(clockwise from top l.) Ilan Marcoschamer, Ophelia Makis, Michael Shindler, Francisco Zinser Hot Type: Banco Sabadell, Grupo Hotelero Santa Fe, JLLBy Jeffrey Weinstein & Mary Scoviak | June 15, 2023Share Some of our best quotes of the week, many pertaining to development and M&A in the Caribbean and Latin America. QUOTE OF THE WEEK“It kind of gave the sector a big seal of approval and has created a lot of interest on behalf of institutional investors,” he said. “Now you have groups like KSL, Starwood Capital and Blackstone that are dipping their toes in but not quite making a big move yet. But certainly, there’s interest.” – Ilan Marcoschamer, Banco Sabadell, on the impact of Hyatt’s acquisition of Apple Leisure Group on the all-inclusive sector Read story"In terms of development today, I would not consider newbuild development as much of an option. You have a very difficult mix of high interest rates. You have very high inflation costs. As an example, we just opened the Hyatt Regency in Mexico City. It would be impossible to do it today under the same budget that we had when we did it." – Francisco Zinser, Grupo Hotelero Santa Fe, on development in Mexico Read story“This striking juxtaposition is further evidenced by hotel acquisition composition as these sectors [luxury and select-service] have emerged as the most appealing and liquid amidst ongoing disruptions in capital markets. It’s anticipated that this trend will persist over the medium term.” – Ophelia Makis, JLL, on cap rates impact on deals Read story“There are pros and cons to a developer’s receiving a commitment of key money, and management negotiations are complicated by a brand manager’s agreement to contribute key money. A developer would be wise to understand those complications in a management setting before accepting the brand’s commitment.” – Michael Shinder, Four Corners Advisors, on the implications of key money being used to finalize a transaction Read story“There is more demand for brands in these sectors. There is a real cultural and behavioral shift in this space, so much so that we recently introduced the lifestyle/luxury lodging development team specifically to represent it. With the return of international travel and domestic high-end demand, developers and consumers alike are looking for this opportunity to continue to grow.” – Brian Quinn, Sonesta Hotels International, on the launch of two lifestyle soft brands Read storySNEAK PEAK (full story next week)“Our findings on syndication may not be earth shattering, but they are positive. They may provide one potential solution if indeed there is an overreliance on regional financiers. There are non-regional funders who are close to lending in the region but who would prefer to just dip their toe in the water initially and the syndication route with a regional financier may work for them.” – Gary Brough, Baker Tilly, discussing results of the Caribbean Hospitality Financing Survey 2023.