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GE Shares Rise on Hopes for Rebound in 2020

mycloud HOSPITALITY·14 March 2019
General Electric on Thursday forecast another year of falling profits and negative cash flow in 2019 but investors appeared to be cheered by its assurances that things would be “significantly better” in 2020. The struggling conglomerate, which is in the midst of a major turnaround under new CEO Larry Culp, said it would make an adjusted profit of 50 to 60 cents per share this year — below analyst estimates of 70 cents — and lose as much as $2 billion in cash from its industrial operations.

Greystone Hotels Reveals Details for Transformation of Downtown Santa Rosa Historic Buildings to The Hotel E

Hotel F&B·14 March 2019
Eric Horodas, President of Greystone Hotels, and Hugh Futrell, President of Hugh Futrell Corporation, announce new details on their upcoming joint project: the transformation of downtown Santa Rosa’s historic Empire Building and adjacent 19 Old Courthouse Square building into a 71-room boutique hotel. The Hotel E will be located at 37 Old Courthouse Square and will open to the public in two phases, with the first phase debuting in late spring 2019. The Hotel E will be the first new hotel in Santa Rosa since the devastating wildfires of October 2017. Renderings of the hotel can be found here and model room images can be found here.

Can you overcome five risks and crate wealth?

BERKONOMICS by Dave Berkus·14 March 2019
Of course, we are speaking of increased valuation of your company when we speak of “wealth.” Especially if you are in the early stage of growing a business, these five risks can and often do derail entrepreneurs before realizing the riches of a great exit. So, let’s examine them and mitigate them. Make you wealthy someday.

Sage Hospitality sells Halcyon brand, Denver property

Hotel Management·14 March 2019
Sage Hospitality, a Denver-based hotel investment, development and management company, along with Denver-based developer BMC Investments, announced the sale of the Halcyon hotel in Denver to Rockbridge Capital. Dallas-based Makeready will take over management of the property. In addition to the 154-key hotel, Rockbridge acquired the Halcyon and B&GC brands, which were developed and trademarked by Sage Hospitality.

Two Hotels Change Hands, One Gets Financing

Hotelier Middle East·14 March 2019
Hotel Business is tracking transactions, with two properties being sold and one receiving financing.

New Report Reveals Decrease in Travel Fraud Despite Breaches·Requires Registration ·14 March 2019
E-commerce fraud prevention firm Forter has released its biannual Fraud Attack Index, which highlights the rapidly shifting e-commerce landscape and breaks down how changes in this fragile ecosystem can affect online merchants and their omni-channel offerings.

The Simple Secret Behind Why Acquisitions Fail

mycloud HOSPITALITY·14 March 2019
Corporate acquisitions often fail for a simple reason: the buyer pays too much. An old Wall Street adage comes to mind: “Price is what you pay; value is what you get.” When our investment firm purchases shares of a stock, we pay a price that is within pennies of the last trade. But when a company is acquired, the purchase price is negotiated during long dinners at fine restaurants and usually goes higher than the latest stock quotation.
Article by Fred Novella

