Hotels and Resorts
In recent years, there have been numerous marketing articles and communication strategy workshops on the need to have a social media presence. This need is validated by the tens of millions of hotel reviews on websites like TripAdvisor, where travelers give their feedback about hotels, effectively serving as an unpaid focus group. Read more including two case studies, to learn about this increasingly important trend.
The U.S. hotel sector, now rebounding from the Great Recession, is on more solid footing thanks to a return to core real estate principles and conservative lending practices, creating the stability required to respond to changing customer values. Read about the trends in hotel development, possible changes driven by technology, and where the boutique hotels are leading the brand hospitality firms.
After undergoing the worst downturn in revenue and demand since the Great Depression, the hospitality industry made a rapid recovery in 2010. While markets like New York, Boston, Miami, and San Francisco are back to prerecession peaks, other markets are seeing increases only in the number of rooms booked, rather than pricing. Find out what else was said about this at the ULI Spring Council Forum.
Resort communities and hotels have suffered the blows of the recession and are beginning to see the light of day. A panel of developers at ULI’s 2011 Spring Council Forum in Phoenix discussed just how this sector is faring and where the opportunities lie now. Read to what degree the panelists think the resort sector is emerging from the recession.
According to Trepp LLC, the U.S. commercial mortgage-backed securities (CMBS) delinquency rate (comprised of the percentage of loans 30+ days delinquent, in foreclosure, or held on the books of the lender as real estate owned (REO)) increased 23 basis points (0.23 percent) in April to 9.65 percent, the highest rate in history and the largest increase on a monthly basis since December 2010. See the break out by property sector and read the key takeaways.
“As the recovery in the industry strengthens, hotels have become an attractive sector,” says ULI’s Hotel Development Council chair. But parties entering the hospitality industry should study it carefully, says the owner of Hotel Granduca, which recently posted its highest occupancy ever. Read what other industry insiders are saying about doing business in this sector during the economic recovery.
2010 ended on a strong note with all-in 10-year mortgage spreads in 5.25%+/- range which should have proved attractive to all but the most jaded investors. But as they say, it’s still “early days” and few lenders have announced plans and targets for 2011.
This week’s Monday’s Numbers should be subtitled: “Credit Suisse Group Sells $2.8 Billion European Commercial Property Loan Portfolio for $1.2 Billion”
The Commercial Mortgage Alert Trepp weekly survey of 15 active portfolio lenders widened slightly during the most recent survey period. It’s year-end, and lender’s are starting to focus on next year’s allocations. If it’s a typical start, rates will be up slightly as lenders test the waters as to what spreads will work and what borrowers” will accept. We’ll see if the current glass ceiling of 5.0 percent holds or if it’s off to the races in 2011.
The Commercial Mortgage Alert Trepp weekly survey of 15 active portfolio lenders came in slightly during the most recent survey period. During the period, 10-year Treasury bond yields were unchanged. There seems to be an all-in cost of 5.0% “glass ceiling” in place. For the survey period, average all-in cost equaled 5.02%, the “present” glass ceiling. Not much is expected to happen during the next two weeks so we’ll sit on the sidelines and wait for January’s allocation to re-fill lender’s coffers.