HFF closes $57.5M sale of former Seville Beach Hotel in Miami Beach

MIAMI, FL – The Miami office of HFF (Holliday Fenoglio Fowler, L.P.) has closed the sale of the former Seville Beach Hotel (top left photo)  in Miami Beach, Florida.

HFF executive managing director Manny de Zárraga (bottom left  photo), senior managing directors Dan Carlo (top right photo) and Daniel Peek (top left photo) , and director Jaret Turkell  represented the 2901 Beach Ventures, LLLP ownership group, on an exclusive basis.

The venture is a partnership between affiliates of Fortune International and Lionstone Group. An affiliate of Marriott International purchased the site for $57.5 million in cash. Both Fortune and Lionstone have been retained by Marriott on a consulting basis for the new project.

“The sale of the Seville is among the most significant hotel sale transactions of 2010 in the southeast United States. This sale highlights the exceptional confidence held by institutional investors in the Miami Beach hospitality investment sector,” said Peek.

Located along Collins Avenue between 29th and 30th Streets in Miami Beach, the hotel and development sites encompassed nearly 4.5 acres on both the east and west sides of Collins Avenue (bottom right photo).

The property included 350 feet of frontage along the Atlantic Ocean and 100 feet of frontage along Indian Creek Drive.

The east lot is improved with the former Seville Beach Hotel, a 12-story structure that was gutted in anticipation of a redevelopment program. The site has the ability of being developed as a residential or hotel project or any combination thereof.

“Originally built in 1955, the Seville Beach Hotel was for many years a global playground for the rich and famous, and was considered one of the most prestigious hotels in Miami Beach,” said de Zárraga.

“This was a rare opportunity to acquire a historically significant, trophy asset with diverse redevelopment potential.”

“Real estate along South Beach rarely changes hands, with most of the properties considered to be generational assets,” added Carlo. “The sale of a property of the Seville’s prominence is unique.

" In addition, Miami Beach is woefully underrepresented within the major hotel brands. As a result, the Seville was highly attractive to a wide variety of investors, including a number of high-quality brands that could make their mark in Miami Beach and restore the Seville Beach Hotel to its rightful position as a leader in the South Beach lodging market.”

Contacts:

Manuel A. DeZarraga, HFF Executive Managing Director, (305) 448-1333, mdezarraga@hfflp.com
J. Daniel Carlo, HFF Senior Managing, (305) 448-1333, dcarlo@hfflp.com
Daniel C. Peek, Director HFF Senior Managing Director, (305) 448-1333, dpeek@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, kmurphy@hfflp.com

HFF closes sale of 539-unit self storage facility in Houston

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.)  has closed the sale of Safe-Keeping Self Storage, a 539-unit self storage facility in southeast Houston, Texas.

The HFF investment sales team was led by senior managing director Aaron Swerdlin (middle right photo) and managing director Doug McCarron (middle left photo) who exclusively represented the seller, Weiss Realty, LLC.

A subsidiary of WEDGE Real Estate Holdings purchased the facility for an undisclosed amount.

Safe-Keeping Self Storage is located at 900 West Nasa Parkway close to Interstate 45 in the southeast Houston suburb of Clear Lake. The property has 50,332 square feet.

In addition to the Safe-Keeping transaction, the HFF Self Storage Group has completed several recent property transactions including a 67,923-square-foot facility in Clifton, New Jersey and a 42,313-square-foot facility in Brooklyn, New York.

The group also closed the financing of a three-property portfolio in Houston, in which associate director Colby Mueck and senior managing director Aaron Swerdlin represented the borrower.

WEDGE Real Estate Holdings owns, leases and manages a diversified portfolio of real estate including office buildings, hotels, self storage facilities and parking garages.

Contacts:

Aaron A. Swerdlin, HFF Senior Managing Director, (713) 852-3500, aswerdlin@hfflp.com
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com


Chris Drew joins HFF Miami as an associate director

MIAMI, FL – HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has hired Chris Drew as an associate director in the debt and structured finance capital markets group in its Miami office.

