CBRE Hotels Research Finds U.S. Hotel Performance Decelerates Through 2020, But 2021 Improves

R. Mark Woodworth

                         

ATLANTA, GA -– Shifts in the depth and timing of an expected slowdown in the nation’s economy have impacted CBRE Hotels Research’s outlook for the U.S. lodging industry over the next few years. 

 According to the September 2019 edition of Hotel Horizons^®, CBRE’s forecasts for RevPAR changes in 2019 and 2020 have been adjusted slightly downward, but the outlook for 2021 has improved.

“Changes in various components of the U.S. economy and their relationship to U.S. hotel demand fluctuations are well understood," said R. Mark Woodworth, senior managing director, CBRE Hotels Research.

"This is what drives the econometric model that informs our forecasts for U.S. lodging market performance. As a result of the rapidly changing prospects for the nation’s economy, we have adjusted our forecasts of lodging demand and ADR appropriately.”

CBRE projects GDP growth to average 1.9 percent during the second half of 2019.  This is half the pace of growth during the first half of the year.  

Accordingly, CBRE Hotels Research forecasts a deceleration in U.S. lodging performance during the final six months of 2019.  After rising by 2.1 percent during the first half of the year, the pace of demand growth will slow to 1.4 percent for the balance of 2019. 

 As a result, CBRE now forecasts the national occupancy level to decline by 0.2 percent from 2018 to 2019.

“Fortunately, room rates alterations tend to lag occupancy changes.  Therefore, the annual increase in ADR will remain steady at 1.1 percent,” said Woodworth.  For the year, CBRE is now projecting a RevPAR increase of just 0.9 percent, 110 basis points below the forecast the firm published in June of 2019.

The 2019 demand slowdown will show its negative impact on ADR next year.  CBRE’s forecast for ADR growth in 2020 has been lowered to 2.0 percent.  

“Downward pressure on room rates also will come from a rise in new hotel openings,” Woodworth added.  “Our 2020 supply growth forecast now is 2.1 percent, which is greater than the long-run average of 1.8 percent. 

"This will drive a 0.8 percent national occupancy rate decline for the year.”  For 2020, CBRE is forecasting a RevPAR growth rate of 1.2 percent.  This, too, is a downward adjustment from 90 days ago."

CONTACTS:

PATRICK DALY

OFFICE MANAGER

DALY GRAY PUBLIC RELATIONS, INC.

620 Herndon Parkway, Suite 115 | Herndon, VA 20170

Main: 703-435-6293

Mobile: 703-300-8289

patrick@dalygray.com | www.dalygray.com

Chris Daly

Daly Gray Public Relations

703 435 6293

chris@dalygray.com

JLL arranges $34 million financing for 7EMPIRE in San Jose, CA

7EMPIRE is  a 97-unit, Class A, art-focused multi-housing community in the Silicon Valley core.

SAN FRANCISCO, CA – JLL announced  it has arranged $34 million in debt financing for the development of 7EMPIRE, a 97-unit, Class A, art-focused multi-housing community in the Silicon Valley core.

Derek Allen

JLL worked on behalf of the developer, TriForge Capital Partners, to secure the 13-year, fixed-rate construction-to-permanent loan with Guardian Life Insurance Company of America. 

TriForge Capital Partners is led by development groups LandForge and developURBAN. The JLL Capital Markets team previously coordinated venture equity on behalf of the developer.

“The TriForge team appreciates the contributed value and insightful perspective provided by JLL,” echoed Derek Allen of LandForge and Neal Yung of developURBAN. “As a trusted partner, they’ve helped us kick off a meaningful and sustainable development, which integrates local community spirit into a boutique-sized, design-forward offering.”

Collin Eckles

“We set out to develop a community that fuses the way discerning residents want to live within spaces that world-class artists want to create,” added partner Collin Eckles, former president of Rose Rock Group, a Rockefeller company. 

“This effort will forge an inspiring exposé of youthful vigor and some of the best street art the world has ever seen, on par even with the Wynwood Walls murals of Miami, all within the aesthetic of Jtown.”

LandForge partner JIG Holding acknowledges the transaction as a good cultural fit for them as well, noting that, “Along with strong submarket fundamentals and a competent development team, it was the right time to enter the U.S. market after being active on multiple continents for the past 70 years.”

The JLL debt placement team representing the developer was led by Senior Director Chris Gandy.

Chris Gandy

7EMPIRE is currently under construction at 525 North 7th Street on the only remaining infill site in San Jose’s burgeoning Japantown neighborhood. 

The Japantown location provides direct connections to VTA light rail, bus and bike-share transit modes linked to nearby Silicon Valley employment centers.  

The 7EMPIRE site notably has immediate access to Jackson Street shops, grocers and restaurants as well as local artists, vendors and design studios, which comprise the Jtown Art Walk.

Due for completion in 2021, the USGBC LEED-designed property will encompass a mix of modish, forward-thinking residential dwellings; a 5,000-square-foot publicly accessible sculpture and street art park; 

Also: approximately 1,000 square feet of entry plaza retail and 131 parking spaces. An artist-in-residence program is currently planned, and the integral art park has been designed alongside the famed Empire Seven Studios to include community engagement activities.

