Economy/Credit Market Meltdown Take Toll on Hotel Real Estate Sales in 2008

KANSAS CITY, Mo., May 6, 2009—Officials of Hotel Brokers International (HBI), the nation’s largest brokerage organization with more than 30 offices coast to coast, today released its TransActions Recap 2009, a comprehensive report on hotel real estate activity for 2008 and the organization’s forecast for 2009.

As a result of a deepening recession and hobbled credit markets, hotel transaction dollar volume in 2008 plunged 55 percent to $9.9 billion from $21.9 billion in 2007.

HBI believes the downtrend will continue in 2009, although volume in the second half should improve, due to pent-up demand and as commercial lending begins to respond to government stimulus efforts.

The 115-page publication, detailing more than 3,000 hotel transactions over the last five years, is available from HBI for $200.

“We believe these have been the most challenging conditions in our 50-year history, with the late 80’s/early ‘90’s a close second,” said Jeff Westgor, (top left photo) CHB, president, Westgor & Associates, Minneapolis, and president of HBI.

“Overall, the number of hotel transactions in 2008 was at its lowest level in five years.

"The one-two punch of a severe economic recession and a dysfunctional credit market, suffering from the disappearance of CMBS debt, has had a major impact on our industry, which previously had experienced five years of significant increases fueled by easy access to capital and the growth of RevPAR and earnings.”

(The Hilton Oak Lawn (top right photo) is a 12-story, 184-room hotel and conference center located three miles south of Chicago's Midway Airport. The hotel sold in January 2008 for about $100,000 per room. Donohoe Real Estate Services, Washington, DC, brokered the sale.)

Credit Crunch Biggest Impact on Transactions
Westgor added that the credit crunch had the biggest impact in 2008 on larger dollar transactions, those over $10 million.

According to HBI recorded data, sales of upscale and luxury hotels were off 57 percent, while sales of economy and mid-market properties, which account for the lion’s share of HBI transactions, remained relatively stable, down 11.2 percent.

Westgor noted that financing became significantly more difficult to obtain by mid-summer last year.

According to a recent HBI lending survey, by year-end 2008, some 75 percent of lenders said that they had reduced the number of hospitality loans underwritten.

With the capital markets seizing up, sales in the second half of 2008 declined by 24 percent, with upscale and luxury hotel sales falling 44 percent compared to economy and mid-market sales, which were off 11 percent in the second half.

For the full year, HBI recorded 481 hotel sales industry-wide, down 35 percent compared to 736 transactions in 2007. The average hotel sold had 146 rooms and sold for a price per room of $99,000, a 15 percent decline from 2007, driven primarily by a lower average price per room for upscale and luxury hotels.

The economy and mid-market hotels’ price per room held up, posting a slight increase from $42,000 in 2007 to $44,000 in 2008.

Sales of mid-market properties accounted for nearly 50 percent of all hotel transactions in 2008.

The most popular hotel segment among buyers was select-service without food and beverage, with 140 transactions, led by a high demand for brands such as Hampton Inn, Comfort Inn and Holiday Inn Express. Upscale with restaurants was the second most preferred segment at 112 transactions, with Courtyard by Marriott, Residence Inn and Hilton Garden Inn heading the list.

Contacts:

Glenda Webb, Hotel Brokers International, (816) 505-4315

Melanie Boyer, Daly Gray Public Relations, (703) 435-6293

Hotel Brokers International’s Transactions Activity Outpaces Industry Through 3Q

Industry-wide Transactions Down by $11 Billion Through September

KANSAS CITY, MO, Dec. 22, 2008—Hotel Brokers International (HBI), the nation’s largest hotel brokerage organization with more than 30 offices from coast to coast, today reported that hotel real estate transaction activity nationwide declined by more than 67 percent during the first three quarters of 2008.

The organization said that transaction activity among its member brokers also declined during the period, but at a lesser rate than the industry average.

Part of the difference is attributable to the availability of financing for mid-market hotels, which account for the majority of properties sold by HBI.

“The lack of financing has had its most dramatic impact on hotels that sold for more than $20 million,” said H. Brandt Niehaus, (top right photo) CHB, president of HBI and Louisville-based Huff, Niehaus & Associates, Inc.