Drew will focus on originating debt and structured finance transactions throughout the southeastern United States. He has more than six years of experience in commercial real estate and most recently worked at Cushman & Wakefield where he was an associate in the capital markets group and prior to that, an associate in the commercial brokerage group.

 Contacts:

Manuel A. De Zarraga, HFF Executive Managing Director, (305) 448-1333, mdezarraga@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,
krmurphy@hfflp.com

Southern Commercial Completes 13,800-SF New Lease in Orlando's Lee Vista Business Center

ORLANDO, FL.--  Principals Tom McFadden, SIOR and William “Bo” Bradford, CCIM, SIOR of Southern Commercial Real Estate Advisors completed a 13,800 square foot new lease at 7443 Emerald Dunes Drive, Orlando, Florida (Lee Vista Business Center, top left photo)).

McFadden and Bradford represented the Landlord, McDonald LeeVista D, LLC. The Tenant, Arbon Equipment Corporation, Inc. was represented by David Newton of Lee & Associates.

Media Contact: Celeste MacKenzie, Southern Commercial Real Estate Advisors, 321-281-8503 20 N. Orange Avenue, Suite 605,Orlando, FL 32801

cmackenzie@southerncommercialre.com

Arbor Closes $1.5M Fannie Mae DUS® Small Loan for 800 Traction Apartments in Los Angeles, CA

Uniondale, NY --Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,500,000 loan under the Fannie Mae DUS® Small Loan product line for the 19-unit complex known as 800 Traction Apartments in Los Angeles, CA.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.50 percent.

The loan was originated by Anthony Tarter (top right photo) , Director, in Arbor’s full-service Dallas, TX lending office. “We were pleased to refinance the borrower’s existing debt with a lower interest rate while generating excess proceeds,” said Tarter.

Arbor Closes $1,465,000 Fannie Mae DUS® Small Loan for 509 East 12th Street in New York, NY

Uniondale, NY (July 20, 2010) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,465,000 loan under the Fannie Mae DUS® Small Loan product line for the 12-unit complex known as 509 East 12th Street in New York, NY.

The 15-year loan amortizes on a 15-year schedule and carries a note rate of 5.88 percent.

The loan was originated by Brian Scharf, (lower left photo)  Director, in Arbor’s full-service Uniondale, NY lending office. “The borrowers are the original property developers and were very passionate about this deal,” said Scharf. “Additionally, the location and hands-on ownership made it a great refinance opportunity for Arbor as we continue to grow our small balance program.”

Contact: Ingrid Principe, P: 516.506.4298, F: 516.542.2555, http://www.arbor.com/, Follow us on Twitter @ arbor1

Crystal City Apartment High Rise in Arlington, VA Sold to MRP Realty/Angelo, Gordon & Co. for $33.5M

WASHINGTON, D.C. (July 19, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that its Multi Housing group represented a joint venture of MRP Realty and Angelo, Gordon & Co. in the purchase of Hampton Apartments (top photo), a 135-unit high rise apartment complex in the Crystal City area of Arlington, Va., from Commercial Management Company for $33.5 million, or $248,148 per unit, in an off-market transaction.

Christopher Doerr, (top right photo)  vice president, represented the buyer in the purchase of the building, located at 1425 S. Eads St.

“Washington, D.C., has one of the strongest multifamily markets in the nation,” said Doerr. “The strength of the market, combined with the value-add nature of the asset, creates a tremendous opportunity for the buyers to renovate the building into a Class A asset in one of the top D.C. submarkets.

"Also, the fact that it was an off-market transaction was very beneficial for MRP and Angelo, Gordon & Co.”

Built in 1984, Hampton Apartments is a 17-story multifamily property featuring terraces, reserved underground parking, fitness facilities, rooftop sun deck and party room, and in-building amenities, including a convenience store, dry cleaner and bank.