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.

Deal secured by Holliday GP Corp. (California Department of Real Estate, License Number 01385740) prior to being acquired by JLL on July 1, 2019.

Contacts: 

Chris Gandy, JLL Senior Director 

California License No: 01899208

Phone: +1 415 276 6928

Email:  Chris.Gandy@am.jll.com

Olivia Hennessey, JLL Public Relations Specialist

Phone: +1 713 852 3403

Email: Olivia.Hennessey@am.jll.com

jll.com.

www.LandForgeCP.com.

www.developURBAN.com.

Blue Sky Hospitality Solutions Names Logan Jonas Corporate Revenue Manager

 

Logan Jonas

  

UNIONDALE, NY—Officials of Blue Sky Hospitality (BSHS), one of the leading and fastest growing hotel owner/operators in the United States, announced the company has named Logan Jonas corporate revenue manager. 

 In his new role, Jonas will be instrumental in assisting with market studies and identifying revenue opportunities as BSHS focuses on the continued growth of its portfolio.

                “With nearly a decade of corporate and property level revenue management experience at multiple hotels under myriad flags from Los Angeles to Texas to New York, Logan has proven he has the skill set we require to meet our aggressive growth goals,” said David Fincannon, COO, BSHS.  

 “Logan will work closely with both our corporate and field teams to improve bottom line results.  He will be one of many new executives joining our team in the coming weeks and months as we continue to expand our footprint across the United States.”

                Jonas most recently served as director of revenue management for The Conrad New York Midtown, where he led the commercial operations/strategy as the 562-suite hotel successfully converted from the independent London NYC.  

David L. Fincannon

Prior to that, he was director of revenue management for the 1,234-room Hilton Los Angeles Airport and the 349-suite Embassy Suites by Hilton Los Angeles International Airport South, where he was responsible for all revenue functions at both properties to help generate $100 million-plus of annual revenue. 

 Jonas held similar positions for numerous Hilton-branded hotels throughout the U.S.  He graduated summa cum laude and received his Master of Service in Hospitality & Tourism Management from the University of Central Florida. 

                “With its robust, active pipeline and growing portfolio, now is the perfect time to join the Blue Sky Hospitality Solutions team,” Jonas noted. 

 “The company recently doubled the size of its corporate offices to accommodate its sizable, though measured, growth.  I look forward to working with this dedicated team of hospitality professionals as we collectively work towards making BSHS the premier, most trusted partner in the hotel industry.”

Contact:

 Chris Daly, media

 (703) 435-6293

 chris@dalygray.com

  

NAI Realvest Completes New Lease for Academy for Children With Special Needs at Maitland Concourse in Maitland, FL

Camen Academy leased 5,040 SF in Maitland Concourse South
 to house a new school for children with special needs
 in Maitland, FL

Jeff Bloom

MAITLAND, FL ---NAI Realvest recently closed on a new lease for 5,040 square feet of professional office space in Maitland Concourse South to house a new school for children with special needs.  

 NAI Realvest Associate Jeff Bloom, CCIM represented the landlord, Maitland-based Congregation Ohey Shalom. 

Tenant Camen Academy LLC who leased the suite at 613 S. Concourse Parkway , Maitland , FL 32751 has several U.S. locations to conduct behavioral therapy for special needs children.  

The new school opened for the fall 2019 school year. 

Justin Walker

Justin Walker of Harbert Realty represented the tenant.

CONTACTS:

Jeff Bloom, CCIM, Vice President, NAI Realvest,

407-875-9989 jbloom@realvest.com

Patrick Mahoney, President & CEO, NAI Realvest,

407-875-9989 pmahoney@realvest.com

Beth Payan, Larry Vershel Communications Inc., 407-644-4142 

or 407-461-3781 beth@Larryvershel.com

www.NAIRealvest.com.

Michael Feinstein's Los Angeles, CA Mansion May Be Bought for $15 Million

Michael Feinstein's elegant Tudor Revival-style mansion
in the Los Feliz-Hollywood Hills section of Los Angeles
 is on the market for $15 million

Photo credit: Douglas Elliman     Source: www.elliman.com

LOS ANGELES, CA -- Michael Feinstein, a five-time Grammy recording nominee and today's curator of the Great American Songbook, owns an elegant Tudor Revival-style mansion in the Los Feliz-Hollywood Hills section of Los Angeles.

Michael Feinstein

 According to TopTenRealEstateDeals.com, It housed the Russian Consulate from 1935 through 1951 where many diplomatic events and intrigue likely took place. It is now for sale priced at $14.95 million.

In the 1700s and early 1800s, thousands of Russians migrated to Alaska to work in the fishing and fur-trapping business.

Katy Perry

 But in 1867 after Russia sold Alaska to the United States, many of the Russians left Alaska eventually expanding into San Francisco and Los Angeles.

Russian Hill in San Francisco bears testament to their strong presence there.

