Talk about the impact of bank failures gave us some of the more interesting quotes this week. Read our favorites and then read the entire stories.
QUOTE OF THE WEEK
“The SVB (Silicon Valley Bank)
failure has already seen funds moving from regional banks to the large ‘too big
to fail’ banks. This will reduce lending capacity of the regional banks,
which provide financing for a wide range of businesses, including hotel
transactions.” – Leland Pillsbury, Thayer Ventures, TLG Investment
Partners Read story
“The Fed is still likely to
hike interest rates by 25 bps, 25 bps lower than the discussed 50 bps hike they
had been considering, but still surprising to some in the face of these
collapses.” – Evan Weiss, LW Hospitality Advisors in response to the impact of
recent bank failures Read story
“One change that could make
headlines this year would be the possibility of some IPOs. It’s been a number
of years since we’ve seen anything on the IPO front, but you know, in the next
12 to 24 months, it would not surprise me to see one or two in the greater
hospitality space.” – C. Patrick Scholes, Truist Securities Read story
“Another red thread will be a
continuation of some of 2022’s challenges. Investors are concentrating on the
macro backdrop. Industry participants, particularly those looking to deploy
capital, are most focused on the capital markets dislocation. We have heard
from them frequently: There isn’t a fundamental problem, there’s a capital
markets problem.” – Michael Bellisario, R.W. Baird Read story
“We already have a cluster
manager for our two hotels in Brighton. We can take some of the back-office
functions out of the hotel and provide those services from a centralized
department. The same holds true for sales and marketing. The result is that we
can perform better on the top line and the cost side. That was a big upside.” –
Ronen Nissenbaum,
Fattal Hotels Read story
“In the current environment,
as lenders need solid footing to take on hotel loans, the CMBS and other
sophisticated lending groups may well be the only sensible option for a
borrower. The borrowers who have not done one of these loans will be
well-served to dig into their wells of patience and perseverance when choosing
this path.” – Michael Shindler, ISHC, Four Corners Advisors Read story