Hotel Financing – Guide Global http://guideglobal.com/ Fri, 01 Jul 2022 11:06:42 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://guideglobal.com/wp-content/uploads/2021/05/default1.png Hotel Financing – Guide Global http://guideglobal.com/ 32 32 China VC Investment List Q2 2022 – New Retail https://guideglobal.com/china-vc-investment-list-q2-2022-new-retail/ Fri, 01 Jul 2022 09:56:08 +0000 https://guideglobal.com/china-vc-investment-list-q2-2022-new-retail/ For new retail, we at EqualOcean have identified 20 companies to watch in Q2. The main criterion is to receive venture capital investments of more than USD 30 million on average or the equivalent value in CNY in a single round. When compiling the list, we also considered factors such as growth prospects, brand influences […]]]>

For new retail, we at EqualOcean have identified 20 companies to watch in Q2. The main criterion is to receive venture capital investments of more than USD 30 million on average or the equivalent value in CNY in a single round. When compiling the list, we also considered factors such as growth prospects, brand influences and reputation, and planned expansions.

From SMEs on the verge of making their mark in the market to well-established companies that have already raised significant funds and are always looking for new injections of capital, here is a list you won’t want to miss.

Better life

Better Life (Chinese: 步步高生活网) has pocketed CNY 2 billion (USD 300 million) in a strategic funding round from investor Xing Xiang (Chinese: 兴湘集团) and Lugu (Chinese: 麓谷发展集团) on June 15. 2003 in Hunan Province, the company is a business group with multiple businesses such as supermarkets, shopping malls, shopping complexes, logistics and transportation.

Style3D

In mid-June, Style3D (Chinese: 凌迪科技), a 3D fashion synthesis software developer, received tens of millions of dollars of strategic investment undertaken by Hillhouse Capital and CDH Investments (Chinese: 鼎晖投资). Founded in 2015, the company has provided products and services such as 3D design tools, collaborative work systems, and supply chain delivery for apparel companies for the past several years.

Look for

On May 30, Seek (Chinese: 帅克), a company which focuses on the research, development and production of pet food, completed its pre-IPO financing round of 500 million CNY (75 million USD). The investment was led by Confitop Capital and Boyu Capital, followed by Riverhead Capital, Mango Fund, Sino Pacific Capital, Linyi City Fund and other investors. Founded in 2012, Seek has established a supply chain system to provide customers with original in-trust manufacturing (OEM) services of pet food and pet snacks.

Dairy products from the sun

Sunshine Dairy (Chinese: 阳光乳业, 001318: SZ), a professional dairy enterprise which integrates research, development, production and sales of dairy products, successfully raised 669 million yuan in its IPO on the Shenzhen Stock Exchange on May 20. Jiangxi Province, the company advertises low-temperature dairy products and milk drinks as the main products. In addition, it also specializes in pasture and animal husbandry.

MZZ

MZZ (Chinese: 麻爪爪), a Chongqing-based company specializing in the production of spicy pickled products, raised nearly 100 million yuan in a Series A+ funding round from investors in late May. such as Jiawo Venture Capital, Jinding Capital and Fanqiziben. This round of funding will primarily be used for digital upgrade, supply chain building, and team building needed for cross-jurisdictional operations.

CellX

CellX, a company dedicated to redefining food production and consumption by applying advanced innovations through life and food sciences, has secured nearly CNY 100 million from Jiawo Venture Capital, Lever VC, Agronomics and Better Bite Ventures in a Series A funding round in mid-May. Founded in 2020 in Shanghai, CellX will mainly use proceeds from this cycle to expand the technology platform and promote pilot testing.

wing cafe

Wing Cafe (Chinese: 咖啡之翼), a coffee shop chain brand, received 100 million yuan in a strategic funding round from investor CCIG (Chinese: 中金资本) on June 27 . Founded in 2000, the company integrates coffee shops, coffee machines, supply chain and other diversified business areas.

starpony

STARPONY (Chinese: 星空优品), a brand that focuses on providing more creative toys for children aged 3-10 around the world, closed its Series A funding round worth dozens millions of dollars in mid-May. It was conducted by eWTP, with the participation of K2VC. The proceeds from this round of financing will mainly be used for talent recruitment, product development, brand building and other aspects.

Shine+

Shine+ (Chinese: 萱嘉生物), a maker of skincare and healthcare products, raised nearly 200 million yuan in a Series A+ funding round on June 24. This investment round was led by Orient Fuhai (Chinese: 东方富海) and Huaxilangya (Chinese: 华熙朗亚), followed by Cowin Capital (Chinese: 同创伟业), Hongtai Fund (Chinese: 洪泰基金), Lihe Hongxin (Chinese: 力合鸿鑫) and Sihai New Material (Chinese: 四海新材基金). Founded in 2017, the company is the world’s first platform that applies supramolecular chemistry technology to pan-health.

Quantum Hi-Tech Organic

The acquisition of Quantum Hi-Tech Biological (Chinese: 量子高科), by Tate & Lyle Investments for 237 million USD was finalized at the end of May. Quantum Hi-Tech Biological is an innovative company whose main activity is biomedical research and development, micro-ecological nutrition and micro-ecological medicine. The acquisition was originally announced on March 31. Based in Guangdong province, the company will then officially join Tate & Lyle, strengthening its global specialty food ingredients business.

V comma

Founded in 2021, T COMMA, a Chinese tea beverage brand offering “fresh nutrition”, raised €50 million in its pre-Series A funding round on April 19. Italian leather goods, wine and clothing brand RUWISHDA is the investor. The proceeds will be used to open 60 stores in Nanjing and hold summer events, according to a company statement.

Bananaunder

Sequoia China-backed retailer Bananaunder (Chinese: 蕉下), known for its products with built-in sunscreen technology, filed a listing prospectus on the Hong Kong Stock Exchange on April 15. CICC and Morgan Stanley are the co-sponsors. Founded in 2013, the company is expanding its product line from UV-filtering umbrellas to clothing, footwear and accessories. Previously, Bananaunder pocketed over $50 million in three funding rounds backed by Sequoia China, China Renaissance and Borchid Capital.

Xijie

Food company Xijie (Chinese: 喜姐炸串), known for its deep-fried skewers, raised 75 million yuan in its Series A+ funding round on April 25, with exclusive investment from Vision Knight Capital. Previously, it raised CNY 295 million in Series A backed by Source Code Capital and Focusstar Capital. Founded in 2019, the Nanjing-based company aims to provide healthy leisure snacks.

comicity

The acquisition of Comicity (Chinese: 动漫星城) by GDH (Chinese: 粤海投资) for CNY 700 million was completed on June 1. The company believes that this investment will create synergies in branding, tenant mix, marketing and help improve operational efficiency. . Based in Guangdong Province, the company is mainly engaged in the operation and management of the animation-themed mall “Guangzhou Animation Star City”.