“Hotel transactions under $15 million, which makes up the bulk of the hotel industry inventory and HBI’s sales, continue to get done because financing, primarily from local banks, continues to be available.

"The key is to have a proven track record as an operator and a long-term relationship with the lender. Major brands also are preferred product types.”

For the 2008 first three quarters, HBI tracked 216 public transactions across the industry, compared to 582 in the same period a year earlier.

Average transaction size declined from 199 rooms to 167 rooms and the average price per room fell to $108,000, compared to $120,000. Total dollar volume for the 2008 first three quarters was $6.4 billion, compared to $17.4 billion.

(Sheraton Safari Lake, Buena Vista, FL top left photo, not in financial trouble.)

HBI reported 57 transactions for the 2008 first three quarters, compared to 118 for the like 2007 period.

Capitalization rate for HBI transactions fell to 8.67 percent, compared to 9.17 percent, which was not statistically significant.

First mortgage loan to value was 71.0 percent with a 7.2 percent average first year interest rate, compared to a 74.5 percent first mortgage loan to value with an average first year interest rate of 8.0 percent.

(Cosmopolitan Resort and Casino, Las Vegas, NV, middle right photo, not in financial trouble.)

“We expect to see a mini-surge of activity at the end of year for owners who want to sell in this tax year,” he noted. “We expect 2009 to start off a little slowly and then begin to pick up as the year progresses.

"Our members have been in contact with more than 100 financial institutions in the past few months. They find that a lot of loans will be coming due in 2009 and the properties now are assessed lower than the loan value, and banks will likely take many of those properties back and place them on the market.

"With the hotel economy expecting to have a tough year, the gap between buyers and sellers will likely narrow.”

(Grant Hyatt Cairo, Egypt, bottom left photo, not in financial trouble.)

Niehaus noted that closing of transactions continues to take one to two months longer to wrap up than in 2007.

“Lenders are being more cautious and require more equity, usually 30 percent or more. We see that trend continuing through 2009. The key exception is SBA loans under $10 million which require as little as 20 percent equity. Fortunately, interest rates are declining and are at historically attractive rates. As in past cycles, cash is king.”

About HBI

Hotel Brokers International, with more than 100 hotel brokerage specialists, is the world’s leading hotel sales organization. The organization annually accounts for the greatest
market share of mid-market transactions in the United States.

In addition to the Hotel Investor’s Marketplace, HBI sponsors the Certified Hotel Broker program and publishes TransActions Recap, the leading source of hotel real estate sales data.

HBI currently has more than 150 properties listed for sale in its proprietary database and access to more than 15,000 hotel investors and owners. In addition to broker services, HBI offers affiliate membership to professionals in allied fields, including franchising, lending, appraisals and investment services.

For more information about HBI’s hotel listings or to become a broker or affiliate member, HBI may be reached at (816) 505-4315 or via the Internet at http://www.hbihotels.com/.

CONTACTS:

Patrick Daly, Daly Gray Public Relations, 620 Herndon Parkway, Suite 115, Herndon, VA 20170 Tel (703) 435-6293. Fax (703) 435-6297 patrick@dalygray.com

Glenda Webb, Hotel Brokers International, (816) 505-4315

Melanie Boyer, Daly Gray Public Relations, (703) 435-6293

Hotel Brokers International Sells Landmark 10,000th Hotel

Hotel Group Gears Up for 50th Anniversary

KANSAS CITY, MO—Hotel Brokers International (HBI), the nation’s largest hotel brokerage organization with more than 30 offices from coast to coast, has brokered its landmark 10,000th hotel transaction.

The deal comes as HBI prepares to celebrate its 50th anniversary in 2009.

A $10.2 million package deal of two Holiday Inn Express hotels included the 77-unit Holiday Inn Express, Austinburg, Ohio, (middle left photo) which sold for $5.6 million, and the 64-unit Holiday Inn Express, Newton Falls, Ohio, which sold for $4.4 million.

“We’ve sold more than 150 different branded hotels and countless independents in our 49-year history,” said H. Brandt Niehaus, (top right photo) CHB, president of HBI and Louisville-based Huff, Niehaus & Associates, Inc.

