodging.com www.thayerlodging.com Mark K. Owens mowens@ackmanziff.com www.ackmanziff.com Rob Kline rob.kline@chartreslodging.com www.chartreslodging.com Douglas Dreher ddreher@thehotelgroup.com www.thehotelgroup.com x x x x x x x x x x x x x * Information was gathered from the 2007 Advisor lending listing. NA is not answered. 34 HOTEL & MOTEL MANAGEMENT | THE ADVISOR DECEMBER 2008 www.HotelMotel.com http://www.rockbridgecapital.com http://www.specialtyfinancegroup.com http://www.thayerlodging.com http://www.ackmanziff.com http://www.chartreslodging.com http://www.thehotelgroup.com http://www.HotelMotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - December 29, 2008

Hotel & Management - December 29, 2008 Contents Viewpoint Outlook Purchasing Companies See Green and Save Purchasing Chart Designers Target Lifestyle, Lobbies and LEED Design Chart Construction Chart Construction Outlook Bleak Lending Chart Lenders Tighten Standards in Uncertain Market 2009 Requires Changes Across the Board Brokers Chart Brands Chart Building, Developing a Brand Tight Management Will Be Key in Downturn Management Chart Year of the Turtle: Slow, Steady Will Win Race Owners Chart Consumer Trends

Hotel & Motel Management - December 29, 2008

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