Anesidorabox

In April, high-value comprehensive social platform Anesidorabox (Chinese: 安妮斯朵拉魔盒) announced the completion of a $13.5 million angel funding round led by Insight Partners, a global private equity and venture capital firm. This round of funding will primarily be used for ecosystem building, section optimization, and social research and development related to the metaverse. Launched in May, it aims to consolidate online shopping, big data, cloud computing and artificial intelligence into one.

InfoQ

InfoQ (Information Queue) completed a CNY 100 million Series B+ funding round at the end of April. The investment came from New System Creation (Chinese: 新系创), Orient Fuhai and CybernautVC. Founded in 2006 and based in Beijing, InfoQ is a community-based software development media platform.

Vienna Hotel Group

Vienna Hotel Group (Chinese: 维也纳酒店) closed a strategic investment from Jin Jiang International (Chinese: 锦江国际) on June 13. The financing amount is CNY 219 million. Founded in 2009, the company is a business hotel chain operator whose brands include Vienna Hotels, Royal Vienna Hotels, Vienna Apartments and other product lines, ranging from three-star to five-star stars.

Du Feng Xuan

Bone broth supplier Du Feng Xuan (Chinese: 独凤轩) pocketed 100 million yuan in a post-IPO funding round in May. The investment was led by the China Agricultural Reclamation Industry Development Fund and Teway Food. Half of it will be used to complete the business development fund request while the remaining CNY 50 million is for the construction of the bone broth project. Founded in 1996, the listed company focuses on the production, research and development of high calcium nutritional bone broth.

ECKL’S

Hot dog brand ECKL’S (Chinese: 爱氏热狗) raised tens of millions of CNY through an angel funding round in late April. The investment came exclusively from K2VC and will be used for product iteration, digital system upgrade, organization building and store expansion. Based in Xiamen, the company describes its style as “fast casual” and offers a range of products from burgers to drinks.

Founder

Fondatore (Chinese: 拇指衣橱), a clothing customization platform for businessmen, completed a Series B funding round worth US$170 million on June 18. It was led by Plum Ventures (Chinese: 梅花创投), followed by Merdian Capital (Chinese: 华映资本), Belle Fashion (Chinese: 百丽时尚), and Chisage (Chinese: 中哲集团). This round of investment will mainly be used to build a new lab that will help brands develop advanced fabrics.

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Luxury hotel brand JW Marriott debuts in Saudi Arabia with Riyadh Capital https://guideglobal.com/luxury-hotel-brand-jw-marriott-debuts-in-saudi-arabia-with-riyadh-capital/ Wed, 29 Jun 2022 08:16:01 +0000 https://guideglobal.com/luxury-hotel-brand-jw-marriott-debuts-in-saudi-arabia-with-riyadh-capital/ RIYADH: Saudi shares opened Wednesday’s session in the red as investors waited for a possible stabilization in oil prices. The main index, TASI, fell 0.19% to 11,648, while the parallel market, Nomu, added 1.02% to 20,565 at 10:09 a.m. KST. Abdullah Saad Mohammed Abo Moati for Bookstores Co. led the winners with a gain of […]]]>

RIYADH: Saudi shares opened Wednesday’s session in the red as investors waited for a possible stabilization in oil prices.

The main index, TASI, fell 0.19% to 11,648, while the parallel market, Nomu, added 1.02% to 20,565 at 10:09 a.m. KST.

Abdullah Saad Mohammed Abo Moati for Bookstores Co. led the winners with a gain of 3.93%, after posting a profit of SR15 million ($4 million) for its fiscal year ending March 31, 2022, a increase of 183.3%.

Tihama Advertising and Public Relations Co. led the fallers, down 2.67%.

Saudi Aramco, the biggest player in the Saudi oil market, started trading today down 0.77%.

In the financial sector, the Kingdom’s largest valued bank, Al Rajhi, fell 0.59%, while Bank Aljazira fell 0.09%.

Al Moammar Information Systems Co. fell slightly by 0.50%, following an agreement with the American company Cloudera to host and distribute its services in the Kingdom.

SABIC Agri-Nutrients Co. gained 0.84%, following the announcement that it will pay dividends of SR4 per share in the first half of the year.

Saudia Dairy and Foodstuff Co. fell 0.47% following shareholder approval of SR0.50 per share for dividends in 2021.

Dar Alarkan Real Estate Development Co. fell 1.25%, following the appointment of Yousuf Al Shelash as chairman and Majed Abdul Rahman Al Qasim as vice chairman.

Retal Urban Development Co. lost 1.81%, following the acquisition of SR339 million of residential land in the master plan community of Sedra.

In energy trading, Brent settled at $117.10 a barrel and US West Texas Intermediate reached $111.20 a barrel, as of 10:06 a.m. KST.

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ECOWAS sensitizes Member States on the new regional infrastructure master plan https://guideglobal.com/ecowas-sensitizes-member-states-on-the-new-regional-infrastructure-master-plan/ Mon, 27 Jun 2022 16:30:11 +0000 https://guideglobal.com/ecowas-sensitizes-member-states-on-the-new-regional-infrastructure-master-plan/ Download logo Concerned about the growing infrastructure deficit and the need to meet the challenge of financing regional infrastructure projects, the ECOWAS Commission, through the ECOWAS Project Preparation and Development Unit (PPDU), and the transport, telecommunications, energy and water resources sector departments, held a sensitization meeting on the recently developed ECOWAS regional infrastructure master plan. […]]]>

Download logo

Concerned about the growing infrastructure deficit and the need to meet the challenge of financing regional infrastructure projects, the ECOWAS Commission, through the ECOWAS Project Preparation and Development Unit (PPDU), and the transport, telecommunications, energy and water resources sector departments, held a sensitization meeting on the recently developed ECOWAS regional infrastructure master plan. The event which was held from 23-24 June 2022 at the Alisa Hotel, Accra, Ghana, brought together officials from Ministries of National Planning, Economic Development and Finance of Member States, representatives of infrastructure committee of the ECOWAS Parliament, the Community Court of Justice and Development Partners. The objective of the meeting was on the one hand to present the newly approved master plan to the ministries in charge of national planning of the Member States, and on the other hand to the ECOWAS institutions (Parliament, Court of Justice and EBID) and to development partners,

The ECOWAS Regional Infrastructure Master Plan was approved by the Authority of Heads of State and Government during the 60e Summit held in December 2021. The 25-year master plan covering the period 2020-2045 includes 201 regional projects with an estimated cost of USD 131 billion covering all member states that form the regional bloc. The ECOWAS infrastructure master plan covers four key sectors (transport, energy, telecommunications and water resources) and contains both intangible projects (facilitation, service improvement, efficiency measures, studies, project preparation, institutions and capacities) and concrete projects involving physical investment projects. . It also details the roles of the main actors and stakeholders in its development and implementation.

