MBA Hotel Brokers Blog

 

 

Time Saving Technology

Do Less and Accomplish More!  Enjoy work and life!

October 19, 2017

 

https://hotelinvestorapps.comEveryone’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 . . . 

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"The Beat Goes On"

Steady Growth and Changing Market Dynamics for the Hotel Industry

July 27, 2017

 

The Beat Goes On, and the Tone is PositiveIn 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. . . CONTINUE READING

 

 

Got An Exit?

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 . . . CONTINUE

 

 

Book Review: Enlightened Real Estate

Maybe hotels can also create 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. 

 

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Profile of New 'Mobile App for Hotel Staff'

Brillata is an innovative solution for hotel supervisors, housekeeping and maintenance staff.

December 16, 2016

 

New app for housekeepingHoteliers 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.

 

CONTINUE READING

 

4 Myths on Selling a Hotel

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. The negotiation process is not a set compromise between two values. . . KEEP READING

 

New Supply Growth Impacts Projections

September 12, 2016

 

Hotel Data Conference

The Hotel Data Conference was held last week in Nashville TN, hosted by STR (formerly Smith Travel Research) and Hotel News Now.  As reported by HNN Newswire, STR and Tourism Economics forecast a slowdown of growth for the lodging industry. KEEP READING

 

3 Reports Every Hotel Owner Should Utilize

August 26, 2016

 

STAR Report Monthly IndexOccasionally a hotel owner will say to me that they rarely even look at the STR, (STR, ie, Smith Travel Research) report which shows ADR, Occupancy, and RevPAR data for the last week to 4 weeks, and the monthly report which goes back for 12 months at least.  Also useful are the franchise ranking report, and the Medallia report of guest satisfaction ranking. 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. CONTINUE READING

 

P&Ls: Put Garbage In, Get Garbage Out

August 12, 2016

 

Departmental Expense Chart

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. First of all, it should go without saying that only the revenue that is shown on the statements is used in any valuation of the hotel. The old adage, “garbage in, garbage out” applies to a P&L statement. As a broker, to help you get the most return on investment, we want the opposite. Put in quality data, to get quality intelligence out. CONTNUE READING

 

Webinar - What You Are Missing From Your Hotel Accounting

August 2, 2016

Presented by MBA Hotel Brokers and Hotel Investor Apps

Learn More about Hotel Investor Apps, and their accounting solution for hotels, Hotel ProfitGuide, at http://hotelinvestorapps.com/

 

 

5 More Money Saving Accounting Features For Hotels

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: KEEP READING

 

 

5 Money Saving Measures Available with a Hotel Accounting Software Upgrade

July 15, 2016

 

In my 20 years of experience in the hospitality industry, primarily as a hotel real estate broker, I have seen thousands of hotel profit and loss statements. Over these years many successful hotel owners have grown their portfolio from one or two hotels, to 10, 20, or 100 hotels. One challenge of this growth of a hotel portfolio is that certain systems and ways of operating one or two hotels become dysfunctional or obsolete. 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. . . Continue

 

When 'Git It Done' Applies to a Transfer PIP

July 1, 2016

 

As a hotel broker, one point of contention I see in many deals is the arrival of the franchise property improvement plan, a.k.a. the PIP. Hotel franchise companies often take advantage of the license transfer to require more extensive renovations than is required of the seller to continue with the flag. Franchise companies know that hotel buyers can obtain financing to cover larger renovations included in the acquisition loan. In fact, for the buyer, financing the PIP in the new mortgage is indeed the best way to finance the cost of a PIP. . . Continue

 

Get Ready! The SBA 504 Refinance is Back!

June 17, 2016

 

SBA Administration

The SBA 504 Refinance loan program offers up to 90% loan to value, based on the appraised value, of the real estate property.  The effective interest rate on the SBA’s portion of the loan is low, as low as 4.22% in June, and is always fixed for 20 years.  It is also possible to get cash out for operating expenses with up to 75% loan to value. . . Continue

 

Direct Booking Increases Your Bottom Line

June 10, 2016

 

Hotel values are driven by room revenue and net income.  So whether you are considering selling or refinancing now or later, the more revenue your hotel generates, gross and net, the greater it's value and the greater your exit profit.  Last month Choice Hotels became the latest Franchisor to join the so called ‘Direct Booking Wars’. . . Continue

 

Matching Your Skillset, Risk Tolerance, and Capital to a Hotel Investment

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, select or full), 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. . . Continue

 

Timing a Hotel Sale to the Larger 'Season'

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.  By some accounts, the hotel industry seems to be moving into the ‘Autumn’ season, but for the mid-sized single-asset sale, the data shows we are still in peak ‘Summer’ season. . . Continue

 

Hotel CMBS vs. Bank and SBA Lending

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.  We agree that CMBS lending is getting tighter and less attractive, and will have greater volatility this year.  MBA Hotel Brokers and our Capital Markets advisory division, MBA Capital Funding, have seen the widening spreads and increased volatility in the CMBS lending market in 2016, resulting in higher interest rates for borrowers. . . Continue

 

Webinar: CMBS and Hotels - What You Need to Know to Avoid Excess Costs and Problems

Presented January 20, 2016 by MBA Hotel Brokers and MBA Capital Funding with 1st Service Solutions.

 

 

MBA in the News

Hotel Business- It's a Buyers and Sellers Market

Hotel Management- Focused Bidding to Distinguish 2014

Hotel Management- Smooth Sailing Right Now June 2013

 

MBA Capital Funding Inc. is a commercial mortgage and financing services firm, specializing in arranging debt and debt structures.

"MBA Hotel Brokers and John Downes showed perseverance and diligence in quickly locating a qualified buyer for our hotel and John constantly communicated with both parties to ensure the transaction closed. We look forward to our next deal with MBA in the near future." - Seller for Comfort Inn, Pennsylvania