The property is minutes from the Pentagon (bottom right photo) , the Crystal City metro station and Reagan International Airport, and is just across the Potomac River from the National Mall and Capitol Hill.


Christopher L. Becker Joins Grubb & Ellis as Executive Vice President, Director, Investment Services

ATLANTA, GA (July 19, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Christopher L. Becker has joined the company as executive vice president, director, Investment Services, and local leader of the company’s Financial Services Asset Management practice.

In his new role, Becker will be responsible for marketing and account management of the company’s Financial Services Asset Management group, which offers strategic counsel and a full range of services to financial institutions and special servicers looking to create value through their real estate owned portfolios.

 Additionally, he will have oversight of Atlanta’s team of investment brokerage professionals.

“Chris brings tremendous experience on the ownership side of the real estate business, and his knowledge of the capital markets arena greatly enhances our services both for investors and financial institutions,” said Brett Hunsaker (lower left photo), executive vice president and managing director of Grubb & Ellis’ Atlanta office.

Contact: Erin Mays, Phone: 312.698.6735, Email: erin.mays@grubb-ellis.com

Crossman & Co. Lands Planet Fitness at Orlando Fashion Square; negotiates 10-Year lease for 18,118 SF

ORLANDO, Fla. --- Crossman & Company, one of the largest third-party retail leasing and management firms in the Southeast which represents Orlando Fashion Square (top left photo) , recently negotiated a new 10-year lease for 18,118 square feet at the landmark shopping mall located on E. Colonial Drive near downtown Orlando.

John Crossman CCIM, president of Crossman & Company, said leasing agent Whitaker Leonhardt (middle right photo)  negotiated the transaction, on behalf of mall owner Pennsylvania Real Estate Investment Trust (PREIT), with Sunshine Fitness Centers, Inc. d/b/a Planet Fitness, the fast-growing franchise of health and fitness centers.

Crossman said the space Planet Fitness leased is the equivalent of five units at Orlando Fashion Square and renovations are now underway on the firm’s fifteenth Florida location, which is expected to open in mid-December.

Planet Fitness boasts more than 300 locations nationwide and has the second largest fitness club membership in the country.

“Planet Fitness is a huge draw and we are delighted they are opening a state-of-the-art facility at Orlando Fashion Square,” Crossman said. “We have been working on repositioning Orlando Fashion Square as a new kind of retail experience for the community and Planet Fitness plays well into our plans,” Crossman said.

David Hochstadt (middle left photo) with CFL Commercial at Prudential Florida represented Planet Fitness.

“We’re sure the partnership between Planet Fitness and Orlando Fashion Square will be a very welcomed addition to the community,” Crossman added.

For more information,  please contact:
John Crossman, CCIM, President, Crossman & Company, 407-581-6218, jcrossman@crossmanco.com
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142, lvershelco@aol.com.

Marcus & Millichap Sells 4,666-SF Office Building in Tampa, FL

TAMPA, FL, July 16, 2010 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of this South Tampa Office Building (top left photo), a 4,666-square foot office property located in Tampa, FL, according to Bryn D. Merrey, Regional Manager of the firm’s Tampa office.

 The asset commanded a sales price of $540,000.

Francesco P. Carriera (bottom right photo), senior associate and Michael J. Jaworski, (bottom left photo)  investment specialist in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the Florida-based seller.

The buyer, a limited liability company also based out of Florida, was represented by Mark Paris of Re/Max.

South Tampa Office Building is located at 3301 West Gandy Boulevard. The property was originally a two-story residence with 10 rooms.

The previous tenant had invested in high quality build-out throughout the entire asset, which included hardwood flooring, tile, new carpeting, new bathrooms and elegant lighting fixtures. Natural light was a key attribute of this window-laden building.

“The property had multiple offers from both investors and owner/users and it closed within 60 days from contract,” says Jaworski.