3 Important Reasons Why Hotel Asset Managers Have Become Such Hot Property

Global Asset Solutions ·14 March 2019
Indeed, given the volatility in the travel market many hotel owners would no longer take the risk of entering a relationship with a hotel operator without the ongoing support of a hotel asset manager.Employed by the asset owner, the role of a hotel asset manager is to ensure a property reaches its full potential so that it can create increased returns in the long term or be sold at the peak of its real estate value.Fred Novella, Managing Director at hotel asset management company Global Asset Solutions, outlines the three main reasons why hotel asset managers have come to play such an invaluable role.Reason #1: They bridge the knowledge gap between owners and operators When owners and operators enter a hotel management agreement, they often do so with different objectives in mind.The operator may naturally be more focused on protecting their brand and on growing their footprint, while the owner may be looking at maximising their profits or the value of the asset.Although the management agreement usually goes some way towards aligning these objectives, it often leans slightly more towards the operator.This misalignment wouldn't necessarily be an issue if there was a greater symmetry between the hospitality expertise of the owner and that of the operator.But large hotel owners aren't always professional hoteliers. They're more likely to be financial institutions, funds, real estate companies, high-net-worth-individuals, etc. - often with little operational experience in hospitality.This lack of experience means they may sometimes struggle to identify the right operator in the first place. And even when they do, they may not always know what to look out for when negotiating the best terms and conditions.This is where we as hotel asset management professionals step in.Our experience in hotel operations, contract negotiations, development and performance management, along with our track record of working with high-profile international management companies in different world regions, gives us the level of expertise some owners may be lacking.And while operators can also offer a great deal of local and tactical expertise during agreement negotiations - often hand in hand with the advice received from their legal representatives - it may not be enough.Hotel asset managers bring a much broader understanding across geographical markets, segments, property types, best practices, brands and operators.This big-picture thinking can be helpful while owners are choosing an operator that's right for their property. Our early involvement often prevents future conflicts down the line.Once a hotel property is operational, we then provide the owner with regular detailed reviews of the financials, Profit & Loss, balance sheets, budgets, cash flow, as well as any advice on capital expenditure.We provide support to the hotel management team with regards to sales strategies, food and beverage marketing plans and any other issues relating to the future of the hotel.We also regularly make sure the voice of operators and the local management team is heard by the owner on security issues, industrial action, delays in opening or any other urgent matters.Reason #2: They are the owner's eyes and ears on the ground Hotel asset managers make sure communications between the owner, the hotel management company and their local team are coordinated in the most efficient way.Our role is to ensure all information - positive and negative - reaches the ownership as quickly as possible. This creates a win-win for the owner and the operator.By being proactive and truthful in all reporting, we make sure there are no surprises for the ownership later on.Each asset manager takes a slightly different approach, but most will produce a monthly market review and a monthly profit and loss review which highlights any major issues.These reports are based on information provided by the operator which is then standardised to make it more easily digestible for the owner.The reforecast and the PACE are also closely monitored to ensure the hotel finishes the year on target or above.We also verify balance sheets, cash flow, summaries of monthly capital expenditure projects, etc.In doing so, we make sure all provided data has been calculated correctly and follows the latest USALI guidelines.We also highlight key points relating to operational departments, operating expenses, human resources, cash flow, balance sheets, statistical data, etc.When it comes to capital expenditure, the asset manager will regularly provide owners with a detailed analysis of where the asset is at, along with the best strategy for going forward.We always seek to immerse ourselves at a property level so that we can provide this type of high-level service.We study how the asset is run, review its capital expenditure, booking pace, the types of groups coming into the hotel - indeed, anything that may impact the profitability of the property.During the construction and pre-opening phase, we will also provide boots on the ground with ongoing site visits and meetings with the regional operational team, future general manager and steering committee.As hotel asset managers, we rely on our detailed knowledge of the hospitality industry across a number of regions, but our experience of working with a variety of different operators is also very helpful.It allows us to support general managers and their teams in using the latest techniques and international best practices relating to hotel sales and marketing, revenue management, commission levels and flow-through.Beyond the level of the individual property, we have an in-depth knowledge of the tourism industry as hotel asset managers.It gives us great insights into potential disruptors affecting the market (think Airbnb, HotelTonight or other OTAs) and any developments in digital marketing, online booking tools and social media - not to mention their impact on commission fees.Reason #3: They act as an arbiter in resolving potential tensions between operators and ownersAlthough as hotel asset managers we are accountable only to the asset owner, our role is to build bridges across different teams.Those who buy into the cliche of the aggressive asset manager telling operators how to run their businesses, will no doubt be disappointed by the courteousness, professionalism and ease with which our interactions take place.Instead of micro-managing general managers and their executive teams, our success depends on our ability to work collaboratively.To achieve the best result on behalf of the owner, we need to be able to work harmoniously with the operator's corporate office as well as local teams on the ground.We're often well aware of the tightrope many general managers are expected to walk between demonstrating accountability towards the hotel owner (as they should), their regional manager and the corporate office (as is often the case).Hotel asset managers regularly provide additional backup to general managers when it comes to pushing for more support from the wider brand, particularly when the local team doesn't feel able to speak up - for example on issues relating to better engineering supervision or increased sales and marketing support.This is why we spend so much time trying to get a full picture of the specific dynamics and limitations each general manager works under.Given the need we talked about earlier to align interests, the role of a hotel asset manager can of course be adversary too.After all, we need to ensure owners only get billed for justifiable expenses and cross-check that revenue and cost items are booked in the right departments.It is also our job to help ensure the best executive team is in place and see to it that operators comply with the most recent accounting standards.Mistakes can and do happen of course. When we pick up a particular issue, we'll first approach the general manager with a request to rectify it.If disagreement with the local team persists, we may then escalate it to the corporate office.If no solution can be found at that point, we'll seek to mediate and identify a way forward which is acceptable to all parties.If it involves an accounting issue, we may also be required to contact USALI.The owner is always informed of any mistakes we pick up on, although minor ones will mostly be dealt with without their direct intervention.Of course, the management team may occasionally consider us a 'fly in the ointment'.But they also know well enough that by us challenging the status quo, they're more than likely to benefit from improvements in practice and performance themselves.ConclusionAlthough still more common in upscale, full-service hotels operated by regional and international hotel companies - hotel asset management is a thriving profession.Given the complexities of the hospitality market, many asset owners highly value the stability and clarity we bring within the relationship between the owner and the operator.And while our ultimate responsibility is to maximise the profit and value of a specific asset, our role has evolved beyond a solely 'checking the books' function.Indeed, our impartial expertise in areas as diverse as real estate, operations, sales, capital expenditure, strategic positioning and marketing, has made us an essential partner in some of the most successful owner/operator relationships.