The President of the ECOWAS Commission, H. E Jean Claude Kassi-Brou whose speech was read by the Commissioner for Infrastructure of the ECOWAS Commission, Mr. Pathé GUEYE reaffirmed the political commitment of the Conference of Chiefs of State and Government to put in place an appropriate regional framework to ensure effective infrastructure service delivery in ECOWAS countries. He cited the potential challenge associated with the implementation of the master plan, particularly in terms of mobilizing adequate resources to cover the entire estimated budget. He therefore reiterated the need to mobilize private finance by leveraging the recently adopted regional PPP policy and guidelines. The Honorable Commissioner also highlighted the FODETE initiative “Fund for the development of regional energy and transport projects in ECOWAS” undertaken by ECOWAS, as a key to facilitate the mobilization of local resources in recognition of the huge investments required. to implement the master plan.

Speaking on behalf of the Spanish Cooperation for International Development, financial partner of the ECOWAS PPDU, the Ambassador of Spain to Ghana His Excellency Javier Nanette, on behalf of the Spanish Cooperation for International Development, thanked the Commission of ECOWAS for initiating the meeting to promote the master plan. He reiterated the support of the Spanish Agency for International Cooperation and Development (AECID) to the PPDU, including support for the technical studies of the Dakar – Bamako railway project which is one of the flagship projects of the Master Plan. He wished the participants fruitful deliberations.

The keynote address was delivered by the Director of Public Investment – ​​Mr. David Klotey Collison – on behalf of the Honorable Minister of Finance of Ghana. He welcomed all participants to Ghana and reaffirmed the continued support of His Excellency Nana Addo Dankwa Akuffo-Addo, President of Ghana towards better regional integration through the provision of high level infrastructure. He mentioned the deliberate effort to ensure an adequate geographical distribution of the projects retained in the master plan, in particular the landlocked and island Member States. Mr. Collison highlighted the Government of Ghana’s efforts in regional infrastructure development, citing in particular the country’s active participation in the Abidjan-Lagos Corridor Highway Development Project and the establishment of a National Investment Fund. Infrastructure Investment, an independent fund established by the Government of Ghana. Ghana to mobilize, manage, coordinate and provide financial resources for investment in a diverse portfolio of infrastructure projects in Ghana. Mr. Collison urged all participants to consider the issues presented and make salient recommendations to facilitate the implementation of the regional infrastructure master plan.

After in-depth deliberations on the presentation of the master plan by ECOWAS, the participants agreed to create an ad hoc monitoring and evaluation committee and to intensify sensitization campaigns targeting Member States sector ministries and development partners. . The meeting also recognized the need to undertake the necessary project preparatory activities for individual projects to better engage financiers during the investment forums planned for 2023 and beyond, in order to have enough evidence to present the selected projects.

The closing address was delivered by the Chairman, Mr. David Collison, who thanked all participants and congratulated them for their contributions and active participation. He urged participants to adequately brief their respective ministers and incorporate the elements of the master plan into their respective national development plans.

Distributed by APO Group on behalf of the Economic Community of West African States (ECOWAS).

This press release was issued by APO. Content is not vetted by the African Business editorial team and none of the content has been verified or validated by our editorial teams, proofreaders or fact checkers. The issuer is solely responsible for the content of this announcement.

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Mike Copeland: Karem Shrine Hotel Permit; Dave’s Hot Chicken; Overview of restaurants; Neighbor to the North | Local business news https://guideglobal.com/mike-copeland-karem-shrine-hotel-permit-daves-hot-chicken-overview-of-restaurants-neighbor-to-the-north-local-business-news/ Sat, 25 Jun 2022 22:42:00 +0000 https://guideglobal.com/mike-copeland-karem-shrine-hotel-permit-daves-hot-chicken-overview-of-restaurants-neighbor-to-the-north-local-business-news/ The transformation of the old Grand Karem Shrine building downtown into a boutique hotel recently hit a new milestone, with the City of Waco issuing a $25 million building permit to move the project forward. nearly $43 million. Chip and Joanna Gaines purchased the massive structure in 2019, confirming plans to transform the site into […]]]>

The transformation of the old Grand Karem Shrine building downtown into a boutique hotel recently hit a new milestone, with the City of Waco issuing a $25 million building permit to move the project forward. nearly $43 million.

Chip and Joanna Gaines purchased the massive structure in 2019, confirming plans to transform the site into a special place in the Magnolia family, in partnership with Adventurous Journeys Capital Partners. They said it would be named Hotel 1928 to recognize the year the building opened. McLennan County bought the structure in 1995 for office space, then sold it to the Gaines in 2019. The Shriners moved elsewhere years ago.

“Renovation of a three-story building, conversion of county offices and Shriners lodge into a hotel…consists of 33 keys, restaurant, retail, ballroom, back of house spaces, addition to create a fourth floor “, says the recently obtained permit.

Translated, according to Tribune-Herald reports, the hotel will have 33 rooms, an 8,000 square foot restaurant, 6,200 square feet of meeting space and a 3,550 square foot rooftop terrace. squares.

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The Gaines’ interest in the building at Seventh Street and Washington Avenue has been around since at least 2018. The project has already received a permit to create “model rooms” as models for the hotel’s accommodations.

Magnolia received a pledge of $5.5 million from the Waco Tax Increase Funding Area, the money for historic consultants, facade improvements, public parking, burying utility lines utilities and water, storm and sewer works, the Tribune-Herald reported in October.

Magnolia said it hopes to complete the renovation by next year.

Dave’s Hot Chicken

To find Waco’s new Dave’s Hot Chicken restaurant, just travel on Interstate 35 near New Road and watch for an explosion at a paint factory, or a reasonable facsimile thereof. The exterior is a sight to behold, the interior more functional. Dave’s family hosted and guests on Thursday ahead of a grand opening on Friday. The food was good, but most impressive was the assurance and courtesy of the employees on Thursday’s free party.

Dave’s occupies the former Carl’s Jr. burger joint near Hooters and IHOP, not far from Cinemark, Topgolf and Main Event. The concept traces its founding to a parking lot in East Hollywood, California, where three friends pooled their resources, $900 between them, and opened a chicken stand. The taste, texture and spiciness of the product were all the rage. Dave’s Hot Chicken has taken off nationwide, with concentrations on the West Coast and in Texas.