Press Contact: Bryn D. Merrey, Regional Manager, Tampa, (813) 387-4700

Grubb & Ellis Commercial Florida Negotiates New Office Lease agreement at The Pan Am Building in Tampa, FL

TAMPA - Grubb & Ellis Commercial Florida, associated with 130 offices worldwide, recently completed a new office lease agreement for suite 100 with 3,863 square feet of office space in The Pan Am Building (top left photo)  on Pan Am Circle Rd. in Tampa.

Richard Andretta (middle right photo) , SIOR, vice president in the firm’s Office Group and associate Rob Turner (bottom left photo)  negotiated the agreement on behalf of the tenant Youth Villages based in Bartlett, Tenn.

The landlord is Pan Am Building, LLC of Tampa.

Grubb & Ellis Commercial Florida is an affiliated commercial real estate services firm specializing in the leasing and sale of office, industrial, retail, land and investment properties.

 Currently Grubb & Ellis Commercial Florida has 40 brokers divided among its Tampa, Orlando and Melbourne offices which serve the entire mid-Florida marketplace.

Contact:  Larry Vershel, lvershelco@aol.com

US Industrial REIT III Acquires GE Distribution Center In Florida

SAN ANTONIO, TX /PRNewswire/ -- US Industrial REIT III announces the recent purchase of the General Electric Distribution Center located at 600 Whittaker Road in Jacksonville, Florida.

 The facility was purchased from I&G UOC Jacksonville, LLC. Frank Fallon, Chris Riley and Nathan Rogers of the CBRE Atlanta Office represented the seller in the transaction. The purchase price was not disclosed.

The 469,830-square-foot, Class A Bulk Distribution Facility was built in 1996 for General Electric Company, who remains the sole tenant.

The GE Distribution Center occupies approximately 24 acres and includes 4,000 square feet of office space along with land for a future building expansion.

The building is rail served by CSX. T-5 lighting and new roofing, updated in 2007, complement its modern design and functionality.

General Electric Company distributes all of its major appliance lines from the Jacksonville facility to South Georgia, the Carolinas, Florida and the Caribbean.

This Jacksonville address serves as a strategic location within the well-known 1,500-acre Imeson International Industrial Park (bottom left photo) , former site of the City of Jacksonville's airport, and provides access to multi-modal transportation, including the Jacksonville International Airport, the Port of Jacksonville, and CSX Railways.

US Industrial REIT III is owned by affiliates of USAA Real Estate Company and other institutional investors and invests in high quality bulk distribution properties located in major markets throughout the United States. The REIT continues to actively pursue acquisitions in single and multi-tenant industrial distribution buildings of 250,000 square feet and larger in high growth target markets.

"We are extremely pleased to acquire this premier asset occupied by GE, a Fortune 500 leader and mainstay within the industries it competes. The purchase of this asset parallels our mission to accumulate a large portfolio of high quality assets," says USAA Real Estate Company Chairman and CEO Pat Duncan (middle left photo).

"Few markets connect to three rail carriers plus a seaport, making this facility's location exceptional and a key contributor to the success of USIR III."

General Electric Company remains a leader in technology, as well as financial services through GE Capital. GE's Consumer & Industrial arm manufactures major appliances, air conditioners and water systems products, as well as electrical and lighting products in North America and through various private GE and private label brands.

For more information, contact:
Sharon Ballenger,  +1-210-641-8410, for USAA Real Estate
Company, Web Site: http://www.usaarealco.com/

Wilson Commercial Real Estate Completes 31,500-SF Lease to TJ Maxx at Fallbrook Center in West Hills, CA

 WEST HILLS, CA– JULY 16, 2010 – Wilson Commercial Real Estate, one of Southern California’s leading retail brokerage firms.  has completed a 31,500-square-foot 10 year lease with TJ Maxx at Fallbrook Center  (top left photo) in a space formerly occupied by Linens ‘N Things, located at 6609 Fallbrook Avenue in West Hills, Calif.

