Most franchised select service and full-service hotels require on-site restaurants to comply with franchise requirements. However, most hotel owner/operators consider running a hotel restaurant a necessary evil, and most hotel restaurants do not make money. In addition, hotel guests do not care to … [Read more...] about 6.1.17: Hotels Seek Chain Restaurant Owners/Operators as Partners
A few years ago I wrote about predatory Americans with Disabilities Act (ADA) litigation that affected one of our clients. He paid $25,000 to settle a lawsuit brought by an attorney for a guest alleging that the ADA grab bars in the hotel shower were too high. Although the suit was without merit, … [Read more...] about 7.13.16: Why an Arizona Woman Sued More Than 30 Hotels at Which She’d Never Stayed!
In a further indication of the loosening of credit standards, the typical soft lockbox/springing cash management requirement as defined by Wells Fargo (see below) for hotels has been reduced to the springing lockbox/springing cash management structure. “Our borrowers really had no conceptual problem … [Read more...] about 7.25.14: Lighter Lockboxes for Hotels
Lender competition for CMBS conduit loans for hotels, particularly limited-service hotels owned by AAHOA members, is contributing to rapidly declining interest rates for borrowers. In addition, small balance borrowers ($3 million-$10 million) are enjoying low interest rates that were previously … [Read more...] about AAHOA Alert! 4.30.14: CMBS Conduit Loan Rates for Hotels Fall Below 5%
Two pervasive messages of the Lodging Conference held at the Arizona Biltmore on Tuesday were more qualitative than quantitative, despite the general mindset of commercial real estate investors to focus on numbers. The key takeaways? The hotel sector’s good times may soon be over -- though that … [Read more...] about 9.17.13: For Hotels, Is the Party Over?