Dave’s serves made-to-order Nashville-style offerings and sliders, with customers choosing lightly seasoned cuts or ones so spicy they’re nicknamed “The Reaper.” Honey is available, which is a good sign, personally. Sides include mac and cheese, kale salad, fries, and cheese fries. Soft drinks dominate drink options and milkshakes appear on the menu.

Restaurant overview

Dave’s arrival highlights a busy time in Waco’s culinary scene.

Construction has begun on Fish City Grill at Legends Crossing, the upscale development near Baylor Scott & White Hillcrest Medical Center. And sources say the land will soon be open on Willie’s Grill & Icehouse at New Road and I-35. Willie’s offers Cajun and Tex-Mex dishes, burgers and beer.

A building permit has been issued to place a new McDonald’s restaurant at 500 N. Robinson Drive. Bids are being accepted for work to install a Crumbl Cookies store at 922 S. 10th St., according to the local newsletter Associated General Contractors of America. The task would include the installation of kitchen equipment and electrical and plumbing systems, the bulletin said. Crumbl Cookies, a growing chain, touts its freshly baked cookies and home deliveries. It also has a location at the Central Texas Marketplace.

neighbor to the north

Neighborly, the Waco-based franchising giant specializing in home repair and service brands, said it would play an important role for businesses in Canada. Target markets include Toronto, Kitchener/Waterloo, Ottawa, Calgary and Vancouver, where it hopes to establish more than 100 franchise units.

Interestingly, the press release announcing the move spells Neighborly as Neighborly, which is more common outside of the United States. Neighborly has become a member of the Canadian Franchise Association.

Concepts heading north include Aire Serv, Five Star Painting, The Grounds Guys, Glass Doctor, Mr. Appliance, and Mr. Electric, among others. Initial investments range from $62,100 to $267,000, depending on the brand.

Gas prices

Gas prices fell 9 cents per gallon statewide in the week ending Thursday, and 15 cents in Waco during that period, AAA Texas reports. This put the Waco average at $4.48 per gallon for regular unleaded.

AAA warned that the price drop may not last. A record 3.1 million Texans are expected to travel more than 50 miles during the July 4 holiday, and increased demand generally translates into higher prices.

Texas has the ninth-lowest gasoline price in the United States, averaging $4.60 per gallon, while California has the highest at $6.36 per gallon.

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Coming soon: hotel planned at Ely Community Center https://guideglobal.com/coming-soon-hotel-planned-at-ely-community-center/ Thu, 23 Jun 2022 00:17:00 +0000 https://guideglobal.com/coming-soon-hotel-planned-at-ely-community-center/ Keith Vandervort ELY – The historic community center building here is set to become a 28-room boutique hotel following a city council vote this week to accept a purchase agreement and business plan from a developer and approve an order authorizing the sale of the monument.Matt Stupnik, of Dellwood, Minnesota, has accepted the $2 purchase […]]]>

Keith Vandervort

ELY – The historic community center building here is set to become a 28-room boutique hotel following a city council vote this week to accept a purchase agreement and business plan from a developer and approve an order authorizing the sale of the monument.
Matt Stupnik, of Dellwood, Minnesota, has accepted the $2 purchase price for the building and has three years to complete his plan to transform the former community center into a boutique hotel “to serve travelers seeking a year-round stay – a way that would complement their backcountry, bicycling, shopping and business experience.
City attorney Kelly Klun said Stupnik had worked with city officials over the past year to develop his plan. Following a public hearing on Tuesday evening and the second reading of the land sale ordinance, council members voted to authorize the sale. “We intend to complete the transaction within the next week,” Klun said.
No one attended the public hearing. Klun provided details of Stupnik’s plan that had not previously been made public.
The retail area on the main level would contain a wine and beer bar, kitchen, lobby with espresso bar, and hotel rooms. The auditorium stage would be updated for performances and serve as a small event space.
The business plan also describes that half of the auditorium would be converted into one or two bedroom units. Also, atrium-style windows/skylights near the stage would provide much-needed light. The units would have access to the roof through a functional skylight on the roof, in addition to a screening room converted into a penthouse with access to the roof.
“As the building is on the National Historic Register, certain parts of the building would certainly be preserved in their natural character,” Klun said. All hallways in common areas would be maintained, from travertine marble to terrazzo floors. In addition, the moose mural would be preserved.
According to Stupnik’s plan, the basement of the century-old building would be converted into a retreat-style spa center with mineral baths, a steam room and a sauna, with the potential for additional services as the business expands.
“Employment-wise, he would employ eight to 10 people to run the business when it’s fully operational,” Klun said. “He expects to pay up to 12,000 hours of construction labor, or about $1.5-2 million, over the course of the project.”
The current schedule for the construction plan would be three years, beginning in January 2023. The project will be completed in accordance with the National Park Service (NPS) Book of Standards for Renovation and Adaptive Reuse. The Stupnik Community Center Renovation Plan was recently approved by the Minnesota State Office of Historic Preservation, “and now awaits full approval and certificate of award from the NPS.” The certificate is expected this fall and the three-year construction project would begin in 2023.
“If he does not complete the reconstruction of the building within three years, or make significant progress, as determined by the council, the council may take over the building,” Klun explained. “There is a right of re-entry which is attached to the purchase. Although it pays a very nominal purchase price of $2, we understand that the construction project (cost) is significant and if not followed through, the council can repossess the building.
She continued, “Ideally, we want this to succeed, of course. I think he presented a fairly detailed plan. He worked with architects. He has completed several projects. His experience is in solar construction, so he has a background in construction.
Mayor Roger Skraba said he was impressed with the construction plan. “Some of us have seen some of the working drawings, and the stage is one of the areas of the building that should stay natural. It’s a pretty big and large area,” he said. “Our community may not be able to use the CC like we used to, there might still be some usage. I’m optimistic.”
Skraba added: “Our biggest concern is parking. We pretty much expressed to (Stupnik) that under clear conditions, if it’s not there, there will be no occupancy certificate issued. It must have at least a minimum of 26 or 28 parking spaces. In three years, there will be at least 26 or 28 parking spaces.
Klun reiterated that in the purchase agreement, a list of “steps” to go through addresses the issue of parking. “Within three years, the purchaser will have to secure and arrange the necessary parking within the scope of the project, as determined by the City.
Further, “When project requirements have been sufficiently identified, the purchaser shall prepare and periodically, at least twice a year, update the project schedule for city review. The project must identify the elements that affect the timely completion of the project.
Skraba said city officials expect construction labor costs to be as high as $2 million. “Material costs will likely be even, so we estimate it could cost him up to $4 million,” he said. “And $5 million isn’t far. Its financing is based on a portion of the value of the building. There is a window closing for him by the end of the year for him to have the opportunity to request matching dollars.
Skraba expressed his enthusiasm for the project and the developer. “He was very upfront and honest about everything. I feel comfortable working with him. He’s in the business,” he said. “The trend is to renovate old buildings, rather than demolish them. It is a unique opportunity. Hopefully the building will be saved and reused. We don’t want to have to take it back and start all over again. We want this project to succeed. »
Before voting on the ordinance at the regular council meeting. Council Member Al Forsman said, “It’s exciting that something valuable to our community is being offered here. It is an important investment in our community that is put forward. This will generate dollars, both in jobs, improving property and taxes.
Council members voted 5-0 to approve the community center sale order. A council member, Heidi Omerza, was absent from the meeting. Council member Angela Campbell abstained from voting on the measure.