“TJ Maxx will be a great addition to the tenant mix at Fallbrook Center,” said Scott Burns (bottom  right photo)  of Wilson Commercial.

Burns represented the building owner, General Growth Properties in the transaction. Pat Gilhooly of The Clover Company represented the tenant.

Fallbrook Center is the San Fernando Valley’s strongest and most diverse power center.

It is located at the corner of Victory and Fallbrook with easy access from the Ventura (101) Freeway.

Encompassing 1.2 million square feet, the center is 97 percent leased and is anchored by Target, Wal-Mart, Home Depot, Kohl’s, and Burlington Coat Factory, Ross Dress for Less, Trader Joes, DSW, 24 Hour Fitness and PETCO.

Contact: David Ebeling, Ebeling Communications, (949) 278-7851 david@ebelingcomm.com

Bermuda Cay Condos in Boynton Beach, FL Sold for $8.2M

MIAMI, FL--CB Richard Ellis is pleased to announce the sale of Bermuda Cay (top left photo), a 106 out of 160 unit fractured condominium community located in Boynton Beach, Florida.

Dizengoff Trading acquired this community for $8,200,000 or $77,358 per unit or $72 per sq. ft.

Contact: Robert Given, robert.given@cbre.com

Dizengoff-Trading Group Acquires 106 Condo Units at Bermuda Cay in Boynton Beach, FL

BOCA RATON, FL (July 16, 2010)–Dizengoff-Trading Group announced the bulk purchase of 106 condominium units at Bermuda Cay, (top left photo)  a multi-family property converted from apartment units to condos five years ago.

 The complex is located at East Woolbright Road and South Federal Highway on the Intracoastal Waterway in Boynton Beach, Florida.

Dizengoff paid $78 a square foot, which amounts to a 78 percent discount to the average selling price during the height of the real estate boom.

With the purchase, Dizengoff controls 66 percent of the 160 total units, most of which are already leased.

Bermuda Cay was built in 1975 and totally refurbished in 2005 just before the conversion. The property is located in a desirable residential area, which is reflected by the high occupancy rate of the community.

The community has several amenities including a waterfront promenade and swimming pool, poolside clubhouse and lounge, fitness center, lush tropical gardens with fountains and pergolas, a barbeque area, and gated entry.

Units feature well-designed one and two-bedroom floor plans, which average 992 square feet in size, and include new impact resistant hurricane-rated windows, upgraded kitchen and bathroom in select units, walk-in closets, and a private balcony with spectacular Intracoastal and courtyard views.

Bermuda Cay is walking distance to the beach and neighborhood shopping centers and is within minutes of the Boynton Beach Mall (lower right photo), Boynton Town Center, and the Renaissance Commons – a mixed-use development which includes over 7 million square feet of office, retail, and high-end residential space.

Dizengoff- Trading Company (1952) LTD. specializes in the development and management of residential and commercial properties.

The company has been ranked amongst the top 50 service and trade companies by Dun and Bradstreet in Israel, reflecting its considerable financial strength and wide-ranging capabilities.

The company has offices in Israel, the United States, the United Kingdom and the Czech Republic. For more information, visit the company web site at www.dizengoff-trading.com.

Media Contact: Todd Templin and/or Jennifer Clarin, Boardroom Communications
(954) 370-8999/ Todd Cell: 954-290-0810

Construction Underway on West M Apartments in Lake Charles, LA

Atlanta, GA/Lake Charles, LA (July 15, 2010) – Construction is now underway on West M Apartments (rendering top left) – a new luxury multifamily community in Lake Charles, Louisiana. The $25 million first phase of the 23-acre gated community includes 222 one-, two- and three-bedroom apartments.

Reservations for the new residences, which will be completed early next year, are now being accepted.

The product is a mid-density, center corridor type design surrounding a resort-style amenities package including the residents’ club and infinity-edge swimming pool with fountains, cabanas and an outdoor kitchen equipped for social functions.

