CORONAVIRUS
281 | Rescue Capital: Hotel financiers seek opportunities to invest in distressed assets
CORONAVIRUS
In June, Watermark Lodging Trust, a Chicago REIT, sold its Hutton Hotel in Nashville for $70 million. The price is $7 million less than what the REIT said it paid to acquire and upgrade the hotel seven years ago.
A month later, Watermark said it signed a deal in which it sold shares worth $200 million to a joint venture between Ascendant Capital Partners and Oaktree Capital Management.
The influx of cash will be used to keep Watermark in business and give Ascendant and Oaktree preferred equity positions. Watermark will pay the JV a 12 percent annual dividend rate.
The activity is a harbinger of what’s to come as hotel owners struggling to stay afloat amid the economic downturn caused by the coronavirus pandemic may soon be forced to sell their assets at a discount or borrow money to keep paying their mortgages.
In this episode of Lodging Leaders podcast, we explore what opportunistic investors might have in store as the lodging industry faces the possibility of mortgage defaults.
We talk to financiers who are stepping up with what they call “rescue capital” to help owners get to the other side with their businesses intact or be among the first to reap a return if an asset is forced to go to market. And we talk to asset managers who advise on how to position your hotel to either survive the crisis or go to market.
Our report features Amanda Chivers, managing principal at Crown Hospitality Consulting in Atlanta; Evens Charles, president and CEO of Frontier Development & Hospitality Group in Washington, D.C.; David Turley, principal at Cronheim Hotel Capital in New York City; and Brian Waldman, executive vice president of investments at Peachtree Hotel Group in Atlanta.
READ: Click here to view the expanded multimedia report for this episode.
Resources and Links
- 278 | CMBS Distress: Thousands of hotel owners seek relief from billions of dollars in debt
- Daniel Lesser’s full presentation
- Amanda Chivers of Crown Hospitality Consulting
- Evens Charles of Frontier Development & Hospitality Group
- David Turley of Cronheim Hotel Capital
- Brian Waldman of Peachtree Hotel Group
CORONAVIRUS
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287 | The Long Haul: Extended-stay hotels show their strength in a crisis
Extended-stay hotels are weathering the coronavirus crisis better than their transient cousins, according to reports. The Highland Group’s half-year report shows economy and mid-priced extended-stay hotels are faring better than upscale extended-stay accommodations. Second-quarter earnings reports from companies such as Extended Stay America prove the resiliency of the sector, especially when sales teams shift their focus to new prospects such as college students, leisure travelers who value the kitchen and essential workers in it for the long haul. Long Live Lodging examines what gives extended-stay its muscle in a weak economy. This report is part of our ongoing coverage of the coronavirus crisis and its impact on the hotel industry.
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285 | ‘Allure of the Door’: Exterior-corridor hotels trending in COVID-19 pandemic
Almost overnight, the roadside motel is a hot commodity. Travelers are going by car and when they stop they want the safest stay possible. The coronavirus pandemic has pushed health and safety to the top of hotel guests’ most-favored-amenity list and exterior-corridor properties appear to provide more of a risk-free stay than their interior-corridor cousins. Long Live Lodging examines the new shine travelers have put on exterior-corridor motels during the COVID-19 crisis and how brands heavy with motel-style properties are responding to the trend. This report is part of Long Live Lodging’s ongoing coverage of the coronavirus crisis and its impact on the hotel industry.