“These mid-market properties are typical HBI sales. The vast majority of our hotel transactions are in the mid-market segment, which, of course, dominates the industry.

" No organization sells more hotels in this sector than HBI. We also are active in virtually all the other segments from upper-upscale through economy.

“Through the first six months of 2008, HBI transactions remained strong, compared to the rest of the industry,” he said. “However, we expect hotel sales to pause while the market digests all of the changes currently taking place on Wall Street.

“Financing, while more difficult to obtain, remains available, particularly for hotel transactions below the $10 million to $15 million level. We expect hotel real estate transaction activity to gain momentum later this year and accelerate into 2009.”

Errol D’Souza, (middle left photo) CHB, president, Laurel Real Estate Co. of Columbus, Ohio was the HBI selling broker. “We arranged financing through the CDC in Ohio for two SBA 504 loans in order to get the transaction done in today’s market,” D’Souza said. “Mid-market hotels remain in high demand, and, fortunately, financing at historically attractive rates is available from multiple sources.”

Asmukh Patel and Rakesh Patel of New York, new owners of the properties, commented, “Errol D’Souza brought us two good assets and a professional management team to operate the hotels for us.”

Raxit Shah, (bottom right photo) president, Liberty Group of St. Petersburg, Fla. said, “As the seller, we found Errol’s professionalism created a transaction that allowed us to retain the management of the hotels. It worked out beautifully for both sides.”

CONTACTS:

Glenda Webb, Hotel Brokers International, (816) 505-4315

Jerry Daly, Patrick Daly, Daly Gray Public Relations, (703) 435-6293

Hotel Brokers International Completes 22 Transactions in 2008 Second Quarter; 43 in First Half

Price Per Hotel Up Significantly



(Photos of HBI featured properties on left side, from top, are South Carolina, 170 rooms; Virginia, 124 rooms; Minnesota, 32 rooms; Arkansas, 79 rooms. On the right side, from top, are Indiana, 66 rooms, Ohio 64 rooms, Connecticut, 104 rooms and Florida 200 rooms.)


KANSAS CITY, Mo., July 29, 2008—Hotel Brokers International (HBI), the nation’s largest hotel brokerage organization with more than 30 offices from coast to coast, today announced that its members sold 22 hotels in the 2008 second quarter, up from 20 properties in the same period a year earlier, for a total of 43 transactions in the first half.


Total transaction volume in dollars rose by more than 52 percent for the second quarter and was up 30 percent for the 2008 first half. Average price per room increased 11 percent for the second quarter and 41 percent for first half, compared to the 2007 first quarter and first six months, respectively.

Concurrently, HBI said that its TransActions Data Services Division recorded a total of 206 hotels sold in the 2008 first half for an aggregate $4.58 billion, down significantly from 486 hotels sold for more than $15.7 million in the first six months of 2007. HBI’s TransActions Data Services Division tracks all publicly announced sales across the nation.

“Larger transactions, those of more than $10 million, have declined significantly, with only 73 deals above that amount reported in the first half, compared to 258 in the same period last year,” said H. Brandt Niehaus,(top right photo) CHB, president of HBI and Louisville-based Huff, Niehaus & Associates, Inc.


“Mid-market hotel transactions have declined, but there still is a lot of active trading taking place, especially in the $10 million and under range. HBI has not seen the sharp declines experienced by the hotel brokerage community as a whole.


" We are seeing a lot of brokers who traditionally don’t deal in or have experience in transactions of under $10 million now seeking listings in this category. That, probably more than anything, describes the current ‘big-box’ hotels market. Fortunately, we have seen minimal impact on our business.”

Capitalization rates for the 2008 first half rose to 10.2 percent from 9.3 percent in last year’s first half.


Niehaus says, “Any time there is a significant shift in the economy, the expectations gap between buyer and seller widens. The buyer is looking ahead at the economy for his pricing and the seller is looking at the past year. Currently, there is about a 50 to 100 basis point spread between buyers and sellers.

