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 story
SNEAK 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.