 Other upscale amenities of the controlled access community include a state-of-the-art fitness center, java café, theater and pet park all set in a heavily landscaped setting more typically found in a high-end resort.

 Interiors feature modern kitchens with granite countertops, high-end wood cabinetry and top-of-the-line appliances.

 Each apartment has its own washer and dryer as well as garden tub, contemporary lighting and upgraded flooring. Most apartments will have built-in desks as well as storage closets located on their patios or hardwood balconies.

Some loft-style floorplans are available. Residents can also rent convenient enclosed garages. The architect for the project is Dallas-based JH+P Architects. Interiors were designed by Faulkner Design Group, also of Dallas.

“West M is going to be the most appealing apartment community in Lake Charles,” said Cortland Partners president Steven DeFrancis.

“While it is difficult to get any deal financed in today’s market, we were able to take advantage of the excess slack in the construction market and the particular strength of the south Louisiana market to bring an unprecedented level of product and design to the area.”

“Getting a project of this scope off the ground in this very challenging financing environment took tenacity, but we are confident we will bring a new experience to Lake Charles,” he added. “The first residents should be able to move in early next year, and I am sure they will be as excited about moving here as I am about getting construction started.”

Construction first began in late May. The address is 1330 West McNeese Street in Lake Charles.

The community near I-210 is easily accessible to McNeese State University (lower left rendering) .

 Future phases will bring the total number of apartments to 330. M&T Capital Realty Corp., which financed the project, received a HUD 221d4 loan guarantee for the $21.5 million construction and permanent loan.

For more information, send an e-mail to info@cortlandpartners.com or visit http://www.westmapartments.com/

Media Contact: Terri Thornton 404-932-4347 Terri@TerriThornton.com

morrison commercial real estate completes three Central Florida office lease transactions totaling 12,534± SF

ORLANDO, FL (July 15, 2010): Greg Morrison, (top right photo)  CCIM, SIOR, Principal of Morrison Commercial Real Estate, announced the completion of three office lease transactions totaling 12,534± square feet.

Christi Davis (top left photo)  of Morrison Commercial Real Estate represented the Landlord at 1035 Primera Boulevard, Lake Mary in leasing a 4,778± square foot space to Florida Office Group on June 21st . Brian Ball with Sansone Group represented the Tenant in this transaction.

Damien Madsen (lower right photo) of Morrison Commercial Real Estate and Steve Farrar of Newburger Andes represented Prommis Solutions in securing a direct lease and a sublease for a total of 7,756± square feet at CNL Center I in Orlando on June 28 for a little over 3 years.

 Alex Rosario with CNL Commercial Real Estate represented the Landlord in this transaction and John Gay of Cresa Partners represented the Sub-Landlord.

Contact: Buffy Gillette, Phone: 407.219.3500, Email: bgillette@morrisoncre.com

National Retail Properties, Inc. Increases Common Dividend

ORLANDO, FL., July 15 /PRNewswire-FirstCall/ -- The Board of Directors of National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, declared a quarterly dividend of 38 cents per share payable August 16, 2010 to common shareholders of record on July 30, 2010.

The dividend represents a 1.3% increase in the quarterly dividend rate.

National Retail Properties has paid increased annual dividends per share for 20 consecutive years and is one of only 114 publicly traded companies in America that have increased annual dividends paid to shareholders for 20 or more consecutive years.

National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of March 31, 2010, the company owned 1,014 Investment Properties in 43 states with a gross leasable area of approximately 11.4 million square feet. For more information on the company, visit www.nnnreit.com.

Contact: Kevin B. Habicht, Chief Financial Officer of National Retail Properties, Inc., +1-407-265-7348

Meetings Stigma Impacts Conference Centers

 
PHILADELPHIA,  PA– All segments of the lodging industry struggled in 2009. However, the combined impact of the economic recession and the demonizing of corporate meetings, resulted in an even more dramatic fall off in performance for North American conference centers.

