Hotel owners, brokers and lenders share key takeaways
Hotel owners, brokers and lenders share key takeaways
30 OCTOBER 2017 7:44 AM

There’s some uncertainty in the hotel lending environment, so hotel owners, brokers and lenders shared their thoughts to help guide the way forward. 

Jeffrey Kolessar, SVP of development, GF Management
“It’s going to continue to be a good, stable market. There’s not going to be anything to shy people away from doing hotel deals. Certainly we’re not going to shy away from investment. We will be cautious with our underwriting, but at the end of the day, deals are still going to continue to get done. It’s a good industry for the long-term cash hold and return person.”

Bill DeForrest, president and CEO, Spire Hospitality
“I think we’re still in that growth environment. The industry is in a good spot. There’s noise around what could happen, most of which we can’t control, but if we continue to do what we do and do it well and stay focused on running our business well and being smart about how we deploy capital, I think we’re still in a very good spot.”

Danny Givertz, SVP, Hunter Hotel Advisors
“At the end of the day, I think it’s good to be in the hotel industry. I agree we’re not running for the hills. We’re confident and positive in where our industry is going.”

Michael Morton, VP of owner relations, Best Western Hotels & Resorts
“With everything going on, seeing this steady but not exciting growth, you need someone to operate hotels efficiently and drive that bottom line.”

Robert Rauch, president and CEO, RAR Hospitality
“I don’t see supply as a problem. I’m in agreement with most here it’s not a problem at the moment. Demand is very strong. Occupancy and rate levels continue to be good. Debt and equity are readily available, so that’s all good news. Transaction volume is up, which is even better news. Things are happening.”

Rushi Shah, principal and CEO, Aries Conlon Capital
“There’s uncertainty in the market. There’s some vulnerability in the markets. Some outside factors could have impact. It could disrupt, and it could slow things down, but it’s not on the horizon for another 18 months.”

Bill Blackham, president and CEO, Condor Hospitality Trust
“There are still plentiful opportunities available to invest by carefully analyzing the markets, the products and the circumstances surrounding that investment.”

Nate Sahn, SVP, CBRE
“There’s a great desire still to transact and a great desire among lenders to lend, and that’s going to drive more deals to get done. Supply is an issue, but there’s also demand growth as well.”

Steve Martens, president, The Martens Companies
“It’s refreshing to recognize that the hospitality industry is still attractive to capital markets. Look at all the different signals from the deal flow, to availability of funds to the demand and everything. There continues to be a lot of strength in the cycle.”

Mark Kallenberger, founding principal, Kallenberger Jones & Company
“The supply surge looks scary, but there are new conditions. Construction times and construction costs will slow that surge in supply, so we’ll be fine.”

Bob Clasby, managing director of North American development, Best Western Hotels & Resorts
“The deals that come across my desk are all reasonable deals; they’re well-thought-out deals. I’m not seeing any irrational exuberance from 2006, 2007. My biggest concern is construction costs and what that’s going to do to our building, to our new construction. We’re doing 60%, 65% now. That’s what worries me most.”

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