Hotel Business Journal Mar/Apr 2009 : Page 1

Supplement to Hotel Business® MARCH/APRIL 2009 TM ICD Publications innsights • Gehr Development has acquired New York’s first Fairfield Inn by Mar- riott for nearly $100 million, accord- ing to The New York Observer. The newly built 228-room hotel had been owned and developed by the Lam Group. Marshall Hotels & Re- sorts has been named as the man- ager of the property. For Los Angeles-based Gehr Devel- opment, the acquisition marks its entry into the lodging business. • Citing the crippled economy, Gatehouse Capital has withdrawn plans for a mixed-use development in Milwaukee that was supposed to feature a 175-room Hotel Palomar. oneonone with Mark Gordon, executive vp, principal & head of Cushman & Wakefield Sonnenblick Goldman’s U.S. hotel group Q: Cushman & Wakefield Sonnenblick Gold- man has somehow been active in brokering several hotel real estate transactions during this time when no deals are seemingly getting done. How is the firm accomplishing this feat? by the numbers U.S. and Caribbean hotel markets will continue their descent off the RevPAR cliff this year, according to Jones Lang LaSalle Hotels, with specifically the Caribbean followed by Hawaii, Miami and New York leading the way down. Where the bottom is, however, few seem to know. What is known is that non-U.S. markets across the Americas are just nearing their RevPAR peak and set for their long-awaited descents down. Brazil and Argentina markets remain the furthest away from the RevPAR fall, as they lag the U.S. markets. SOURCE: Jones Lang LaSalle Hotels Acquired WV hotel set for life of luxury Supplemen Supplemen Supplemen Supplemen Supplemen Supplemen Supplemen Supplemen Supplemen Supplemen lement to Hotel Business® MARCH/APRIL 2009 TM ICD Publications innsig t to Hotel Business® MARCH/APRIL 2009 TM ICD Publications innsights • Gehr Development has acquired New York’s first Fairfield Inn by Mar- riott for nearly $100 million, accord- ing to The New York Observer. The newly built 228-room hotel had been owned and developed by the Lam Group. Marshall Hotels & Re- sorts has been named as the man- ager of the property. For Los Angeles-based Gehr Devel- opment, the acquisition marks its entry into the lodging business. • Citing the crippled economy, Gatehouse Capital has withdrawn plans for a mixed-use development in Milwaukee that was supposed to feature a 175-room Hotel Palomar. oneonone with Mark Gordon, executive vp, principal & head of Cushman & Wakefield Sonnenblick Goldman’s U.S. hotel group Q: Cushman & Wakefield Sonnenblick Gold- man has somehow been active in brokering several hotel real estate transactions during this time when no deals are seemingly getting done. How is the firm accomplishing this feat? by the numbers U.S. and Caribbean hotel markets will continue their descent off the RevPAR cliff this year, according to Jones Lang LaSalle Hotels, with specifically the Caribbean followed by Hawaii, Miami and New York leading the way down. Where the bottom is, however, few seem to know. What is known is that non-U.S. markets across the Americas are just nearing their RevPAR peak and set for their long-awaited descents down. Brazil and Argentina markets remain the furthest away from the RevPAR fall, as they lag the U.S. markets. SOURCE: Jones Lang LaSalle Hotels Acquired WV hotel set for life of luxury continued continued on back cover The Hilltop House Hotel in Harpers Ferry, WV. Most people are walking around like nothing is happening, but we’re taking the approach of rather than complain- ing we’re rolling up our sleeves and trying to get deals done and we’ve been successful. There are ways to get deals done. Everyone gets caught up in the negative news, but coming off a few spectacular years some investors are now ready to readjust their expectations. We’ve completed three deals in the past two-and-a-half months. We recently closed on the refinancing of the Fairmont in Washington, DC, for example, as well as a construction loan in New York. We also closed on the equity recapitalization of a New York hotel. A: Q: A: Excluding the opportunistic hotel in- vestors that are out there, why is every- one content to remain on the sidelines? There are two forces at work here. The economic conditions are as challenging as any time certainly in my 20-year ca- reer. On top of that we are coming off a better time than any seen in my 20-year career. So investors are really in a state of shock, and those who are able to readjust to the new market conditions will be the most successful. We’ve seen a marked improvement in lender interest. A number of lenders have re-en- gaged in active hotel dialogue. Chartres sells off Adam’s Mark Buffalo BUFFALO, NY—One year after Chartres Lodging Group acquired what were at the time the last five remaining Adam’s Mark hotels, it has turned around and sold one of them, the 486-room Adam’s Mark Hotel here. The property was sold to Visions Hotels. CBRE Hotels arranged the deal—at a price of $7.5 million—on the behalf of Chartres. One year ago, Chartres paid $18.6 million for the Buffalo asset. It paid about $238 million for all five Adam’s Mark properties, three of which have since been converted to other brands by Chartres. The Indianapolis Adam’s Mark remains in Chartres’ portfolio. Chartres also acquired the rights to the Adam’s Mark brand in that portfolio deal with HBE Corp. one year ago.

Acquired WV hotel set for life of luxury

Bruce Serlen

Chartres sells off Adam’s Mark Buffalo

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