Leisure Real Estate Blog

Is meth the new "Mold"

Thursday, August 25 2016 8:58 AM
Categorized In General Comments

The manufacturing of methamphetame leaves residues that can be quite toxic.  As a result, regulations have been

instituted to protect the public from housing where previous meth use and manufacturing took place.   The original meth regulations

were brought to be through the extensive use of residual housing to manufacture the meth products.  Meth use and manufacturing

has become more prevalent in multifamily, commerial real estate and hotels.  Depending on the state, a meth discovery in your property

can initiate a series of local or state regulations to determine whether meth is present and what needs to be done if it is.  William Frye posted

a brief article in the online version of Lodging,which should get you thinking about investigating the mandatory protocols that could affect your

property if a meth discovery is made at your hotel.  Here is the link:  http://lodgingmagazine.com/meth-labs-a-dangerous-hotel-challenge/

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ADA compliance

Tuesday, May 31 2016 3:25 PM
Categorized In General Comments

In the past, I have written about a variety of ADA (Americans with Disabilities Act) articles penned by others, including attorneys with ADA specialties.

I have always been a big fan of Jim Butler and his global hospitality team, JMBM, based in CA.   I don't often run at

Jim's level of the hospitality business, but his blogs and website have been a wealth of information to myself and many of my

clients.  In this case, Jim has coauthored an ebook (with his partner Martin Orlack) on ADA compliance that has a wealth of information

in it.  I have included a link to the ebook and I would suggest that you take some time to review its contents.

I guarantee you will learn something that could possibly save you a lot of money.

http://www.jmbm.com/ada-representation.html

 

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Have we reached the price peak

Friday, April 8 2016 8:56 AM
Categorized In General Comments

For those of us who have been in this business long enough to experience numerous cycles, they all have similarities.  Since the recession, we have come off several years of significant expansion, including escalating prices.  Although we are emerging from a much deeper hole than past cycles, the expansion has been notable.  I am often asked by owners, if we at at the top of the cycle, and what do things look like going forward.  Based on past cycles, signs are beginning to appear that indicate a flattening of prices due to increased supply, performance issues related to various lagging business segments and tightening of credit markets.  Those signs have occured in every cycle since the 80's and foretold of a slowing in the expansion or at least the escalation in prices..  

My observations are very similar to those espoused by panelists at the Hunter Hotel Conference, and published in an online article in HotelNewNow.

I would be interested to hear if anyone has the same perceptions or differing opinions.

http://www.hotelnewsnow.com/Articles/36836/Panelists-Supply-surge-affects-hotel-values-cap-rates

 

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AirBnB

Wednesday, March 30 2016 11:31 AM
Categorized In General Comments

Many hoteliers I talk to are not that concerned about the impact of AirBnB.  However, our location in the Midwest

might have something to do with that response.  If you are in a gateway city or similar high profile destination, you might think

differently.  Check out the article posted in Hositality Business News regarding the Penn State University's study on Phoenix.  AirBnB is

becoming hard to ignore.

http://hospitalitybusinessnews.com/20160324925/ahla-whines-over-airbnb

The link to the full Penn State study follows:

http://www.ahla.com/uploadedFiles/_Common/pdf/Phoenix_Report_PSU.pdf

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ADA lawsuits

Friday, March 11 2016 10:46 AM
Categorized In General Comments

My colleagues and I are inside more hotels than most people.  And we rountinely see defieciecies relating to the American Disabilities Act.

I am not an expert on the Act and therefore, I do not know if the deficencies are related to the "reasonable accomodation" standards.

However, I highly suspect many do not meet that standard.  In an article published in Hospitality.net newletter, Matt Anderson of the law firm Jaburg Wilks in

Phoenix, published a brief article regarding the "tester" ADA lawsuits in AZ.  I found his comments very informative.

http://www.hospitalitynet.org/news/4074551.html

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Lenders' caution?

Tuesday, February 9 2016 9:09 AM
Categorized In General Comments

For those of us who have experienced multiple real estate cycles, we are looking for signs of overheating,

and we are not the only ones.  Lender's are too.  The following links to an article by Fitch Ratings posted on Hotel Online,

provides an overview you might find interesting.

http://zmaildirect.com/tr/d/m3b737z3ad37z32v32h33938j35632837l32l00/109/435119 

 

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New web design

Saturday, February 7 2015 11:22 AM
Categorized In General Comments

If you have browsed our website before, you may have noticed that we recently launched our new website design.  We are commited to provide our visitors with an easy to navigate site.  Furthmore, we do not want you jump through hoops, just to review our listing portfolio, or to view basic, non confidential information.  You don't have to "register" or fill out a form.  If you choose to register for future announcements, we make it very easy.......................all you need is your name and email address.  Thanks for visiting us and please don't hesitate to call any of us with questions and commnents.

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Leisure Real Estate Advisors has launched into the Blogosphere

Saturday, July 31 2010 7:21 AM
Categorized In General Comments

Napoleon Hill, an American author, once said, “Don’t wait, the time will never be quite right”.  And so it is with Leisure Real Estate Advisors and network media.   I must admit, I have resisted for quite awhile, but we have finally taken the plunge into the blogosphere.  As a result, welcome to my 1st post.  At Leisure Real Estate Advisors, we have always tried to stay on the cutting edge of technology, especially as it pertains our web based marketing campaigns.  However, it has become evident we can also distribute industry information, changes in our listing portfolio and our opinions of the market through the posting of blogs.  More importantly, we will learn from your comments and will provide us, and our readers, valuable insight to a variety of hospitality topics (and a few other things, too, I suppose!!).

A COMMENT ON THE STATE OF THE INVESTMENT MARKET

Like nearly every business in the country, (except the federal government and its startling growth), the hospitality business has been a bit of a struggle.  Over the last 18 months, occupancy, ADR’s and RevPar have all dropped and in some instances by 25% or more.  In the central US, we haven’t been hit as hard as the coasts, but the effects have still been felt.   With regards to the buying and selling of hotels, and as it relates to the recession, the drop in revenue has caused profitable hotels to become break-even or worse.   Most of us would agree that such a property would be distressed.  (I know investors think so!!)   In order to sell a hotel in financial distress, a seller needs to be very motivated to sell.  That is to say, without cash flow sufficient to meet debt service, the market considers your hotel to be in distress, no matter how new and pretty you are.  Secondly, without cash flow, the seller will need a buyer with the financial capability to purchase the property on his/ her own financial strength, without the strength of cash flow.  Everyone knows these folks (buyers) are around, but they will not pay a premium for upside they will create nor from operations they will improve.    Those deals are getting done through motivated sellers and very qualified buyers.  If, on the other hand, your hotel shows appropriate cash flow for the price point, it will appeal to the marketplace.    It isn’t rocket science…..the cash flow will provide the best opportunity to gain financing for the transaction, through conventional methods or through government programs such as SBA or USDA.

In spite of the recession and investor caution, our activity has remained strong.   Buyers and sellers still differ on opinions of value, (which is certainly not a new phenomenon), but the gap is narrowing.   Sellers are realizing investors will not purchase based on pre-recession revenues and prices.  And, it could be years before the basic fundamentals improve to those levels again.   I have been through three major investment cycles since the mid 1980′s,  so this cycle was not unexpected.  However, the severity and depth of the cycle was unexpected.  We are seeing signs of improvement in the basic fundamentals of the hotel businees, but it could take some time to get back to 2007 levels.  As for me, I have always held there is a deal to be made on every property, sooner or later……….one just has to find it.

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