“While it may sound self-serving, buyers and sellers need brokers more than ever in today’s market,” he noted. “A third party can build the necessary bridges and find creative ways to get deals done.”

Transactions are taking about 30 to 60 days longer to complete than a year ago, as lenders are requiring more due diligence.


“Equity requirements generally have increased from a range of 15 to 20 percent in early 2007 to 25 to 35 percent today. However, SBA loans under $10 million are still available with as little as 20 percent equity. Personal guarantees also are becoming a factor. Nonetheless, financing remains available at historically attractive rates. HBI brokers are playing a larger role in helping to identify funding sources and in putting the packages together.”

About HBI

Hotel Brokers International, with more than 100 hotel brokerage specialists, is the world’s leading hotel sales organization. The organization annually accounts for the greatest market share of mid-market transactions in the United States.

In addition to the Hotel Investor’s Marketplace, HBI sponsors the Certified Hotel Broker program and publishes TransActions Recap, the leading source of hotel real estate sales data.
HBI currently has more than 150 properties listed for sale in its proprietary database and access to more than 15,000 hotel investors and owners.

In addition to broker services, HBI offers affiliate membership to professionals in allied fields, including franchising, lending, appraisals and investment services.

For more information about HBI’s hotel listings or to become a broker or affiliate member, HBI may be reached at (816) 505-4315 or via the Internet at http://www.hbihotels.com/.

CONTACTS:

Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297, julie@dalygray.com

Glenda Webb, Hotel Brokers International (816) 505-4315

Melanie Boyer, Daly Gray Public Relations, 703) 435-6293

New Marketplace Format Attracts Large Number of First-Time Hotel Buyers

High Interest Despite Large Drop in Industry First Quarter Transactions

KANSAS CITY, MO—Hotel Brokers International (HBI), the nation’s largest hotel brokerage organization with more than 30 offices from coast to coast, announces its revamped U.S. Hotel Investor’s Marketplace program, recently held at the Hyatt Regency O’Hare in Chicago, attracted a strong mix of seasoned and first-time hotel buyers.

Attendees received a broad overview of the industry, as well as information on first quarter hotel transaction activity, which was down significantly.

“We believe the change in format has uncovered a pent-up demand for hotel investment,” said H. Brandt Niehaus, (top right photo) CHB, president of HBI and Louisville-based Huff, Niehaus & Associates, Inc. “Hotels arguably are the most difficult real estate asset class to own and can be intimidating to someone outside the industry.

"By providing a solid grounding in the basics of hotel real estate, potential new investors receive both a great overview and a look at investment opportunities available today.”

The revised one-day event is comprised of a half-day of education and updates on hotel trends, financing, hotel brands and hotel real estate pricing for hotel owners, investors, hotel management company executives and acquisition specialists.

Panels of lenders, operators, franchising executives and consultants provided a combination of cutting-edge trends and outlooks along with hotel basics. The second half of the day showcased 20 hotels currently being marketed for sale, as well as in-depth information on an additional 150 hotels listed for sale.

The two newly added panel discussions on lending and franchise financing were both well received, according to Niehaus.

The lender panel was moderated by Ron McCord, (top left photo) Milmark Hotel/Motel Investments, LLC, Wisconsin, and featured Brad Black, Hospitality Lending Specialist, CIT Small Business Lending, Adam Wonus, Vice President Franchise Finance, Mercantile Commercial Capital, and Melissa Butler, Senior Business Development Officer, PMC Commercial Trust.

Sponsors of the Chicago Marketplace include CIT Small Business Lending, Carlson Hotels Worldwide, Choice Hotels International, La Quinta Inns, Inc., Mercantile Commercial Capital, LLC, and PMC Commercial Trust.

HBI also will host Marketplace events later in the year in the Baltimore/Washington, D.C. area on October 8 and in Dallas on November 5. To register, go to http://www.hbihotels.com/marketplace.php.