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Illinois governor’s race is shaping up to be a battle of billionaires https://guideglobal.com/illinois-governors-race-is-shaping-up-to-be-a-battle-of-billionaires/ Tue, 21 Jun 2022 04:00:26 +0000 https://guideglobal.com/illinois-governors-race-is-shaping-up-to-be-a-battle-of-billionaires/ When hedge fund billionaire Ken Griffin decided to throw $50 million of his own money behind a candidate to unseat a fellow billionaire from the Illinois governor’s mansion, the scale of his spending should have made it a surefire plan. . Only problem: a rival Republican billionaire had the same idea. Today, the race pits […]]]>

When hedge fund billionaire Ken Griffin decided to throw $50 million of his own money behind a candidate to unseat a fellow billionaire from the Illinois governor’s mansion, the scale of his spending should have made it a surefire plan. .

Only problem: a rival Republican billionaire had the same idea. Today, the race pits three of the wealthiest men in American politics against each other and has come to symbolize the new trend in state-level political races – candidates funded by a single wealthy, highly motivated donor.

The incumbent, Democrat JB Pritzker, is an heir to the Hyatt hotels fortune who self-funded his campaign to the tune of $125 million. Republican Richard Irvin, traditional mayor of the state’s second-largest city, is backed by Citadel chief executive Griffin. And his rival for the Republican nomination is Darren Bailey, a far-right senator who received more than $9 million from GOP megadonor Richard Uihlein.

While Uihlein injected far less into the race than Griffin and got involved at a later date, it is Bailey, backed by Uihlein, who is 15 points ahead of Irvin, according to a new survey of likely Republican voters in the June 28 primary.

The election is on track to be the most expensive gubernatorial race in US history, according to OpenSecrets, the nonpartisan watchdog group.

It will also be a litmus test of how influential individual donors can be by writing a big check to support a candidate early in the race – a trend that has grown since the Supreme Court lifted funding limits. campaigns in 2010. Traditionally, billionaires like Uihlein, a shipping supplies magnate, and Griffin, would channel their donations through party committees and PACs, which would then choose candidates to support.

Griffin and Uihlein aren’t the only ones taking the direct route. Tech billionaire Peter Thiel recently made a habit of writing $10 million and $20 million checks to right-wing midterm candidates long before their primaries.

Richard Irvin, left, and Darren Bailey

Even in this small universe of multimillion-dollar individual donations, Griffin’s donations have drawn attention. “I’ve never seen anything like it,” said a Republican fundraiser.

Prior to the Supreme Court ruling, political donations were capped at thousands of dollars. “If a corporate PAC donates $10,000 in a cycle, that’s huge. You have this candidate’s ear, you have almost unlimited access,” the Republican fundraiser said. With Griffin giving away tens of millions: “The amount of power he has is unbelievable.”

So far this cycle, Griffin has donated more than $65 million to largely Republican candidates at the federal and state levels, according to data from OpenSecrets. In the 2020 cycle, it has given more than $180 million to state and federal candidates, while in Illinois it has pumped $179 million into races since 2002, according to data from the Illinois Board of Elections. State of Illinois.

While Illinois is a reliable Democratic state in presidential elections, there is much more competition at the gubernatorial level. The state behaves like Massachusetts, Vermont, and Maryland — all blue strongholds that regularly elect Republican governors. Of Illinois’ six governors since 1991, half have been Republicans, including Pritzker’s predecessor, Bruce Rauner, another multi-millionaire turned politician.

For Griffin, the state’s richest man, running for Illinois governor is personal. In November 2021, he told reporters he would go “all-in” to financially support the candidate he thought had a chance of defeating Pritzker, with whom he clashed over tax regulations and the police.

“Richard Irvin is the exact opposite of JB Pritzker,” Griffin told the Financial Times. “As mayor of Aurora, Richard has been successful in addressing the issues that matter most to Illinois.”

Pritzker, by contrast, has failed to curb “the senseless violence and corruption engulfing the state,” Griffin added, insisting the incumbent – whose sister Penny was Barack Obama’s Commerce Secretary – has “focused on its own political image and ambitions”.

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Representatives for Pritzker and Uihlein did not respond to requests for comment. Bailey’s campaign noted that the state senator had the support of more than 20,000 volunteers, in addition to Uihlein’s financial support. Irvin said a vote for Bailey, whose right-wing views and hardline anti-abortion platform could turn off the state’s millions of moderate voters, is a vote for Pritzker.

“It’s like two bullies in a playground,” said Chris Mooney, a political science professor at the University of Illinois at Chicago, referring to Pritzker and Griffin.

A Democratic strategist involved in Illinois politics called the Republican primary “surprisingly intense,” warning that the general election could be too, despite the money Pritzker himself poured into his campaign.

“Money can’t buy everything, and Pritzker shouldn’t be seen as a sacred cow that can never be defeated. He obviously can,” the strategist added.

Illinois has long had a tradition of colorful – and sometimes corrupt – political figures, many forged in the harsh world of Chicago’s bare-knuckle campaigns where labor unions, real estate developers and a handful of political dynasties vied for power. domination. Griffin, Uihlein and Pritzker change that.

“The typical machine politics that dominated the money game . . . has now been replaced by a handful of billionaires,” the strategist said. “It may reduce corruption, but I don’t know if it’s best for democracy.”

Despite the growing number of candidates getting a single billionaire backer — as well as billionaire candidates self-funding their campaigns — it remains unclear whether the funding model is a path to success.

“When you have a candidate who gets most of their money from a specific person or group. . . it’s not the same as getting money from a wide variety of voters,” said Pete Quist, deputy research director of OpenSecrets.

Most donors who are willing to give candidates small contributions are also more motivated to vote, Quist added.

Todd Maisch, chief executive of the Illinois Chamber of Commerce, said he viewed the billionaire’s political model as unnatural and unsustainable and believed Irvin’s inability to gain traction despite Griffin’s backing was “the end of billionaires deciding what will or will not happen in Illinois”.