As the Industry Evolves, a New Kind of DORM is Emerging

mycloud HOSPITALITY·14 March 2019
If there’s anyone who understands the true value of a holistic and cohesive revenue strategy it’s Mike Medsker, who has worked across many of the hotel departments that touch revenue, from sales to marketing to revenue management. Mike worked his way up from the property level to the corporate level before branching off to start his own revenue strategy consultancy, Focal Revenue Solutions.

HSMAI ROC & DOC - Updated program

HSMAI Europe ·14 March 2019
ROC 'n Roll, Collaborate and Interact with thought-leadersWelcome to Europe's number one place for the latest trends and news in Revenue Optimization, Digital Marketing and Distribution for the travel and hospitality industry at Melia Palma Bay and Palau de Congressos de Palma, co-located with HITEC Europe 2019- and you are very welcome to attendYou'll want to ROC 'n Roll all day long when you meet our many speakers and delegates. We have a great venue and we will raise the energy level with the best speakers, great music and food.Press here to see our updated programDid you know?HSMAI will be in Palma de Mallorca hosting several events from April 9th to April 11th. Have a look by pressing here.Do you need accommodation?The HSMAI activities takes place next door to Hotel Melia Palma Bay. We have reserved many rooms there and also at other Melia Hotels.The rates for all hotels are 159 euro per night including breakfast and vat. For double rooms (2 persons) the rates are 174 euro. Press here to secure your room already today!A big thank you to our dear Partners

Eventbrite's International Growth Hits Major Snag

mycloud HOSPITALITY·14 March 2019
Going global in the events sector is tough. Eventbrite has the added pressure of being a public company, and investors have soured on the company's potential despite its ambitious plans for a global event technology platform.

Top 5 Mistakes to Avoid When Booking Meetings on the Hill

mycloud HOSPITALITY·14 March 2019
Washington has had the reputation as a good ole boys club for decades. If you weren’t in the inner circle, getting things done on Capitol Hill was an uphill battle, pun intended. However, times are changing. Not only are women taking over a larger portion of the seats at the table, a new wave of representatives is bringing about new opportunities for advancing legislation for associations.

Brexit Is Already Affecting UK Businesses -- Here's How

mycloud HOSPITALITY·13 March 2019
Most “uncertainty shocks” throughout history – like the 9/11 attacks, the 1973 OPEC oil price shock, or the assassination of President John F. Kennedy – generate a surge in uncertainty which subsides reasonably quickly. Markets learn about what has happened and typically gain more confidence over time.

AHLA Reacts To Court Ruling Upholding Santa Monica Short-Term Rental Law

mycloud HOSPITALITY·13 March 2019
The American Hotel & Lodging Association (AHLA) issued the following statement today from President and CEO Chip Rogers in response to the ruling by a three-judge panel of the United States Court of Appeals for the Ninth Circuit defeating Airbnb’s appeal to Santa Monica’s law regulating short-term rentals.