CONTACTS:

Julie Tullbane, Daly Gray Public Relations,

T 703-435-6293. F 703-435-6297
julie@dalygray.com

Glenda Webb, Hotel Brokers International,

(816) 505-4315

Melanie Boyer, Daly gray Public Relations, 703 435 6293

Hotel Brokers International Adds New Members to Worldwide Network

Buffalo and St. Louis-based Hotel Brokers Join Organization

KANSAS CITY, MO—Hotel Brokers International (HBI), the nation’s largest brokerage organization with more than 30 offices from coast to coast, announces two new members have been elected to the organization: Buffalo Hotel Realty, LLC, headquartered in suburban Buffalo, N.Y., and Cape Girardeau, Mo.-based CRES Hotel Brokers.

The two firms’ principals, Larry Best (middle left photo) and David Donley (top right photo), bring more than 50 years of combined hotel and real estate experience.

“Their upstate New York and southeast Missouri office locations further diversify our organization geographically, and give our members greater ‘on-the-ground’ insights,” said H. Brandt Niehaus, (middle right photo) CHB, of Huff, Niehaus & Associates, Inc.

“Larry and David have extensive hotel and real estate backgrounds that reflect the integrity and accomplishment that are characteristic of HBI. Both have proven track records of successful hotel real estate sales and industry knowledge that will augment our current membership. Their savvy and skill will serve as valuable resources to HBI and their clients.”

Before acquiring Buffalo Hotel Realty in 2006, Best worked in a variety of hospitality industry segments, including sales and marketing and design and construction. “His extensive background in hotel construction and understanding of hotel operations give his clients – both buyers and sellers—an added dimension in hotel real estate,” Niehaus noted.

“He is rapidly establishing a strong track record,” he added. “Recent sales comprise mid-market hotels with and without food and beverage, including a full-service Holiday Inn and a Comfort Inn.”

Donley is the owner and president of CRES Hotel Brokers, as well as two sister divisions in commercial and residential real estate. With more than 20 years experience in commercial real estate, he is a lifetime member of the Realtors Million Dollar Club and has received the Masters Club Award and the Pinnacle Level Award of Excellence.

“David has a broad background in all aspects of real estate, as well as hotels, which will help his clients in locating properties that have greater growth potential,” Niehaus said.

Recent transactions include several Holiday Inn Express hotels, LaQuinta Hotel and a Comfort Inn in a number of Midwestern states. Additional information about CRES Hotel Brokers is available at http://www.creshotelbrokers.com/.

Contacts:
Glenda Webb, Hotel Brokers International, (816) 505-4315

Melanie Boyer, Account Executive, Daly Gray Public Relations, (703) 435-6293

Hotel Brokers International Revamps Hotel Investor’s Marketplace to Include More Education and Interaction with Lenders and Franchise Companies

KANSAS CITY, MO, April 15, 2008—Hotel Brokers International (HBI), the nation’s largest hotel brokerage organization with more than 30 offices coast to coast, today announced it has totally revamped its U.S. Hotel Investor’s Marketplace program to include more education, as well as greater interaction with lenders and franchise companies.

The first of the new series will be held from 12 noon to 5 p.m. on May 21st at the Hyatt Regency O’Hare (top centered photo) in Chicago.

“We tested the revised format at our East Coast event last fall and received a very positive response,” said H. Brandt Niehaus, (top right photo) CHB, president of HBI and Louisville-based Huff, Niehaus & Associates, Inc. “We attract a group of investors HBI’s Marketplace, who want to review the latest in available real estate and also get a good check on the state of the industry.

"Given the rapid changes that have and continue to occur in the marketplace, we believe these sessions will become even more meaningful. We will showcase 12 properties in formal presentations and have complete information on more than 100 exclusively listed properties.”

Added to the program will be panels of experts on: financing, franchising, ownership and brokerage that will provide insights and trends. Mark Eble, vice president of PKF Consulting, Indianapolis, will provide an overview of national and regional markets. Additional speakers will provide tips on how to operate properties more competitively in a slowing economic environment.

“One of the keys to the success of this program has been the opportunity to meet with all the key parties involved in a transaction,” said Scott Brash, (top left photo) host HBI broker and president of Brash Realty Co., Inc.

“Buyers get a chance to review a wide cross-section of hotels, meet with lenders to determine if the project is financeable and talk to franchisors to get a preliminary understanding about which flags the hotel may qualify for. This can reduce the purchase process by as much as 60 days, and substantially reduce acquisition costs.”