Others are less optimistic. ” I do not think so [the billionaires] are going to disappear, ”said another Democratic strategist. It may just “take a while before they get to a place where the workforce [unions have] been in Illinois”.

Additional reporting by Caitlin Gilbert in New York

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3 tech stocks to buy after the Fed’s interest rate hike https://guideglobal.com/3-tech-stocks-to-buy-after-the-feds-interest-rate-hike/ Sun, 19 Jun 2022 11:00:00 +0000 https://guideglobal.com/3-tech-stocks-to-buy-after-the-feds-interest-rate-hike/ Stocks fell further this week after the US Federal Reserve announced a 0.75% interest rate hike, the biggest since the mid-1990s. inflation, but it is a blunt instrument that could also send the economy into recession. Stocks react accordingly. https://www.cnbc.com/2022/06/15/fed-hikes-its-benchmark-interest rate-by-three-quarters-of-a-point-the-biggest-increase-since-1994.html Despite all the uncertainty, however, long-term investing is far from dead. In fact, there […]]]>

Stocks fell further this week after the US Federal Reserve announced a 0.75% interest rate hike, the biggest since the mid-1990s. inflation, but it is a blunt instrument that could also send the economy into recession. Stocks react accordingly. https://www.cnbc.com/2022/06/15/fed-hikes-its-benchmark-interest rate-by-three-quarters-of-a-point-the-biggest-increase-since-1994.html

Despite all the uncertainty, however, long-term investing is far from dead. In fact, there could be real bargains if you plan to buy and hold on for at least a few years (but the longer the better). Three Fool.com contributors think Amazon (AMZN 2.47%), T-Mobile (TMUS 2.66%)and Albemarle (ALB 4.88%) are a buy after the Fed raised rates again. Here’s why.

Just another ordinary speed bump for Amazon

Anders Bylund (Amazon): Let’s go back to a fairly recent story. The federal funds rate was a meager 0.30% in the summer of 2016. Inspired by a stronger economy, the Fed launched a rate hike campaign in December, leading to a reading of 2.40% at the end of 2018.

E-commerce giant Amazon took these rate changes in stride, posting price gains of 165% over the same period:

AMZN given by Y charts.

I’m not saying higher interest rates were good news for Amazon at the time. The company was taking on $15 billion in additional debt at the time, funding its takeover of grocery chain Whole Foods Market. If Amazon had even had an interest in keeping rates low, now would have been the perfect time.

What I am saying, however, is that Amazon has created a powerful business model that will work well in virtually any economy, any market environment, and any interest rate trend. This stock tends to beat the broader market over the long term.

This is especially true these days, as the once meager results have gained superpowers through the cloud computing business of Amazon Web Services (AWS). Seventy-four percent of Amazon’s operating profits came from AWS in 2021, up from 59% in 2020. Even though online retail is hitting a brick wall (which it didn’t and probably won’t happen anytime soon), AWS will continue to generate massive cash profits.

As a high-growth investment, Amazon’s stock has been dragged down in recent months. The shares are trading around 40% lower year-to-date, and I take this as an invitation to invest in a terrific blue-chip stock. Either way, Amazon should deliver stunning stock returns for the next decade or five, just as it did during the subprime lending crisis, the bursting of the dotcom bubble, and the first year of the pandemic. of coronavirus.

This investment keeps rolling with the punches and comes back stronger on the other side of every challenge. It’s no different this time around, and it’s a smart move to buy Amazon stock when it’s cheap.

A necessary value product with growing profits and little concern for inflation

Billy Duberstein (T-Mobile): Don’t make a mistake. We may be able to avoid a recession, but that’s a long way off now. We’re probably going to have some sort of economic downturn to get inflation under control.

That means looking for defensive stocks that trade at reasonable valuations, and that’s why I’m going with my favorite telecom – T-Mobile. Why T-Mobile? First of all, T-Mobile has a long reputation for offering the best value in the mobile space.

For example, T-Mobile just unveiled its latest “Un-carrier” move on Thursday, unveiling deep travel discounts. T-Mobile offers free high-speed data in 210 countries, plus free in-flight connectivity and streaming on all major airlines. It also offers exclusive discounts with Priceline for hotel bookings, as well as $0.25 per gallon of gas at Shell (SHEL -4.71%) gas stations until Labor Day.

Yet unlike the 4G era, in which it had an admittedly inferior network, T-Mobile is now the leader in 5G coverage. While other cable companies also offer low-cost mobile plans when paired with expensive wired internet, these cable companies still use Verizon (VZ 0.39%) like their wholesale wireless network. Based on strong recent results, T-Mobile has no problem attracting customers, with strong net additions last quarter.

This year, T-Mobile is expected to complete most of its network integration with Sprint, which the company acquired in early 2020. Once completed, T-Mobile will have decommissioned 35,000 cell sites and its profits are expected to soar. sharply. Management expects between $7.1 billion and $7.6 billion in free cash flow this year, but that is expected to double or nearly double next year. In its 2021 analyst day, T-Mobile forecast free cash flow of $13 billion to $14 billion in 2023. This growth comes from its lead in 5G, its foray into rural areas, and mobility. business, where it has traditionally been underrepresented relative to its peers. T-Mobile’s $155 billion market capitalization means it only trades around 11 to 12 times its 2023 free cash flow estimate.

Meanwhile, T-Mobile is also looking at its 5G wireless broadband offering, which it hopes will compete with big cables. Given that 5G home broadband costs just $50 a month, well below that of cable companies, it could also find a receptive audience for value-seeking consumers. After all, wireless Internet and broadband are necessary utilities these days, and consumers will need them even in lean times.

Also, T-Mobile’s cost structure isn’t really affected by inflation. There may be some wage pressure, but most of its operating costs are for things like tower leases, which are usually at fixed rates under long-term contracts.

Overall, T-Mobile has a value offering, a necessary product, and relative immunity to inflation on the cost side. It’s a defensive title to own for this type of environment.

With gasoline soaring, demand for electric vehicles isn’t going away any time soon

Nicholas Rossolillo (Albemarle): The price of gasoline is one of the hottest segments of consumer spending that drives up inflation. Gasoline was up nearly 49% year-over-year in May 2022, according to the U.S. Bureau of Labor Statistics. Consumers across the country are grappling with gasoline that costs $5 a gallon or sometimes more to fill up. Not everyone can get their hands on an electric vehicle (EV), but I expect high gas prices to keep EV demand high.

