Development USA & Canada Opinion Articles

August 12, 2022

Waterpark Resort Development: Successes and Pitfalls

The waterpark industry continues to flourish in the United States and Canada. While the pandemic slowed demand and growth in 2020 and 2021, 2022 has largely been a return to normal for operators but also for developers and investors looking for new opportunities to leverage the growing popularity of waterpark resorts along with increasing consumer demand for fun, family-oriented vacation options.

By David Sangree, MAI, CPA, ISHC, is President of Hotel & Leisure Advisors, Hotel & Leisure Advisors (H&LA)

United States

Opinion Article

July 27, 2022

The Major US Hotel Sales for Q2

With the first half of the year now in the books, 2022 has thus far provided an unexpected and tumultuous ride. It was only six months ago when the S&P 500 reached all-time highs in a world where lingering supply chain pressures and potential COVID outbreaks seemed to be the two most pressing risks to economies across the globe. While those two dangers are abating, a refreshed slate of macro-overhangs may be more daunting than ever. Included are the ongoing war in Ukraine, rising interest rates and soaring levels of inflation.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

June 22, 2022

Highlights From NYU Investment Conference

David Sangree, MAI, CPA, ISHC had the opportunity to attend the NYU International Hospitality Industry Investment Conference on June 6-7 at the New York Marriott Marquis. The following are some key highlights from the conference.

By David Sangree, MAI, CPA, ISHC, is President of Hotel & Leisure Advisors, Hotel & Leisure Advisors (H&LA)

New York, United States

Opinion Article

April 26, 2022

What the 2022 Revitalization of EB-5 Financing Means Today: Part 2

Experts expect to see a flood of interest in the EB-5 program, both from foreign investors anxious to immigrate to the US, and from real estate developers with shovel-ready projects seeking capital.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

United States

Opinion Article

April 21, 2022

A Breakdown of the Major US Hotel Sales for Q1

As the world was emerging from a once in century pandemic, global and national events during the first three months of 2022 have resulted in a transformative quarter unlike any for nearly 80 years. During the nuclear superpower age, the notion of an unprovoked brutal attack and invasion of a sovereign state was the stuff of fiction. “Never again” is a phrase associated with the Holocaust, the genocide of European Jews during World War II. Unfortunately, the phrase is merely two words as history is currently repeating itself in Eastern Europe.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

April 19, 2022

What the 2022 Revitalization of EB-5 Financing Means for Real Estate Developers and Other Entrepreneurs: Part 1

Since the renewal of the EB-5 program this year, there has been a lot of talk about what this means for developers interested in taking on new projects. Our recent article in Westlaw Today sums up the latest information about the program. Part one is below; part two will be published next week.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

United States

Opinion Article

April 4, 2022

2022 Update: EB-5 is back! What every real estate and hotel developer needs to know about the program’s renewal

The hotel development and financing world is buzzing with the news that the EB-5 program has been renewed, creating new opportunities for upcoming projects. My partner David Sudeck and I have written the short update below to help get you up to speed.

By David Sudeck and Jim Butler

United States

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The next-gen metrics that move hotel P&L

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Mews

Opinion Article

March 29, 2022

2022 Hunter Conference Takeaways

As we get ready to close out the first quarter, the Hunter Conference offered the industry’s latest perspectives on where we find ourselves today and predictions about how the rest of 2022 may play out. Highlights of what we heard at the event are captured here.

By Rodney Clough, President - HVS Americas, Denver, HVS

United States

Opinion Article

March 1, 2022

Are Hotels a Hedge Against Inflation in the Modern Era?

In December 2021, the U.S. Consumer Price Index (CPI) exceeded its 2020 level by more than 7%, the highest rate since the 1980s, according to the St. Louis Federal Reserve. This dramatic upswing has rekindled debates over the effects of high inflation.

By Bram Gallagher, Economist, CBRE Hotels

United States

Opinion Article

February 23, 2022

COVID-19’s Impact on the Silicon Valley Lodging Market

One of the main economic engines of the San Francisco Bay Area, Silicon Valley experienced tremendous growth during the last business cycle. Major companies such as Google, Apple, and Meta (formerly Facebook) have expanded their presence in recent years, which has historically translated to strong lodging performance. However, with the onset of the pandemic and a market-wide shift in policy toward remote working in 2020, hotels have been severely affected, particularly in terms of average rate. Moreover, the influx of new supply over the last several years has been significant, which has substantially heightened competition within most Silicon Valley submarkets.

By Noella Moon and John Berean

California, United States

Opinion Article

January 31, 2022

Economic Recovery Creating Attractive Environment For Mergers & Acquisitions?

As the economic recovery continues following the depths of the COVID-19 pandemic, the current market is making mergers and acquisitions (M&As) more and more attractive to hotel industry players. While a concentrated movement of merger and acquisition activity has been lacking thus far in the cycle, the large availability of private equity, low interest rates, the return of CMBS, and favorable liquidity in the debt market are enticing. However, compared to past “headlines” and brand-related M&A activity, such as the Marriott and Starwood Hotels & Resorts $13-billion deal in 2016, it appears that the effects of the pandemic have spurred more interest from hotel management and ownership-related companies.