Angelina Jolie

In Los Angeles, they moved primarily to West Hollywood where people with Russian ancestry still represent about 15% of the population.

After World War I, the Russian government began paying close attention to the military industrial complex in the United States, especially the aircraft and weapons industries, much of which were based in the Los Angeles area churning out war planes and other military-related hardware.

Kirstie Alley 

 In 1935, the Russian government chose this home in L.A.’s Los Feliz neighborhood for its consulate, checking all the boxes for elegance, grand entertaining, impressive office and, perhaps, a good location to observe U.S. military production.

 In an era when spying was in its heyday, it’s likely that the walls of this mansion did talk - all the way to Moscow and Washington, D.C.

With its vantage point 15-feet above road level, the 15,391-square-foot mansion has views extending over Los Angeles to the coastline.

Built in 1926, it is filled with exquisitely crafted millwork and contains a grand entry foyer, large formal rooms opening to terraces through French doors, six bedrooms, seven baths, two movie theaters, fitness room, wine cellar, sunroom and a guest house with private entrance.

 Lushly planted grounds create privacy with a swimming pool, formal gardens and aviary.

Today, Los Feliz is better known for its celebrity residents such as Katy Perry, Angelina Jolie, Kirstie Alley and Mr. Feinstein than it is for its Russian history.

 Formerly a Russian Consulate during the Great Depression and World War II, Michael Feinstein has placed his longtime home on the market at $14.95 million.

 Listing agents are Ernie Carswell of Douglas Elliman, Beverly Hills and Dorothy Carter and Michael Orlando of Keller Williams, Los Feliz.

Tom Postilio and Mickey Conlon of Douglas Elliman are marketing consultants for the property.

CONTACT:

Genelle C. Brown
Content Manager, Media Division
TopTenRealEstateDeals.com
Phone:  434-480-4504
Twitter:  @toptenrealestat
facebook.com/toptenrealestat  

             

Banyan Investment Group Acquires 89-Room Fairfield Inn & Suites by Marriott Peoria East in Peoria, IL

Fairfield Inn & Suites by Marriott Peoria East

  

PEORIA, IL, Aug. 29, 2019--Banyan Investment Group, an Inc. 5000 recognized hotel investment and management company that acquires and manages select-service hotels in the United States, today announced that it acquired the 89-room Fairfield Inn & Suites by Marriott Peoria East. 

 The company also will operate the hotel, its eighth acquisition from its recently launched BIG Hotels LP I, LLC fund.

                “Due to our strong and longstanding industry relations, we were able to source this deal off-market at an attractive price at better than replacement costs,” said Rakesh Chauhan, president and CEO, Banyan Investment Group. 

Rakesh Chauhan

 “Equally important, this recently constructed property meets all our of acquisition criteria: it’s a strongly branded hotel in a market with exceptional demand generators that are able to better weather any fluctuations in the economy. 

"Peoria is a strong and stable market, and we look forward to becoming an active member of the community.”

Contact:

Chris Daly, media

 (703) 864-5553

 chris@dalygray.com

Newmark Knight Frank Brokers Two Industrial Leases Totaling 170,000 Square Feet in Medley, FL

Sky Groden

Miami, FL, Aug. 28, 2019 — Newmark Knight Frank (NKF) announced today the completion of two industrial leases totaling 170,000 square feet and valued in excess of $16 million.

 Both leases were executed at Medley Logistics Park, a three-building industrial development in Medley, Florida. 

The buildings are located at 12600 NW 115^th Avenue and 12630 NW 115^th Avenue.

A national warehousing and distribution company renewed its 134,000-square-foot lease at the park, while a beverage distributor signed a new lease totaling 35,000 square feet.

 NKF’s Executive Managing Directors Steven Medwin, SIOR, CCIM, and Nick Wigoda, SIOR, represented the institutional landlord, while Sky Groden of JLL represented both tenants.

Steven Medwin

“The completion of these leases keeps Medley Logistics Park at full occupancy,” Medwin said. “Retaining a 134,000-square-foot tenant is not an easy task in today’s market where new state-of-the-art buildings are popping up all over South Florida.”

“The success of these deals speaks to the benefits of modern logistics buildings, like Medley Logistics Park, that offer Turnpike visibility, excellent highway access and a strong institutional owner that knows how to treat an existing customer,” added Wigoda.

According to  NKF Research, Miami’s industrial market is outperforming Florida’s other major metro areas and held onto the lowest vacancy rate in the state for a third consecutive quarter. 

Medley is the fourth largest industrial submarket in Miami, totaling 27 million square feet.

Nick Wigoda

 During the first half of the year, Medley led demand for warehouse space with 300,000 square feet of net absorption. 

In 2Q19, Medley’s vacancy rate declined 1.2% despite having 420,000 square feet of new product under construction.

CONTACTS:

Liz Maddux 

· Assistant Account Executive

1718 Peachtree St., Suite 1048

 · Atlanta, GA 30309

M: 478-972-3210

www.thewilbertgroup.com

 www.ngkf.com.