Earlier this week, the Global Hospitality Group® co-hosted a breakfast briefing in Los Angeles with CREDE, a leading real estate development and project management firm. The program focused on how hotel owners and developers can reduce their cost of capital and costs of construction while filling in gaps in their capital stack through a few critical construction management techniques and exploitation of both traditional and alternative financing options.

Luigi Major, Managing Director of HVS, opened the program with an economic overview, providing an inspiring update on the state of the industry. His data shows depressed urban markets like San Francisco and San Jose are now enjoying double digit RevPAR growth, and some formerly red-hot leisure markets such as Santa Barbara have softened (-24% RevPAR growth). Business travel continues to get stronger and leisure travel is slowing. Cap rates are rising, but only by 40-90 basis points, which is modest compared to the interest rate environment. Luigi believes this is due to hotels coming into favor as a class of real estate.

David Sudeck, JMBM partner and senior member of the Global Hospitality Group®, led an interactive panel with Keegan Bisch, Vice President of Stonehill, and Colby Durnin, CEO of CREDE. The panelists talked in terms of actual deals in the pipeline or those recently completed, where financing new construction or renovation has been challenging. They shared current resources to fill capital stacks on projects, including C-PACE and EB-5 financing, and strategies to control or even reduce construction costs by up to 10% or more.

You can download a copy of the program presentation here.

We plan to host more breakfast briefings in the coming months; if you have suggestions for future topics to discuss at these events, of if you would like to join the mailing list for invitations, please contact [email protected].

*See how JMBM’s Global Hospitality Group® can help you.

About the JMBM Global Hospitality Group®

The hospitality attorneys in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP comprise the premier hospitality practice in a full-service law firm, and the most experienced legal and advisory team in the industry. Our team of seasoned hotel lawyers has helped clients with more than 4,600 hospitality properties located around the globe valued at more than $123 billion, and have worked on more than 2,700 management and franchise agreements. Our experience provides one of the most extensive virtual data bases of market terms for deals and financings. The hospitality lawyers of our team are not just great hotel lawyers—we are also hospitality consultants and business advisors, dealmakers and facilitators of the flow of capital. We help our clients find the right operator, joint venture partner or capital provider. We know who to call and how to reach them.

Jim Butler
+1 310 201 3526
JMBM

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