The big news in the hospitality industry last week was the report that Allen Rosenberg, a Woodmere-based developer and landlord, is in contract to buy the Garden City Hotel for $91 million.
The principals in that transaction aren't ready to talk, but a look at Rosenberg's other ongoing hotel project might be instructive for anyone wondering about the future of the venerable Garden City institution.
Airport hotels ranked second behind luxury hotels in the estimated $5.5 billion the industry spent on capital on existing properties in 2007, according to Bjorn Hanson, head analyst at the hospitality division of PricewaterhouseCoopers.
There are more than 20 generally upscale hotels in the planning stages across the United States, including hotel outlets in Chicago, Salt Lake City and San Francisco, says Jan Frietag, vice president of Global Development at Smith Travel Research.
CapMan Plc has established a new private equity real estate fund,
CapMan Hotels RE Ky, investing in hotel real estate. The fund has
today signed an agreement on the acquisition of a EUR 805 million
hotel portfolio of 39 properties from Northern European Properties
Ltd (NEPR). The establishment of the new fund raises the total
capital managed by CapMan by some 27 per cent to approx. EUR 3.8
billion. The establishment of the fund is estimated to have a
slightly positive impact on CapMan's result for 2008.
NEW DELHI: Residential hotels are all set to debut in India. Such hotels combine the flexibility of a vacation home with the service of a hotel.
Real estate developer, DLF will soon come up with India’s first branded residential hotel with the Hilton Group in Goa. The 200-room hotel with 80 villas that will be sold out as vacation homes on lease-back basis, will be operational in three years. DLF plans to have six hotels on similar format in five years.
But last year, property REITs — companies that own portfolios of commercial real estate like hotels and office buildings, and make up the bulk of the market — posted negative returns of 15.7 percent, on average, according to the National Association of Real Estate Investment Trusts.
Many investors had fled everything related to real estate because of the sagging housing market, though industry analysts attributed the reversal of fortunes for REITs largely to the credit problems that started in the subprime mortgage market. There are worries that these problems could eventually weaken the economy and stifle demand for commercial space.
CHENNAI: Following the boom in the real estate sector, the hotels and hospitality sector appears poised for a major push over the next two to three years. According to some estimates by the Union Tourism Ministry, there can be an up to 80 per cent rise in hotel rooms in the next two years.
Rooms are difficult to come by in New Delhi, Kolkota, Mumbai, Chennai, and Bangalore in particular. There are centres where not many quality or star hotels are available, but industrial and commercial development has already taken place. The hotel chains may be taking their time to develop facilities there.
