Hotel Management October 3, 2011 : Page 1

■ ➔ EMEA PIPELINE .. pulse The United Kingdom has the largest construction pipeline in Europe. The Leading Hospitality News Authority Since 1875 Vol. 226, No. 12 | October 3, 2011 216 projects 29,096 guestrooms 4 percent growth by projects year over year Source: Lodging Econometrics SEE PAGE 10 FOR MORE TRENDS & STATS DOUBLE DIP? Market turbulence affects hotel deals Transaction volume slips during fi rst half as REITs retreat and private equity moves in By Andrew Sheivachman ASSOCIATE EDITOR ➔ ■ HYATT HOTELS CORP. The Hotel Sierra Charlotte (N.C.) and the rest of the Hotel Sierra brand were acquired by Hyatt Hotels Corp. in August. New parent N ATIONAL R EPORT – From late 2010 through the first half of 2011, real estate investment trusts led the way in the most robust ho-tel transaction market since be-fore the fi nancial crisis of 2008. But the wild fl uctuations that hit the stock market in mid-August have many lodging investors con-cerned with the prospect of a po-tential double-dip recession. Hotel Management spoke with a variety of hotel industry vet-erans to fi nd out more about the eff ect of recent volatility on future hotel transactions and valuations. Jones Lang LaSalle Hotels re-ported in July that $7.4 billion in hotel transactions had taken place in the fi rst six months of 2011, and forecast a total for the year of more than $10 billion. REITs so far have totaled $4.1 billion in hotel invest-ment through August. Private eq-uity, however, was responsible for See Turbulence | page 32 Study: Cap-ex spending rises for the fi rst time since 2008 Research shows 30-percent increase in spending this year By Andrew Sheivachman ASSOCIATE EDITOR ONE-ON-ONE Bjorn Hanson , divisional dean of NYU’s Preston Robert Tisch Center for Hospitality, Tourism and Sports Management, forecasts $3.5 billion in cap ex this year. N EW Y ORK –A new study fi nds that lodging capital expenditure by owners on property improvement has risen this year for the fi rst time since 2008, sig-naling a potential expectation of rising rates. “Brands were allowing owners to defer some cap ex, understanding owners were facing fi nancial challenges,” said Bjorn Hanson, divisional dean of New York University’s Preston Robert Tisch Cen-ter for Hospitality, Tourism, and Sports Manage-ment. “When owners weren’t forced to spend, they See Cap-ex spending | page 49 MONTAGE HOTELS & RESORTS’ See page 18 ALAN FUERSTMAN Expansion is in the works for this luxury brand ■ ➔ TRENDS & STATS. inside this issue DEVELOPMENT. TECHNOLOGY. RFID locks gain popularity Increased supply is driving RFID tech costs down. PAGE 34. EMEA construction pipeline up Europe, the Middle East and Africa post gains, with the U.K. in the lead. PAGE 10. Orlando Four Seasons details Developer Larry Silverstein outlines the new Disney World project. PAGE 12.

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