Marketplace offers full- and limited-service hotel acquisition opportunities, panel discussions with the industry’s leading experts, and networking sessions.

The event is sponsored by Carlson Hotels Worldwide, LaQuinta Inn, Choice Hotels International, CIT Small Business Lending and PMC Commercial Trust.
Early registration is $49 through May 9 and $109 thereafter.

HBI also will host Marketplace events later in the year in the Washington, D.C. area on October 8th and at a third location to be announced at a later date. To register, go to http://www.hbihotels.com/marketplace.php.

Hotel Brokers International, with more than 100 hotel brokerage specialists, is the world’s leading hotel sales organization. The organization annually accounts for the greatest market share of mid-market transactions in the United States. In addition to the Hotel Investor’s Marketplace, HBI sponsors the Certified Hotel Broker program and publishes TransActions Recap, the leading source of hotel real estate sales data.

HBI currently has more than 150 properties listed for sale in its proprietary database and access to more than 15,000 hotel investors and owners. In addition to broker services, HBI offers affiliate membership to professionals in allied fields, including franchising, lending, appraisals and investment services.

For more information about HBI’s hotel listings or to become a broker or affiliate member, HBI may be reached at (816) 505-4315 or via the Internet at http://www.hbihotels.com/.

CONTACT:

Melanie Boyer
Account Executive
Daly Gray Public Relations
(703) 435-6293

Glenda Webb

Hotel Brokers International

816 505 4315

Hotel Real Estate Sales Continue Hyper-Active Trend in 2007; 2008 Expected to Remain Quite Active

KANSAS CITY, MO—Hotel Brokers International (HBI) the nation’s largest brokerage organization with more than 30 offices coast to coast, has released its TransActions Recap 2008, detailing hotel real estate activity for 2007 and its forecast for 2008.

Last year was a record year in dollar volume of transactions, as well as average selling price per room. The 104-page, data-rich publication, with more than 1600 sales comparisons from 2003 through 2007, is available from HBI for $200.

Highlights of the report point out that 2007 was a mixed bag, ranging from mega-deals, such as the Blackstone Group’s purchase of Hilton Hotels Corporation, valued at $26.3 billion, to transactions below $5 million. Transactions in the under $15 million category were particularly plentiful in 2007, with 426 reported sales.

“Industry-wide, we tracked 736 transactions last year, with the average hotel sold having 196 rooms and generating an average price per key of a record $117,000, up from $110,000 a room in 2006 and up from the decade low of $52,000 in 2000,” said Brandt Niehaus, (top right photo) CHB, HBI president and president of Louisville-based Huff, Niehaus & Associates.

“The trend toward higher pricing reflected the operating strength of the industry in 2007, which produced a 5.7 percent improvement in RevPAR, according to Smith Travel Research.”

Niehaus noted that HBI also posted a record year, with dollar volume up 20 percent, led by a 300 percent increase in upscale hotel sales. Typical time on market for an HBI hotel was approximately six months.

“With the credit markets in turmoil, we anticipate that loan closings will lengthen the sales process in 2008 as lenders require more documentation. Borrowing will be more difficult, with higher spreads and more equity required, but overall interest rates should remain historically favorable,” he said.

HBI TransActions Data Services tracks thousands of sources to uncover hotel real estate sales. “Overall cap rate for hotel sales in 2007 was essentially flat at 9.21 percent, compared to 9.19 percent in the prior year. Economy hotel cap rate was 10.97 percent, up from 2006’s 10.06 percent. Mid-market hotels enjoyed a 9.19 percent cap rate.

“We believe cap rates will move upwards across all segments this year,” Niehaus pointed out. “We believe there also will be a shift away from cap rate calculations based on pro-forma income to more conservative historical data as industry growth slows, especially during the first half of the year.”

Upscale hotels accounted for nearly half of the industry’s 2007 transactions with 356 hotels trading hands, up 25 percent from the prior year. Price per room averaged $133,000, while upper upscale properties averaged $186,000 per key.

