How a $2B Hospitality Company Collapsed Into Evictions and Bankruptcy | WSJ What Went Wrong
WSJ examines the financial missteps and strategic failures that led a major hospitality company from $2B valuation to bankruptcy and property evictions.
Explainer Articles
Market Penetration Index: Using MPI for hotel benchmarking
A busy hotelier has just wrapped up their best August ever - traditionally it has always been a strong month, but this year it’s been non-stop action. Multiple sell-outs, countless rooms turned, and after closing the books, the overworked team is ready for a much-deserved breather.
By Daniel Foreman, Commercial Strategist, Lighthouse
Foundation to Finishing: Construction Management's Vital Role in Hotel Development and Revitalization
It’s not surprising hotel construction is often a demanding and exciting process, as hotels need to have the comfort of a home and the durability for heavy usage of a restaurant on the scale of an office building. In the dynamic realm of hotel development, success hinges on a multitude of factors, with construction management emerging as a pivotal force shaping project outcomes. This article delves into the profound impact of construction management on hotel development, renovations, and Property Improvement Plans (PIPs), shedding light on its growing importance in an increasingly competitive market.
By Marc Fugnitto, Vice President of Project Management, Interior Image Group (IIG)
What is Crowdlending?
Any credit activity facilitated by an online electronic platform that matches loans with lender interest is variably called "crowdlending", “loan-based crowdfunding”, “P2P lending” or “marketplace lending”. The lenders that invest in loans via crowdlending platforms are the "crowdfunders", “loan-based crowdfunders”, “peer-to-peer lenders” ("P2P lenders"), or “marketplace lenders”, respectively. The term used generally depends on the jurisdiction where the platform is located.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What Are The CRE Debt Instruments?
Real estate bonds are fixed-income capital market instruments that are secured by income-producing property (IPP). They come in the form of a property or mortgage bond.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What are CRE credit and ESG risks?
The first-lien mortgage is the senior-most loan secured by real estate having priority claim against a property. It is first in the chronological order in which all mortgage loans are filed and recorded and payment upon the property's disposition. The senior mortgage has priority over all junior encumbrances and gives its holder priority to foreclosure proceeds in the event of borrower default.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What Is Commercial Real Estate Lending?
Commercial real estate lending is provided to finance income-producing property that is to be built, to refinance and restructure existing real estate financing, and to acquire distressed or non-performing loans (NPLs).
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What Are The Hotel Operating Arrangements?
Under a hotel lease agreement, the owner of a hotel property leases it to the tenant, who uses it to run its hotel business. The owner (landlord) has no control over the property's operation and bears no risk and liability for the hotel business.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What is Hotel Operator Selection?
The Operator Selection ProcessOperator selection is undertaken by developers and owners for the appointment of the hotel management operator. The process involves candidate identification, screening, and contract negotiations, generally together with the owner's legal counsel.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What Is Development Management?
Project Development Management (308)Development management is the strategic planning, administration and controlling of a project during its development life cycle, from project planning through to construction completion and project exit. It is performed to minimize project and financial risk while maximizing profit for the developer.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What Is Construction Project Delivery?
Architecture and DesignArchitecture is the skill and process of designing a structure, its exterior geometry and finishes, and defining the general interior layout of the building to enable its operational and logistical functions. When the architect is engaged in a development project generally depends on the project delivery method.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What Is Construction Project Management?
Construction project management is the coordination and supervision of a project's construction process, from early planning to erecting and finishing the product for project close-out. It is a function of overall development management.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
Why Is Feasibility Analysis Important?
Assessing Project Financial FeasibilityThe financial feasibility study (FFS) determines if or confirms that a project is potentially profitable, it including financial and scenario analysis and an investment appraisal. It should include a cost-benefit analysis of the project throughout the project's entire economic life, as most costs are incurred post construction from operation of the facilities.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What Is Hotel Feasibility Analysis?
Hotel Feasibility StudiesFeasibility studies are conducted by developers to analyze and confirm the optimal product to maximize market penetration, performance and the internal rate of return on investment (ROI) for the product's intended holding period. It is generally undertaken to provide objective and reliable information for the decision whether or not to pursue the project.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
Who Are Project Stakeholders?
A project stakeholder is any individual or group that can affect, be affected by or believe to be affected by a project during its life cycle and/or its output and can influence its success. A development project has multiple stakeholders with varied and often conflicting interests.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS
What is the Hotel Business Case?
The first step in the property development process is opportunity definition. This is when alternative projects are explored, identified and selected.
By Gregory Autin, Managing director of AUTIN&Co (AUTIN GmbH), SEEDIS