Of course, gas isn’t the only inflated product category. New car sticker prices are also very high, up almost 13% year-on-year in May. Electric vehicles themselves and the expensive batteries needed to power them are undoubtedly contributing to this trend. For better or worse, however, lithium (a key compound in the manufacture of electric vehicle batteries and electronic device batteries in general) is in demand but in short supply. That’s why I accumulated shares of Albemarle.

Let me acknowledge that this is not a cheap stock. Although management recently updated its 2022 outlook on high lithium prices and new production coming online, the shares are trading at more than 13 times the expected 2022 adjusted EBITDA (earnings before interest). , taxes, depreciation and amortization). Also keep in mind that Albemarle isn’t the only company scrambling to bring new lithium production online to meet growing demand for EV batteries. Other companies are playing in this sandbox, and more supply could help ease the market price of lithium.

Another risk is that automakers and their battery technology partners are experimenting with materials other than lithium. It could also cause problems for Albemarle at some point. Additionally, Fed rate hikes make financing future production projects a bit more expensive. So I’ll say it again: Albemarle isn’t cheap, and it’s possible its development pipeline will run into issues down the line.

Still, I think the global shift to electric vehicles will take a decade or more, and in that time Albemarle will have the opportunity to grow with it. Rather than betting on which EV maker will win, I think Albemarle can be a winner as it helps supply the entire rapidly changing automotive industry.

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Clearwater council chooses developer’s $400 million plan for downtown bluff https://guideglobal.com/clearwater-council-chooses-developers-400-million-plan-for-downtown-bluff/ Fri, 17 Jun 2022 14:02:20 +0000 https://guideglobal.com/clearwater-council-chooses-developers-400-million-plan-for-downtown-bluff/ Clearwater officials have been dreaming for decades of how to best use the pristine downtown bluff, and on Thursday the city council unanimously chose a development team’s $400 million plan to transform it with residential, commercial and hotel projects. Now city staff have less than three weeks to negotiate with the New York-based Gotham organization […]]]>

Clearwater officials have been dreaming for decades of how to best use the pristine downtown bluff, and on Thursday the city council unanimously chose a development team’s $400 million plan to transform it with residential, commercial and hotel projects.

Now city staff have less than three weeks to negotiate with the New York-based Gotham organization and Pinellas County’s DeNunzio group to create terms that can pass Clearwater voters’ scrutiny.

The council must approve a development deal on July 7 to meet the deadline to get the referendum question in the November ballot.

Council members agreed that the deal would include the sale to the developer of two bluff parcels: the now-demolished 1.4-acre Harborview Center site at the corner of Osceola Avenue and Cleveland Street and the property of 2.6 acres half a block south with the old Town Hall.

Historically, Clearwater voters have been fiercely protective of the bluff. Mayor Frank Hibbard confirmed deed restrictions would be built into the deal specifically to allay long-standing fears that a developer would turn over the land to the Church of Scientology, the downtown core’s largest landowner.

The two sites surround the 22-acre waterfront, where the city is spending $84 million to renovate Coachman Park with an amphitheater, garden, walkway and boardwalk.

“I have children and grandchildren here in Clearwater, and I want them to be able to see again what Clearwater can be,” said council member David Allbritton. “When I was a kid it was a very, very vibrant place and it hasn’t been that long and hopefully that will be the first step.”

Gotham and DeNunzio’s plan, called The Bluffs, proposes paying $15.4 million for City Hall and $9.3 million for the Harborview plot.

A rendering of the Harborview site featuring a 13-story, 150-room hotel with 15,000 square feet of retail and restaurant space, a conference center, a rooftop bar and pool, and an underground garage. [ The Bluffs development group ]

For Harborview, the group launched a 13-story, 150-room hotel with 15,000 square feet of retail and dining space, a conference center, rooftop bar and pool, and 163 underground parking spaces. .

The plan includes two 27-story towers with 600 combined rental units for City Hall, with 25,000 square feet of retail and restaurant space and 600 underground parking spaces.

The residential project on the City Hall site could cost $325 million, with the Harborview Hotel costing $75 million to be covered by private financing, according to Gotham Vice President Matthew Picket. He said Gotham has secured $1.2 billion in debt and equity for projects in New York since 2019 and has a joint venture partnership with Goldman Sachs.

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Bluffs Development Group offers two 27-story apartment towers on the site of the Old City Hall near the downtown waterfront.
Bluffs Development Group offers two 27-story apartment towers on the site of the Old City Hall near the downtown waterfront. [ The Bluffs development group ]

Picket said the Clearwater project would be built in two phases. The hotel and the first residential tower would start in 2024 and be completed two years later while the second tower would be completed in 2028.

The Bluffs didn’t specify the minimum incentives the team would need. The grant will be determined during development agreement negotiations on July 7.

Council members said they would have preferred to lease the Harborview site rather than sell it for fear voters would be willing to part with the land. But if the city offered to sell City Hall and lease the Harborview site, the split deal would require two referendum questions, which the council said would create an overly complicated ballot.

A single referendum with a lease for both sites would be difficult because developers are less likely to secure funding for the City Hall residential project if they do not own the land, the city attorney said, David Margolis. A referendum question with a sale of both sites was the most feasible, they agreed.

The Bluffs was the unanimous recommendation of City Manager Jon Jennings and a staff committee from three proposals received.

On Tuesday, council members heard from 20 supporters of another proposal, Elevate Clearwater, led by a large team that includes Tampa’s Channel District developer Ken Stoltenberg and Clearwater investor Daniels Ikajevs.

Elevate proposed a 200-room hotel for the Harborview site and 388 apartments and townhouses in a 24-story building for the City Hall site with retail, culinary incubator and grocery store.

Most board members agreed with staff that Elevate’s incentive application, which included a tax abatement and an interest-free loan, was too expensive and complex. They also preferred The Bluffs plan for the way the buildings fit in with the adjacent park and waterfront views.

Council member Lina Teixeira was the only one to prefer Elevate’s proposal, citing its offer of more parking spaces, a unique building for the residential site and a music-themed hotel. which could bring an identity to the city centre. Outnumbered, she said she wanted to pivot to show unity with the council ahead of the referendum, which others echoed.

“I hope everyone in this room, no matter what team you’re on, will support the referendum we have in November because if you really care about Clearwater, that’s the best thing to do.” , Hibbard said.

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‘There’s a lot going on’: Redondo Beach Mayor Bill Brand delivers State of the City address https://guideglobal.com/theres-a-lot-going-on-redondo-beach-mayor-bill-brand-delivers-state-of-the-city-address/ Fri, 10 Jun 2022 22:03:09 +0000 https://guideglobal.com/theres-a-lot-going-on-redondo-beach-mayor-bill-brand-delivers-state-of-the-city-address/ by Garth Meyer Redondo Beach Mayor Bill Brand delivered his “state of the city” address Wednesday, in person at the Sonesta Hotel, touting city projects such as port amenities, a new name for a South Bay Galleria redone, a new use for an old library and new city funding. He also presented a lifetime achievement […]]]>

by Garth Meyer

Redondo Beach Mayor Bill Brand delivered his “state of the city” address Wednesday, in person at the Sonesta Hotel, touting city projects such as port amenities, a new name for a South Bay Galleria redone, a new use for an old library and new city funding.

