Quotes of the Week: NewcrestImage, Concord Hospitality, Vision Hospitality

QUOTE OF THE WEEK
“[Distress] is a curse word in our industry, I would say because the seller has to win, and the buyer has to win. That’s the only way transactions happen… Whenever a seller sells something, there’s no transaction if he’s not needing it. Let’s be real: You can talk about bid-ask everything… [But] what is the seller’s motivation? Either he’s tired of the business, or he’s not getting success. That’s the reason he wants to sell.” – Muhel Patel, NewcrestImage  Read story

“The debt money is out there. It’s expensive, which makes it hard to make all the deals underwrite when combined with the increased construction costs and so on, but there’s enough out there. Then from an equity side, we’re seeing that we need probably slightly more equity than we historically needed because, as well as the cost being higher, the leverage is just slightly lower in those various pieces of the capital stack.” – Julie Richter, Concord Hospitality  Read story

“As an all-cash buyer, Apple [Hospitality REIT] does not have to be the high bidder in today's environment where sellers are likely to take a slight discount to have certainty of close with Apple on the other side of the trade (versus a levered buyer with a financing contingency).” – Michael Bellisario, R.W. Baird  Read story

“With modular, I’ve heard you could build it within four to six months. So, we’ll put a lot of effort into figuring that out.” – Mitch Patel, Vision Hospitality Group  Read story

“Our report [on Africa’s hotel pipeline] contains very positive data, with the pipeline expanding by more than 9% in 2023. This is the largest increase since 2018 and, according to data produced by CoStar/STR, is one of the highest increases globally, surpassed only by the Americas.” – Trevor Ward, W Hospitality Group  Read story

“The primary driver is high construction costs coupled with supply chain disruptions. While the latter has begun to abate, the former still remains quite strong, driven by higher material costs stemming from ongoing U.S.-China tensions and other geopolitical volatility.” – Zach Demuth, JLL  Read story

“I’ve no doubt that a Novotel, Pullman, even Ibis could have a lifestyle component, whether it’s design, culinary or personnel. And I’ve no doubt you can make an old hotel trendy; you just have to shift your mindset. I’m going to encourage enormous bridges between Ennismore and Accor so that all my owners are proud they are part of the adventure.” – Tony Chisholm, Accor  Read story

“To me, the most interesting would be leisure products rather than business hotels, especially those that are within driving distance of large cities.” – Kenny Gaw, Gaw Capital Partners  Read story

“As the markets in Europe begin to recover, we can anticipate a wave of new project announcements, which will drive the pipeline in Europe.” – Bruce Ford, Lodging Econometrics  Read story