From some harsh realities about M&A to great advice for women getting ahead in hospitality, here are some of our top quotes and story links from the past week.
QUOTE OF THE WEEK
“There’s still a little discord and discomfort. So, everybody wants to get paid for the risk and make sure the upside is significant. No one’s really interested in buying yield.” – Greg Mount, Hay Creek Hotels on deal flow Read story
“Like many others, we’re finding the most love right now
with local banks who have the balance sheet to lend direct on 24 or 26 hotels
[or the 30 that Mission Hill will probably have by the end of the quarter]. The
large global banks are not as active. So, we pivoted to the local and regional
groups. The sponsorship really matters, but we’re finding that they’re dropping
the loan to value a little bit, maybe 5% or 10% more than what might have been
two years ago. But for good hotels, with a good track record and a sponsor,
we’re getting things done at a level that works for us.” – Greg Kennealey, Mission
Hill Hospitality Read story
“The Fed is managing through this [bank crisis] reasonably
well and is committed to making sure there are no runs on regional banks. For a
period, less credit will be available, but our share [of development] tends to
grow when times are tougher for financing... The question is moving projects to
under construction, and that will get more challenging.” – Chris Nassetta, Hilton Read story
(TEASER QUOTE – look for story on Monday)
“Changing and improving also comes from within – we need to have the confidence
to own our seat at the table, but also remain humble and ready to learn. We
need to take the initiative to grab a coffee with a mentor or phone an industry
friend to keep the connections alive, while also remembering to recommend those
from underrepresented groups the next time a recruiter friend calls with an
interesting opportunity.” – Katherine Button, Mullen Real Estate Capital, talking
about women getting ahead in the hotel business