Some
of our best quotes of the week, including an insightful comment from Wyndham’s
CFO about the availability of financing at the community bank level.
QUOTE OF THE WEEK
“He was able to get five-year paper at a 75% loan to cost at a fixed rate of 6.75%. So, if you’re just reading the headlines, you wouldn’t think that type of financing exists. But it’s very much available at a community bank level.” – Michele Allen, Wyndham Hotels & Resorts, referencing recent financing finalized by an Echo Suites developer Read story
“We are seeing a variety of sellers, including developers
exiting from hotel components of new mixed-use developments, some legacy
transactions from pre-COVID times now getting completed on the back of
strengthening market fundamentals, and improved trading performance. As a
result, over the next 12 months the bid/ask spread will narrow as we move into
2024, resulting in an increase in hotel transactional activity.” – Mark Durran,
Savills Australia Read story
“While it is still early days, initial interest from the
development community has been extraordinary. We are working on several 100
deals and hope to have our first deal signed by the end of this year.” – Tony Capuano,
Marriott International, on pipeline for its new extended-stay brand, Project
MidX Studios Read story
“Currently, we are finding much more development in areas
like Southeast Asia, where it's direct, all cash, Middle East and quite a lot
in Eastern Europe There's a lot of really beautiful resorts in amazing areas in
these countries as well as areas being restored. In some other regions, it's
more challenging because of the financing and debt situation. That said,
anything premium, midscale and economy will have an easier time when it's a
conversion of an existing asset because it has a better ESG impact and requires
less financing. That's why, across all three segments, we're seeing a lot of
conversions because they cost less.” – Camil Yazbeck, CDO, Premium, Midscale
and Economy division, Accor Read story
“We believe wellness is one of the most powerful secular
trends of our time, and that Canyon Ranch is one of the best-positioned global
brands for capitalizing on growing demand for wellness and life enhancement,
domestically and internationally.” – Edward Pitoniak, VICI Properties, on its further
investment in the Canyon Ranch brand Read story