Mid-market hotels without food and beverage remained the most sought-after property type. However, lack of available inventory for sale led to a decrease from 280 to 222 hotels. Prices, however, rose 22 percent to $72,000 per key, with Comfort Inn, Hampton Inn and Holiday Inn Express being the most popular brands.

Economy hotel sales rose 39 percent to 135 properties in 2007, led by Days Inn, Super 8 Motels, Motel 6 and Microtel. Luxury hotel sales declined but average price per room rose from $443,000 to $479,000.

In terms of location, resort hotels commanded the highest price per room in 2007 at $222,000, but suburban hotels were the most popular locations, accounting for 41 percent of all hotel sales. Airport location sales increased with average price per room improving to $107,000 per room.

Roadside property sales held steady at 130 transactions at an average price of $45,000 per room. HBI brokered 57 percent of all highway hotels in 2007.

“Despite disruptions in the capital markets and talk of recession, we anticipate 2008 will be another very active year for hotel real estate,” Niehaus said. “Supply growth remains constrained and the economy is expected to pick up in the second half or early next year, which will have a positive impact on hotel operations.

"Sellers who don’t want to wait for the cycle to move upward or to further invest in their properties will still be able to obtain attractive prices and the forecasted rebound offers upside for buyers, a win-win situation. Over most of the year, buyers will likely have a slight edge, but pricing will remain strong.”

Niehaus noted that foreign investors are showing substantial interest in U.S. hotels. “Given the value of the euro to the dollar, U.S. real estate is very attractively priced,” he said. “Concurrently, there is a trend for U.S. companies to expand into other parts of the world, with India and China attracting a substantial amount of interest."

Contacts:

Glenda Webb
Hotel Brokers International
(816) 505-4315

Melanie Boyer
Account Executive
Daly Gray Public Relations
(703) 435-6293

Hotel Brokers International Presents Leadership Award to Ron McCord

KANSAS CITY, MO—Hotel Brokers International (HBI), the nation’s largest brokerage organization with more than 30 offices coast to coast, today announced that Wisconsin-based broker Ron McCord, (right top photo)CHB, CHA, has received HBI’s top leadership honor, the Noah L. Canfield Distinguished Service Award.

First presented in 1994, the award recognizes HBI member brokers or associates who have demonstrated distinctive leadership within the organization and the hospitality industry at large.

“Ron conducts himself with integrity and professionalism and has always displayed extraordinary dedication to this organization,” said H. Brandt Niehaus, (left top photo) CHB, CHA, CCIM, HBI board president, and president, Huff Niehaus & Associates, Inc.

“He has served nine of his 13 years with HBI on the board of directors, was the organization’s president for two consecutive years in 2003-04, and constantly volunteers his time for various committees. Ron is a skilled broker with an insightful understanding of our industry, but what sets him apart is his dedication—his commitment adds immeasurable value to this organization.”

Niehaus noted that in HBI’s 50 year history, McCord is only the second member to be elected to two consecutive terms.

Ron McCord is president of Milmark Hotel/Motel Investments, LLC and has more than 35 years of experience in hotel real estate sales. He was recognized by HBI in 2002 as the regional broker of the year and was a founding member of the Council of Inns & Suites of the American Hotel and Lodging Association. He also has served as a board member with AH&LA for eight years, in addition to serving as president of the Wisconsin Innkeepers Association.

Hotel Brokers International, with more than 100 hotel brokerage specialists, is the world’s leading hotel sales organization. The organization annually accounts for the greatest market share of mid-market transactions in the United States. HBI also hosts the Hotel Investor’s Marketplace, sponsors the Certified Hotel Broker program and publishes TransActions Recap, the leading source of hotel real estate sales data.

HBI currently has more than 150 properties listed for sale in its proprietary database and access to more than 10,000 hotel investors and owners. In addition to broker services, HBI offers affiliate membership to professionals in allied fields, including franchising, lending, appraisals and investment services.

For more information about HBI’s hotel listings or to become a broker or affiliate member, HBI may be reached at (816) 505-4315 or via the Internet at www.hbihotels.com.


CONTACTS:

Glenda Webb
Hotel Brokers International
(816) 505-4315

Melanie Boyer
Account Executive
Daly Gray Public Relations
(703) 435-6293