CBRE Hotels’ Americas Research Reports Hotel Markets Coming into Balance As Demand and Supply Growth Rates Converge

 

R. Mark Woodworth

Atlanta, GA,  Sept. 7, 2016 – The magnitude of change in the major industry indicators is not pleasing U.S. hotel owners and operators.  New development activity continues to accelerate, while growth in average daily room rates (ADR) has decelerated.  

The sluggish start during the first half of the year resulted in another downgrade by CBRE Hotels’ Americas Research of its forecast for the entirety of 2016.

“It has been very interesting dissecting the performance of the U.S. lodging industry during the first half of 2016,” said R. Mark Woodworth, senior managing director of CBRE Hotels’ Americas Research.

 “On the one hand, we are comforted by the continual growth in accommodated demand.  After all, if people stop traveling, nothing else really matters.  

"On the other hand, there continues to be a disconnect between the record occupancy levels and the inability of hoteliers to increase room rates.”

According to STR, U.S. lodging demand increased by 1.6 percent during the first half of 2016 compared to the first half of 2015.  At the same time, hotel rooms supply rose by just 1.5 percent, resulting in a 0.1 percent boost to occupancy.  With demand and occupancy on the rise, ADRs did increase by 3.1 percent, but this is less than the 4.1 percent pace seen during the first half of 2015 and the annual 2015 growth rate of 4.4 percent.

John B. (Jack) Corgel

 Based on the first half performance data, CBRE Hotels’ Americas Research adjusted its forecast for the year 2016.  According to the firm’s September 2016 Hotel Horizons® forecast that was released at the STR Hotel Data Conference, U.S. hotels will enjoy a 0.1 percent increase in occupancy for the year, concurrent with a 3.5 percent rise in ADR. 

This results in a RevPAR gain of 3.6 percent.  The occupancy forecast represents an improvement over the 0.1 percent decline presented in June 2016 edition of Hotel Horizons®, but the ADR and RevPAR forecast rates are 0.8 and 0.6 percentage points less, respectively.

“When analyzing prices in any industry, it is common to gauge movements relative to the pace of inflation, or real change,” said John B. (Jack) Corgel, Ph.D., professor of real estate at the Cornell University School of Hotel Administration and senior advisor to CBRE Hotels’ Americas Research.

  “In real terms, the 3.5 percent nominal increase in ADR forecast for 2016 represents a 2.5 percent real change.  This will be the eighth greatest real change in ADR since 1988.”

For a complete copy of the company’s news release, please contact:

  

Chris Daly

Daly Gray Public Relations

703 435 6293

chris@dalygray.com

https://pip.cbrehotels.com

Five New Models Unveiled at The Ritz-Carlton Residences, Chicago, Magnificent Mile

Mike Golden

 CHICAGO, IL –With a nod to the surging luxury condominium market in downtown Chicago, NM Project Company, LLC, owner of The Ritz-Carlton Residences, Chicago, Magnificent Mile, has unveiled five new model homes at the boutique condominium building.

Comprised of 89 condominiums, this residence property is one of the city’s only high-end new-construction developments with homes available for immediate delivery.

Residences are priced from $900,000 to $10,000,000. For more information or to schedule a showing, call 312-266-8880 or visit www.heresidenceschicago.com.

“The market for luxury new-construction in the city is very strong and current inventory is limited,” said Mike Golden, co-founder of @properties, the exclusive sales and marketing firm appointed by NM Project Company.

“Buyers at the high end want the best finishes and amenities. At The Residences, they can enjoy timeless materials and exquisite craftsmanship as well as the extraordinary level of service only offered by The Ritz-Carlton.” 

Kathleen Malone

 The new model homes showcase a variety of floorplans and city views, including: Residence 22D, a one-bedroom, 1½-bath home with 1,423 square feet; Residence 17B with two bedrooms, 2 baths and 1,505 square feet; Residence 17C with two bedrooms, 2½ baths and 1,912 square feet; Residence 27F, a two-bedroom, 2½-bath with 1,937 square feet; and Residence 18A, with two bedrooms, 2½ baths and 2,240 square feet. 

“Unlike other buildings that may share services with a luxury hotel component, this is the only hotel-branded condominium building in Chicago in which a dedicated residential staff devotes its sole attention to residents and does not also have hotel guests to serve,” said Kathleen Malone, an @properties broker and the sales manager for the development.

“If a luxury homebuyer is looking for a lifestyle in which needs are anticipated and service is delivered consistently and effortlessly, then The Residences are in a distinct category.”

