News
YOU CAN BUY HOSPITALITY
April 27, 2010
| People are ready to buy distressed hospitality assets, PKF Capital Hotel Realty managing director Hank Wolpert tells us, but there are some hurdles: the spreads on ask-bid; the recovery time for industry fundamentals; and defining future exit strategy. | |||
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| PKF's brokerage group, which goes under Colliers International Hotels outside the US, lists a wide range of hotel and resort assets, including Silverado Resort in Napa Valley (above), which includes 1000 acres, two 18-hole golf courses, 280 guest condo hotel units and private cottage suites, 13k SF of meeting space, 10 swimming pools, 16 tennis courts, three dining facilities and a 16k SF spa.Hank says the PKF Capital name for the US brokerage group will cease next month, likely becoming the Colliers International, Hotel and Resort Group. The PKF Consulting name will likely remain due to its longevity in the industry. | |||
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| In conjunction with Dallas and Houston Colliers International, PKF is jointly marketing the entire city-block Humble Building in the Houston CBD. It's 524k SF of mixed-use including two hotels, apartments, retail, and garage. Locally, the 409-room DFW Airport Hotel and Conference Center (formerly Ramada) on Hwy 183 is offered on as a deep value turnaround, Hank tells us. PKF has two other divisions: research and consulting, covering feasibility studies, appraisals, litigation support, and general advisory service. | |||
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| PKF Consulting's Jeremy Stone, with PKF Capital Hotel Realty's Melanie Pugmire and Hank (PKF Consulting's Lisa Swain rounds of the team). Jeremy says hotels with cash are investing in improvements, while those who refinanced and overleveraged are struggling; they've got a good product, they just can't pay the bills with the hard times. Melanie predicts slow recovery in hospitality. When she's the one looking for a vacation, she travels to Park City, Utah, about every 6-8 weeks to visit her family and ski. And we learned Jeremy once lived in New Zealand teaching real estate at the University of Auckland. (We hear in the southern hemisphere, the cranes all rotate in the opposite direction.) | |||