By Chelsey Leffet, Managing Director, Northeast Leader, HVS

United States

Opinion Article

January 31, 2022

ALIS 2022 Takeaways – Our Industry Braces for a Big Year Ahead

ALIS kicked off the 2022 hospitality industry convention season this week with heightened optimism for the sector. Several factors are converging this year that are setting the stage for what may be a year of record-breaking transaction activity.

By Rodney Clough, President - HVS Americas, Denver, HVS

United States

Opinion Article

January 19, 2022

Q4 2021 Major U.S. Hotel Sales Survey

During 2021, vaccines and booster shots paved the way for a brief return to some semblance of normalcy, however as we enter 2022 the nearly two-year global health crisis is not over. Since the end of November, the Omicron variant of COVID-19 has surged, bringing record high daily counts of infection resulting in many companies further delaying their longawaited return-to-office. Staffing shortages and the global supply chain challenges continue to wreak havoc on businesses and Omicron has the potential to further disrupt travel including the airline, hotel, and group meeting and convention industries.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

November 2, 2021

A Year in Review: Opening a Hotel During a Pandemic

The Covid pandemic has impacted the world in every conceivable way and when things return to “normal” one day, cultural behaviors and norms may never be quite what they were. One of the most significant changes has been the shift to an increasingly remote and tech-driven lifestyle with limited human interaction. No industry felt this more deeply than the hospitality industry whose benchmark for quality service is often directly tied to human connection. Hotels were forced to adjust to meet guests' comfort levels - from cleaning protocols to digital check-ins, shutting F&B venues and more.

By Victor Caguindagan, General Manager of LOTTE HOTEL SEATTLE, LOTTE Hotels & Resorts

Seattle, Washington, United States

Ad Guide

The next-gen metrics that move hotel P&L

Hotel tech has changed what's possible – and measurable. RevPAR and ADR aren't enough; discover the metrics that really matter.

Mews

Opinion Article

October 15, 2021

Major Hotel Sales Transactions in the Third Quarter

The U.S. economy is expected to grow roughly six percent for the year, however with one quarter to go in 2021, this year has done its best to be as tumultuous and volatile as the last. It feels like we’ve been on this road for a while, with the same kinds of bumps to navigate including COVID, deepening supply chain issues, higher energy prices, a recent cutback in consumer spending, and the scarcity of materials. What everyone had hoped would be a more normalized environment has turned out to be anything but that.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

September 13, 2021

The Herald of a Las Vegas Renaissance with Resorts World

There are big hotel projects and then there are even bigger projects. Resorts World Las Vegas tops even that threshold. Just imagine a project covering 88 acres, over 3,000 guestrooms, three separate hotel marques (Hilton, Conrad and Crockfords), five pool experiences, a massive spa, 40 restaurants and bars and gaming, with a total investment of over $4.3 billion. And, for good measure, add in constructing this through the COVID pandemic!

By Adam Mogelonsky and Larry Mogelonsky

United States

Opinion Article

July 14, 2021

Q2 2021 Major U.S. Hotel Sales Survey

The U.S. Lodging Industry has shifted dramatically over the past twelve months. Looking back to this time last year, the world was fiercely battling the Coronavirus pandemic, virtually weaponless without anything other than masks and social distancing measures. We are now roughly six months into the global vaccination campaign, with cases and death rates much lower in most parts of the world.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

June 25, 2021

Impact Of Gallagher Amendment Repeal On Property Taxes For Colorado Hotels/Motels

Local government authorities use property tax revenues to fund services including police and fire protection, hospitals, transportation, and schools for municipalities. For tax purposes, property is considered residential or nonresidential, with nonresidential property constituting commercial businesses, farms, ranches, and oil/gas operations. In 1982, the Gallagher Amendment was implemented in Colorado to hold the proportion of taxable value derived from residential property at approximately 45%.

By Bethany Cronk, Senior Vice President at HVS Denver, HVS

Colorado, United States

Opinion Article

April 22, 2021

Q1 2021 Major US Hotel Sales Survey

Upon reading his obituary in the press, the American writer Samuel Clemens, known by his pen name Mark Twain, famously remarked, "The report of my death was an exaggeration." Although there is no question that the global pandemic has adversely impacted many, the world has not ended.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

March 20, 2021

New ALTA/NSPS Land Title Survey Standards for 2021

The survey standards for the American Land Title Association® (ALTA®)/ National Society of Professional Surveyors (NSPS) survey were updated in February 2021. Given how important this survey is to most commercial real estate transactions, it is crucial that investors understand its scope in order to avoid unnecessary costs and delays. JMBM associate Trevor Countryman has outlined these recent changes below.

By Trevor Countryman and Jim Butler

United States