With 20+ years of experience exclusively in hospitality real estate brokerage, Charlie Fritsch is uniquely suited to write this blog for hotel owners, focused on educations topics and current events affecting hotel operations and transactions.
Do Less and Accomplish More! Enjoy work and life!
October 19, 2017
Everyone’s time is precious. We believe that the best technology lets us do less and accomplish more, increasing the efficiency and effectiveness of our work time, giving us time to enjoy this life in whatever way our spirit leads us. Hotel Investor Apps Accounting Solution has tons of time savings features, and it also has the latest technology advantages and disruptive pricing!
Steady Growth and Changing Market Dynamics for the Hotel Industry
In reviewing the hotel market data, I am reminded of the 1967 hit Sonny & Cher song, “The Beat Goes On”. I think the song's message is basically, even as everything is changing, human nature remains the same. For the hotel industry, as much as things keep changing, the underlying beat goes on, and the tone is in a positive direction.
Its summertime now in the hotel industry, and indeed the beat goes on. The transaction market is HOT! Plus the market impact of RevPAR growth, interest rates, and cap rates.
2017 Cap Rates, Interest Rates and New Supply and Thier Impacts
March 7, 2017
Some may be casting doubt on the hotel transactions market for 2017, but there are many reasons to be optimistic. For now, conditions remain favorable for sellers.
Hotel sales volume may have been down in 2016, but hotel sales were actually strong in 2016 with $23b . . .
Maybe hotels can also create a greater harmony and a little taste of enlightenment in the weary world of a modern traveler.
February 4, 2017
In “ENLIGHTENED REAL ESTATE: Transforming ourselves and the world around us”, by Barry B. Scherr, with a special section by noted Vastu architect, Jonathan Lipman, AIA, the author makes the case that despite acceleration of advances in science and technology; the realization of greater fulfillment in life, achieving a more nurturing lifestyle free from fear and anxiety, eludes almost all of the people in this world we live in.
Brillata is an innovative solution for hotel supervisors, housekeeping and maintenance staff.
December 16, 2016
Hoteliers are embracing technologies in all aspects of hotel operations. However, most hoteliers must prioritize which technologies to adopt to maximize efficiency within their budget. In my view, new hotel software should pay for itself; either in reduced expenses and increased top line or bottom line revenues.
A new software app which reduces expenses by creating efficiencies in housekeeping and maintenance, while being easy to use and affordable is Brilatta.
October 17, 2016
If you own a hotel(s), and plan on selling in your lifetime, you will want to know these pricing strategies.
Myth # 1: The higher I price my hotel, the more money I will get for it
Unlike what some hotel owners may believe, the advertised list price is not independent of revenue and other hotel valuation factors, and it is NOT the case that if you ask more, you will end up with more. Asking too high of a price relative to gross and net operating incomes will simply mean hotel buyers will ignore the offering.
September 12, 2016
The Hotel Data Conference was held last week in Nashville TN, hosted by STR and Hotel News Now. As reported by HNN Newswire, STR and Tourism Economics forecast a slowdown of growth for the lodging industry.
August 26, 2016
Occasionally a hotel owner will say to me that they rarely even look at the STAR report. Also useful are the franchise ranking report,and the Medallia report. Not reviewing this data regularly is a missed opportunity to study your market performance and your hotel's performance, regardless of the size of your hotel, or the size of your market. Doing this can yield actionable knowledge that can help you improve your hotel's performance and maximize revenue.
August 12, 2016
The quality of the profit and loss statements, and quality of the record keeping in general are an asset whenever you decide to exit a hotel investment.
July 29, 2016
Accounting should be able to provide a hotel owner reliable insight into the operations and financial well-being of their business. Insightful reports must be available without delay all the time to all key personnel without the owner or others waiting for their accountant to get around to creating the reports. To operate your hospitality business efficiently, here are some more features available in a good accounting program:
July 15, 2016
Almost all hotels have had their front office software updated in the last 5 years, so why would you still operate with the same old PC based or even web based accounting programs that have not kept up with the fast paced advances of the latest technology. . .
July 1, 2016
As a hotel broker, one point of contention in many deals is the arrival of the franchise property improvement plan, a.k.a. the PIP. Hotel franchise companies sometimes take advantage of the license transfer to require more extensive renovations. Franchise companies know that hotel buyers can obtain financing to cover larger renovations included in the acquisition loan. . .
June 17, 2016
On May 26th the Small Business Administration (SBA) made the 504 Refinance Program permanent. This is great news for hoteliers! The SBA 504 Refinance loan program offers up to 90% loan to value, based on the appraised value, of the real estate property. . .
June 10, 2016
Last month Choice Hotels became the latest Franchisor to join the so called ‘Direct Booking Wars’. As a franchise hotel owner, these Franchise wide campaigns are a win-win for you and your franchisor. The cost of Online Travel Agencies has always been the burden of the hotel owner. . .
May 13, 2016
You're looking for a hotel acquisition. You've identified some target criteria: States or markets of interest, type of service (limited, full, select), possible brands, price limit, number of rooms, etc. You may also have in mind target parameters such as cap rate, price per key or a room revenue multiplier that fit the product and market. . .
May 6, 2016
In many markets, summer is the peak season of the year and hotel investors like to time purchases to take advantage of this strong revenue season. Yet, it may be far more important to time a hotel transaction to the larger ‘season’, or cycle, of the hotel industry.
April 26, 2016
You may have heard recent negative forecasts for commercial financing markets, most notably Hotel Management’s April 18th cover story “Why Lending is About to Get Tighter”. The Crittenden Report of April 11 also reported on CMBS loan underwriting fluctuations and tightening for hotels, as well as some pullback later in the year by Life Company lenders. Crittenden notes that bridge and debt fund lenders will then fill the gap that a shrinking CMBS and Life Company pool of funds for hotels creates.
July 17, 2017 – MBA Hotel Brokers, Inc. announces the successful sale of the 73 unit, 4-story Holiday Inn Express in Easton Maryland.
The sale was completed through a “pocket listing” by John J. Downes, Associate Broker with MBA Hotel Brokers, Inc. Mr. Downes had a prior relationship with the seller and was able to bring a buyer to the seller via a one on one transaction. . .
July 17, 2017 – MBA Hotel Brokers, Inc. announces the sale of the Wingate by Wyndham East Louisville Kentucky. Suresh Patel, Associate Broker with MBA Hotel Brokers, represented the seller in this deal.
July 17, 2017 – MBA Hotel Brokers, Inc. announces the sale in June of the portfolio sale including the Eisenhower Hotel and Conference Center, Aspire Hotel, Allstar Events Center, and Devonshire Village Condominiums.
"Thank you Charlie for all the work you did in getting us to a sale. I appreciate the balance and guidance you provided during the negotiations. Without it, I doubt the sale would have happened" - Seller of Country Inn & Suites, New York