He also presented a lifetime achievement award to the man who developed Shade Redondo Hotel.

Brand, in the second year of his second term as mayor, spoke to the crowd about the city’s $600,000 structural budget deficit, $6 million net loss from the pandemic, and what he described as perhaps the biggest item of the last year – the $226 million refinancing of California Public Employees Retirement System (CALPERS) debt from 7% interest to 2.8%.

“It’s hard to believe, but it’s saving the city $100 million over the next 28 years,” Brand said.

He talked about the amenities plan and a city council vote the day before to go ahead with a concept for a waterfront education facility.

“To be able to engage disadvantaged communities of color in Los Angeles,” he said.

He spoke of an effort to revitalize the Aviation/Artesia Boulevards corridor — to revamp parking standards and institute priority uses such as restaurants.

He reported that a 600-sheet building plan was recently submitted for the adaptive reuse of the South Bay Galleria – which will be renamed the South Bay Social District.

A full-scale mock-up of the project is set to go on display at the Galleria in August, he said.

For the historic 1930 city library at Veterans Park — where Brand once gazed out the windows at the ocean as a 10-year-old — community feedback is being gathered for potential new uses, which will be evaluated by the city ​​council in July.

Brand thanked police and public works for their quick response to the shooting at the pier last August. He thanked hospitals for their work during COVID-19 outbreaks.

“The State of the City” was featured in memory of Patricia Dreizler, who died last weekend at 96, known for her decades of community service. Emergency room

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Boutique hotel investor optimism comes with caveats https://guideglobal.com/boutique-hotel-investor-optimism-comes-with-caveats/ Thu, 09 Jun 2022 06:01:16 +0000 https://guideglobal.com/boutique-hotel-investor-optimism-comes-with-caveats/ Boutique hotels remain a relatively preferred asset for real estate investors. But in recent months, it’s become harder to get deals done, and certain types of projects are gaining more favor than others. “For boutique hotels, we’re really positive about the outlook,” said Amanda Hite, president of Hotel Data Tracker. STRas he spoke on Wednesday […]]]>

Boutique hotels remain a relatively preferred asset for real estate investors. But in recent months, it’s become harder to get deals done, and certain types of projects are gaining more favor than others.

“For boutique hotels, we’re really positive about the outlook,” said Amanda Hite, president of Hotel Data Tracker. STRas he spoke on Wednesday at the Boutique Hotel Investment Conference At New York.

Many boutique hotels saw profitability surpass 2019 levels. In April, U.S. boutique hotels posted average gross operating profit per available room of around $113, up 19% from April 2019 , according to data from STR.

“Even if there is a recession, business travel comes back and overlaps with the performance of boutique hotels,” Hite said. “You also have a resumption of international travel. Both will support the segment.

Hite also brushed aside fears that rising gasoline prices could dampen demand.

“We have over 30 years of data showing no correlation between rising gas prices and hotel demand,” Hite said.

Inflation becomes a brake

Still, while the big tailwinds for boutique hotels remain bullish, the positivity is not spread evenly.

Rising construction costs caused misfires.

“For 26 years, I underwrote hotels in front of investment committees, and no one ever asked me, ‘What’s your inflation assumption on your spending? “, said Clark Hanrattie, partner at HEI Hotels and Resorts. “Now it’s the first or second question.”

Inflation uncertainties add friction to construction financing.

A concrete example : Cedar Capital Partners, which has invested in hotels that collectively have nearly 2,000 rooms in the United States and Europe, had recently spent 10 months pursuing development of a condo hotel in Miami Beach’s South Beach neighborhood. In February, it was ready to begin the final renovations. But then bids for the work came in from contractors that were much higher than expected.

“We have decided to put the project on hold,” said Ben Leahy, a Cedar Capital partner, during a speech at the event. “It was a tough decision to take a break because Miami fundamentals have outperformed other markets so much.”

Leahy’s team is betting that a slowing U.S. economy will help drive construction prices down about 10%, or a similarly more acceptable level, by fall or the end of the year. year.

The hot market for hotel construction could cool down as lenders worry about a potential economic slowdown that will hurt their performance.

“Some lenders are still negotiating construction debt, but it looks like pricing has widened and they generally tend to be quite selective,” said Adam Maisel, director of Ramsfield Hospitalityhotel finance specialists.

Over the past two months, the credit environment has become more challenging for hotel acquisitions and refinancing, a few panelists said at the conference. The switch wasn’t a deal breaker for experienced players, but it did cause some delays.

Those last weeks, Global Apollo Management faced a lender that was reluctant to accept financing terms for a hotel deal, Apollo partner Jason Ourman said. The lender had concerns despite Apollo having the expertise gained from investing billions in hotels over the years and with the backing of financial titan Brookfield.

In some cases, unusual demand trends put investors and hotel developers at odds with each other.

“The cycle has been so geared towards growing leisure demand that some developers are saying we should get rid of meeting spaces for good,” said Robin Kennedy, executive vice president and chief development officer at International assembly.

“But what if business travel fully rebounds?” Kennedy asked. “You have to make your real estate decisions based on long-term trends.”

Bargain hunting

Some investors are looking for bargains due to market turmoil.

One opportunity is the handful of city hotels that are ditching the flags of global brands and going independent, Clark said.

Franchise agreements typically include a provision limiting damages in the event of termination if a hotel’s revenues fall below a certain multiple of the franchise fees. The pandemic has caused many hotels’ revenues to plummet, allowing them to break their franchise contracts for what are effectively lower kill fees than would otherwise be usual. In some cases, a property may become more attractive to certain investors as a free agent.

In Europe, some families have owned hotels for generations but are now facing financial difficulties. For these hoteliers, patience is running out for a full restoration of profitability.

“This presents a unique opportunity for investors to get their hands on these properties at relative prices,” said Eric Jafari, director of development at the hotel developer. Edyn.

More broadly, some boutique hotels could benefit from recent market disruptions. A funding slowdown that reduces development or conversion pipelines could lead to less competition in 2023, helping to support the pricing power of already existing boutique hotels.

“Supply has a huge impact on hotel performance,” said Adam Maisel, Director of Ramsfield Hospitality. “Slowing down the pipeline would be beneficial. It’s Econ 101.

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