Part of our services as a hotel asset manager requires us to consult different resources to effectively manage and oversee a client’s lodging property. We also like to share this information with investors and lenders, who are buying, selling or dealing with distressed hotel real estate, so they are better informed and make good decisions when enlisting our services. Two of these include the franchise fee guide and hotel transactions report produced by HVS. The third publication is written by our attorney friends at JMBM to help lenders with their distressed hotel loans. Here are summaries and links to obtain a copy: 1. 2010 U.S. Hotel Valuation Index (HVS) If you are planning to sell or buy a hotel, the take-away is that prices are expected to return to 2006 levels (Pre-Great Recession) in 2012. In that year, values peaked at approx. $100,000 per room. Added is that 2010 is now considered a recovery year since values plummeted to approx. $56,000 per room in 2009. 2. 2011 U.S. Hotel Franchise Fee Guide (HVS) On the brand side, Westin lead all franchisors in a #1 ranking of fees as a percentage of room revenues. This resource provides a good guide to what a particular flag costs, especially if you are a hotel asset manager negotiating on behalf of the owner. 3. The Lenders Handbook for Troubled Hotels (JMBM) Lenders, in particular during this downturn, have been ill-prepared and uninformed in how to deal effectively with their troubled hotel loans. This publication is a compilation of writings from the Hotel Law Blog on issues including hotel workouts, management, receiverships and more. There are also select books available from our bookstore that you may find helpful. Being in the business as a hotel asset manager, we are constantly on the lookout for informative tools to maximize investors and lenders hotel real estate values and returns. Please share yours with us.
