The Hotel Times - June 2008 - (Page 24) BROKERS UPDATE Jones Lang LaSalle Hotels brokered the sale of the Laguna Cliffs Marriott Resort & Spa to an institutional client of Cornerstone Real Estate Advisers. Continued from page 22 Globalization and heightened sophistication of the hotel industry have meant a significant shift in the way hotel brokers approach their jobs. Today brokers are focused on developing relationships with sellers, specializing in particular products and markets, and keeping up with that increasingly challenging ª minefield.º Specialist in the house? While the macro picture may focus on globalization, the micro-picture highlights specializationÐ whether that is category of hotel, geographic region, even brand. Teague Hunter, executive v.p. of Hunter Realty Associates, said, ª I am a big believer in specialists. You wouldn' t want an electrician to fix a leaky pipe. If you are considering selling your hotel, hire a specialist.º When looking for a broker, ª Make sure they specialize in selling hotels, not office or retail,º he said. ª Second, find someone who specializes in your product segment. If you are selling a Hampton Inn, find someone who specializes in selling Hampton InnsÐ same with Ritz-Carlton or Motel 6. ONLINE EXTRA! Keep tabs on the international hotel market by visiting www.TheHotelTimes.com. They are different market segments with different buyers.º ª Don' t go out for the biggest name or the person who' s done the most transactions,º Mallory advised. ª You have to match the broker' s experience with the particulars.º Eric Kudlak, managing director, Europe, for Molinaro Koger, said, ª If you are a private equity firm considering disposition of a four-star resort property in Orlando, you will want to know if your prospective brokers have handled properties of that caliber, in that area or at least in Florida, and have conducted work successfully for clients similar to you. Your proposal from them will probably cover this via a partial client list, scenarios of successful similar asset transactions and an initial market assessment including an estimate resulting disposition.º ª In the 15 years that I have been doing this, this business has gotten so much more specializedÐ like medicine,º James said. ª You need to match the product you have with the broker that specializes in it. All variables should be considered when selecting a broker, including location, size of property, sales price and level of services offered.º Relationships ª Some people try to do it all, but we' re still a street corner business,º Hunter said. ª It' s all about knowing the players in the market. Which buyer really wants to be in Washington? Who really wants to own a Courtyard? And more important: Who can do it? You simply have to be connected. ª The most important thing is to find someone you like, who you can trust and who you can communicate well with,º he said. ª Selling your hotel is a process and you will get very close to your broker over the months that it takes. My father always told me, ` People do business with people they like and trust.' º Even when you find a good match as far as a specialist, James said, ª you still will come up with multiple choices. At that point, the personal connection is crucial. In the time it takes to bring a deal from contract to closing it all gets very personal.º ª Broker relationships are pretty much the same as always,º said Rick Swig of RSBA Associates. ª But in this environment there has been increasing diversification into loan brokerage as well as transfer or transaction brokerage because the current real-estate transaction market is so challenged right now and potential sellers are not being satisfied with the prospect of a sale and are looking for alternative methods of monetizing value from their investments.º Adler said the broker should have a Continued on page 28 24 The Hotel Times June 2008 www.TheHotelTimes.com JONES LANG LASALLE http://www.TheHotelTimes.com http://www.TheHotelTimes.com
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