Being opportunistic without being a shark
Current demand to purchase assets may become the deal of the 21st Century
By Frances Kiradjian, Founder & Chair of BLLA
Today's climate may present a new opportunity for the hospitality industry for those sitting with cash, or some form of available cash.
And as it started growing globally, you would've had enough time to figure how to make your "cash" available at the ready-set-go. This would most certainly give you a leg up on being ready when those opportunities presented themselves, or when the private whisper network included you in those alerts.
But let's face it, Boardrooms in major corporations are making their lists now - and checking them twice. The Real Deal announced that the coronavirus is the deal of the century for many flush with money. "Hotels, retail properties and mortgage-backed securities in particular, present ripe targets for distressed-asset investors, the Wall Street Journal reported. As of December, private real-estate funds focusing on opportunistic and distressed-asset investments held $142 billion in dry powder, according to Preqin."
In the hospitality industry, Blackstone and Starwood Capital Group are sitting on a treasure trove of funds, what they call "dry powder." Besides the risk that might be involved, since no one really knows when travel will return, there is also the risk of looking like a shark in these infested waters - no pun intended. Conversations will need to be sensitive and heart-felt along with a little patience and understanding. All the human emotions will be involved in any negotiations.
On the positive side, a successful transaction under these circumstances could also be viewed as a gift from heaven. Being released from the enormous financial burden, even if at a price never imagined, could end up being a new opportunity, whether that's the freedom to start anew when the time comes or turn in a completely different direction. Sometimes we need to look the gift-horse in the eye and accept it, even if it's against the grain. Now is the time to get creative and carefully seize control of an opportunity, without being a shark.
About Boutique Money Group (BMG) - BMG provides services to hospitality and boutique industries. From consulting to advising all in a calm, stress free - no judgement way. Everyone wins. Sister organization to BLLA.
About the Boutique & Lifestyle Leaders Association (BLLA) - The official organization for the world's boutique lifestyle leaders promoting connection, education, and advocacy. As a pioneer in forecasting the boutique movement, the BLLA's network has grown beyond its hotel foundation to welcome more passionate entrepreneurs, businesses and purveyors that amplify the boutique lifestyle. BLLA is a catalyst for trends and the future of boutique. blla.org
About StayBoutique - StayBoutique discovers the best in boutique for the world to experience, be inspired by and share. As the BLLA's media platform, StayBoutique has been part of the boutique movement for the last 10 years. As boutique has grown from travel experiences into a thriving lifestyle, StayBoutique has extended beyond their hospitality origins to reach into consumers' lives. stay-boutique.com
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