 For a complete copy of the company’s news release, please contact:

Lehia Franklin Acox, lfacox@taylorjohnson.com, 312-267-4511

Peter Olesker, polesker@atproperties.com, 312-334-8360

Meridian Capital Group Arranges $56.1 Million in Construction Financing for a Dual-Branded Hotel Located in Downtown Fort Lauderdale, FL

Ronnie Levine

, New York, NY, Sept. 7, 2016– Meridian Capital Group, America’s most active debt broker, arranged $56.1 million in construction financing for the development of a new dual-branded hotel property located in Fort Lauderdale, FL, on behalf of Wurzak Hotel Group and DoveHill.

The four-year construction loan, provided by Bank of the Ozarks, features full-term interest-only payments. 

This transaction was negotiated by Meridian Senior Managing Director, Ronnie Levine and Vice President, Aggelos Sklavenitis, who are both based in the company’s New York City headquarters.

The dual-branded property, located at 299 North Federal Highway in downtown Fort Lauderdale, is slated to contain both a 209-room Tribute Portfolio hotel, named The Dalmar, and a 114-room Element by Westin hotel, both brands of Starwood Hotels and Resorts Worldwide.

The building will rise 23-stories and will feature amenities including a rooftop lounge, sky lobby, infinity pool, gym, landscaped deck with a garden relaxation area, approximately 24,000 square feet of meeting space, a coffee bar, a restaurant, approximately 4,000 square feet of retail space on Northeast 3rd Street as well as a 212-space parking garage.

Aggelos Sklavenitis

Downtown Fort Lauderdale is a vibrant 24/7 live, work and play community and the 0.77 acre development site is one of the largest development sites in the area. 

The property is conveniently situated at the southwest corner of Federal Highway (US 1) and 3rd Street.

The hotels will cater to business travelers, young professionals who want to be in close proximity to downtown and central business districts offices, as well as tourists who are attracted to a more authentic and boutique-style alternative to the traditional beach hotels in the area.

“Meridian was able to leverage its strong lending relationships to obtain construction financing for the 299 North Federal Highway transaction,” explained Mr. Levine. “The high-quality sponsorship and the strategic location of the property made the deal stand apart from other opportunities in the market,” he added.

“We are proud to have been a part of this transformative project that fills an obvious void in the Fort Lauderdale hospitality landscape west of the Intracoastal.”

Howard Wurzak

Meridian is headquartered in New York City with offices in New Jersey, Maryland, Illinois, Ohio, Florida and California. www.meridiancapital.com

  

DoveHill is an independent real estate investment company founded in 2010 by Howard Wurzak and Jake Wurzak. 

Howard and Jake collectively have 50 years experience in underwriting, acquiring, redeveloping, developing and repositioning of real estate projects. 

For the past 17 years their focus has been the hospitality sector and they have demonstrated an ability to excel using a low cost-basis, value-enhancing, institutional-quality approach to the development of hotel projects.

For a complete copy of the company’s news release, please contact:

Jonathan Stern

Meridian Capital Group

212/972-3600

jstern@meridiancapital.com

www.meridiancapital.com

 www.wurzakhotelgroup.com

www.dovehillcos.com

Meridian Capital Group Arranges $23.9 Million in Permanent Financing for the Purchase, Renovation and Partial Buyout of a Fractured Condominium in Tamarac, FL

Jay Jacobovitch

New York, NY.  Sept. 7, 2016 – Meridian Capital Group, America’s most active debt broker, arranged $23.9 million in permanent financing for the purchase, renovation, and partial buyout of a fractured condominium located in Tamarac, FL.

The three-year bridge loan features a LIBOR-based floating rate, beginning at 5.06%, with full-term interest-only payments. 

This transaction was negotiated by Meridian Senior Vice President, Barry Lefkowitz and Senior Vice President, Jay Jacobovitch, who are both based in the company’s Iselin, NJ office.

Jasmine at Tamarac, located at 8560 NW 61st Street in Tamarac, FL, is a two-story garden style property, totaling 222 rental units and 69 sold condos. The property offers a wide range of amenities, including a business center, laundry facility, swimming pool, fitness center and access to public transportation.

“The property is a fractured condo complex, where the borrower is purchasing the rental units and intends to rehabilitate those units in order to raise rents,” said Mr. Lefkowitz.

“The borrower also plans to buy out all of the existing condominium owners, renovate their units and convert the property to a fee-simple multifamily complex,” he added. “The lender has agreed to a loan which will fund 75% of the purchase and rehabilitation cost, in addition to funding 75% of the borrower’s future purchases of the remaining condo units.”

For a complete copy of the company’s news release, please contact:

Jonathan Stern

Meridian Capital Group

212/972-3600

jstern@meridiancapital.com

www.meridiancapital.com