According to the recently released Trends® in the Conference Center Industry report prepared by Colliers PKF Consulting USA, the average center in the survey sample reported a decline in net operating income of 43.5 percent in 2009. This compares to an average hotel income decline of 35.4 percent for the nation as a whole.

“During economic recessions it is not uncommon to see associations and corporations cut their meetings budget,” said Dave Arnold,  (top right photo) CEO East, Colliers PKF Consulting USA.

  “However, never before have we seen the stigma attached to organizations that attempted to hold valuable training and planning conferences. With the average conference center occupancy level falling below 50 percent, the negative impact is obvious.”

Since the majority of conference center guests stay as part of a package plan, total conference center revenue is typically measured on a dollar-per-occupied-room basis (POR).

 In 2009, the centers in the Trends® survey sample reported a 9.2 percent decline in total revenue POR.

Executive and resort conference centers, the two property types most dependent on business organizations as the source for their meetings, suffered the greatest declines in total revenue POR.

(Arizona Biltmore middle right photo)

On the other hand, total revenue POR at College/University centers declined just 2.4 percent. This shows the relative stability of educational institutions during the economic recession.

“In 2008, conference demand accounted for 72.2 percent of the rooms occupied at the centers in our survey. In 2009, this ratio dropped to 63.9 percent, meaning that conference centers relied on transient business to fill over one-third of its rooms last year,” Arnold observed.

 To combat the deterioration in conference demand, centers turned to local organizations for business.

(Hotel Celebration, Celebration, FL, middle left photo)

Local based conference attendees increased 2.4 percent in 2009. Conversely, guests attending conferences of a national scope declined 1.9 percent.

The greater dependence on locally based business contributed to the decline in rooms occupied.

Like all hotel managers, conference center operators have historically responded to declines in revenue by cutting costs. Such was the case in 2009.

On average, undistributed operating expenses declined 10.4 percent during the year. This is comparable to the cost savings achieved at comparable transient hotels.

(Hotel Ramada Plaza, Kuwait City, lower right photo)

“Because of the high level of service offered by conference centers, labor related expenditures are the greatest operating expense. Therefore, it is not surprising that salaries and benefits were cut in 2009 in an effort to control costs,” Arnold said.

On average, base salaries were reduced by 7.3 percent in 2009. Given the fall off in conference center revenues and profits it is not surprising that incentive pay declined by an average of 65.1 percent as well.

Despite management’s best efforts to control costs, the average center in the Trends® survey reported a 43.5 percent decline in the bottom-line in 2009. Resort centers suffered the most (-55.1%), while corporate centers’ profits fell less precipitously (-33.5%).

(Days Inn Maui Oceanfront lower left photo)

Consistent with historical recovery patterns, conference center managers expect occupancy levels to rise, but room and package rates to lag.

On average, the managers in the survey budgeted for a 4.8 percent increase in occupancy in 2010. On the other hand, their expectations for CMP rate movement are a minimal increase of just 0.5 percent.

“It is still a buyers market in the short term. This is good news for meeting planners, but still presents challenges for property owners and operators,” Arnold concludes.

The 2010 Trends® in the Conference Center Industry report provides conference center statistics and financial profiles of the industry. In addition, it presents information on facilities offered, package pricing and occupancy statistics, source of meetings, marketing tactics, and human resources.

 (Fairmont Dubai hotel,  lower right photo)

 Data is presented for Executive, Corporate, Resort, and College/University centers and is a standard reference resource for conference center owner and managers, as well as meeting and convention planners.

Copies of the 2010 Trends® in the Conference Center Industry report are available for purchase and immediate download at www.pkfc.com/store, or by calling 866-842-8754.


For further information,  please contact:
Dave Arnold, CEO East Colliers – PKF Consulting USA
Tel: 215 563 5300, ext 32 Email: dave.arnold@pkfc.com, http://www.pkfc.com/

Chris Daly, Daly Gray Public Relations, Tel: 703 435 6293, Email: chris@dalygray.com
http://www.dalygray.com/