Tuesday, May 1, 2012
OAKBROOK TERRACE, IL, (May 1, 2012) – Christenson Advisors announced today the results of its 2012 Commercial Real Estate Lending Compensation Survey, which show an increase in compensation, recruiting activity and business activity across the commercial real estate lending industry, when compared to 2011.
The survey assessed organization metrics, compensation program structure and pay levels for leadership positions within executive management, originations, asset management and other key functional areas.
“While we continue to face a bumpy road ahead, we saw an increase in transactional activity last year which, in turn, had a positive impact on the debt side of the business” said Kevin Christenson, founder and managing principal of Christenson Advisors. “Notwithstanding further economic or financial mishaps, we expect to see continued improvement across the commercial real estate lending industry during 2012”.
The average total compensation for chief executive officers at companies with more than $2 billion in assets under management was approximately $3.2 million in 2011, while average total compensation for the same position at companies with $2 billion or less in assets under management was slightly above $1.1 million.
The survey included public and private national companies and commercial real estate lending groups that provide first mortgage loans, bridge loans, preferred equity, joint venture equity, mezzanine financing, senior debt and B-notes, amongst other lending products.
For results from Christenson Advisors’ 2012 Commercial Real Estate Lending Compensation Survey, or to view other results from surveys conducted by the company, go to http://www.christensonadvisors.com/surveys.
Christenson Advisors is a full service real estate consultancy firm which provides customized, hands-on executive recruiting, compensation consulting, financial advisory and management consulting services to the global real estate industry. The Company was founded in early 2008 and is headquartered in Chicago with satellite offices in Dallas, Los Angeles and New York. CA is a recognized leader in providing creative, strong, and enduring solutions to public and private real estate organizations in an ever-changing market.
Additionally, CA Funds Group, Inc., a sister company of CA, is an SEC registered broker-dealer focused exclusively on providing capital raising and related advisory services to the global real estate industry.
For more information, go to http://www.christensonadvisors.com/.
U.S. Hotel Profit Recovery Widespread; PKF Trends® Survey Reports 12.7 Percent Profit Growth In 2011
The recently released 2012 edition of Trends® presents aggregate average changes in unit-level revenues, expenses and profits from 2010 to 2011. The data come from a sample of nearly 7,000 financial statements received from hotels located throughout the United States.
For the Trends® report, hotel profits are defined as net operating income (NOI) before deductions for capital reserves, rent, interest, income taxes, depreciation, and amortization.
“On average, hotels in the 2012 edition of Trends® sample saw their profits increase by 12.7 percent in 2011. The good news is not isolated to a select few property categories, but rather, all hotel types were able to enjoy gains on the bottom-line,” said R. Mark Woodworth (top right photo), president of PKF-HR.
Resort hotels led the way with an NOI gain of 18.1 percent, followed by full-service hotels which posted a 14.7 percent increase in profits. “Not surprisingly, these two property types also achieved the greatest gains in average daily room rates (ADR) from 2010 to 2011,” Woodworth noted.
Lagging in profit growth were suite hotels. Both extended-stay and full-service suite hotels were unable to leverage their lofty occupancy levels into the magnitude of ADR gain required to significantly drive profitability.
“While news of growing profits is welcome, longer-term U.S. hotel owners know that their investment still has a ways to go to achieve the annual dividends that were earned prior to the recent recession,” Woodworth added.
“In 2011, the average Trends® hotel achieved a profit level equal to $12,972 per available room. In nominal dollars, this is roughly 25 percent short of the peak profit levels achieved in 2007.”
For a complete copy of the PKF report, please contact:
R. Mark Woodworth
PKF Hospitality Research
Tel: 404 842 1150, ext 222
Daly Gray Public Relations
Tel: 703 435 6293
The Real Estate Capital Institute(r) is a volunteer-based research
organization that tracks realty rates data for debt and equity yields. The
Institute posts daily and historical benchmark rates including treasuries,
bank prime and LIBOR. Furthermore, call the Real Estate Capital RateLine at
7RE-CAPITAL (773-227-4825) for hourly rate updates.
The Real Estate Capital Institute(r)
3517 West Arthington Street
Chicago, Illinois USA 60624
Contact: Jeanne Peck, Executive Director