3 Important Reasons Why Hotel Asset Managers Have Become Such Hot Property

Hotel Online·13 March 2019
Hotel asset management is a booming profession. Thanks to the increasing complexities of today’s hospitality market where disruptors seemingly turn up out of nowhere and operators consolidate at a fast rate – it is easy to understand why. Indeed, given the volatility in the travel market many hotel owners would no longer take the risk of entering a relationship with a hotel operator without the ongoing support of a hotel asset manager.

CBRE Research Forecasts Healthy RevPar Growth for U.S. Hotels in 2019 and 2020

Hotel F&B·13 March 2019
Continued favorable economic fundamentals are expected to lead to U.S. hotel rooms revenue per available room (RevPAR) growth of 2.5 percent in 2019 and 2.0 percent in 2020, according to the latest forecast from CBRE Hotels Americas Research.

Can Hotels Sue Their Governments Over Home Sharing?

Hotel Online·13 March 2019
This is a special case that I’ve been waiting to write about since it hit the airwaves here in Canada in late October. Most interesting here is that it has a few powerful implications for the fight traditional hotels are facing against industry disruptors coming in the form of home sharing.

The Effect of IPOs on Transportation Network Companies

Hotel F&B·13 March 2019
There's good disruption and bad, and plenty of corporate travel buyers will argue whether the disruption in ground transportation by transportation network companies like Uber and Lyft has been good or bad for their travel programs. One thing's for sure: Business travelers overwhelmingly think it's good. They like the ease of the ridehailing app experience and are seduced by TNCs' low prices.

Buying & Selling in Denver, Cleveland, Philly; More...

mycloud HOSPITALITY·13 March 2019
Hotel Business is tracking transactions. Rockbridge, Glenmont, Cambridge Landmark and HREC are making deals.

Spotlight on: investing in hotels

Click by·13 March 2019
Hotel demand continues to rise, and with it, new opportunities for both investors. According to property consultants JLL’s Hotel Investment Outlook 2019, Europe has been particularly strong, with approximately 60% of pipeline rooms under construction in Germany and the UK. In North America, while hotel performance has been increasingly steadily over the past decade, its pipeline has slowed marginally. In Asia, Africa and the Middle East, pipeline as a share of existing hotels has gone up.

Lumber Liquidators Settles Fraud Case for $33M

mycloud HOSPITALITY·13 March 2019
Lumber Liquidators Holdings has agreed to pay a $33 million criminal penalty to settle allegations it made fraudulent statements to investors that Chinese-made laminate flooring it sold in the U.S. complied with safety standards.

Deal Report: This Week's Hotel Sales and Acquisitions

Hotel F&B·13 March 2019
Rockbridge this week announced the acquisition of Halcyon in Cherry Creek, Denver’s affluent submarket and high-end shopping district, from Sage Hospitality and Denver-based developer BMC Investments. The 154-room luxury hotel is Rockbridge’s most recent lifestyle property. Makeready, which specializes in independent hotels and restaurants, will manage the hotel, restaurants, and bars. In addition to the property, Rockbridge acquired the Halcyon and B&GC brands, which were developed and trademarked by Sage Hospitality.

Preparing Your Restaurant for When ICE Comes Knocking

Modern Restaurant Management·13 March 2019
Ok, let’s be honest. Immigration and Customs Enforcement (“ICE”) does not knock. They just show up. With the Trump Administration’s aggressive push toward dealing with undocumented immigrants in the workforce, restaurant owners and operators can expect ICE to show up at their establishments more frequently than in prior years. With a large amount of relatively low-skilled workers and a high-turnover rate, combined with record

TopHotel Tourism & Leisure Investment Conference 2019

Meetings Today Blog·13 March 2019
TopHotel Tourism & Leisure Investment Conference is a unique annual event that brings together hotel owners and managers, tourism professionals, developers and operators to discuss the future of the tourism industry.

World economy cooling, will impact tourism·13 March 2019
The world economy is going to decline and risk is going to increase over the next year, said Clemens Fuest, president of the Munich-based Ifo Institute, an economic research body.

Rotana starts 2019 on a positive note with sustained performance across key markets·13 March 2019
Reflecting its strength and resilience, Rotana reported positive results across the three key performance metrics in the first two months of 2019 in spite of the economic outlook for the region.


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