Among the more noteworthy quotes from this week
was Wyndham Hotels & Resorts CEO Geoff Ballotti talking about the “noise” that
affected the company’s deal pipeline.
QUOTE OF THE WEEK
“The main challenge [in Los Angeles] is still the increased cost of hotel loans
and the number of lenders that have pulled out of the lending market. Sellers
have to first adjust their price expectations to meet the new higher cost of
debt. Second, the mansion tax is having a huge negative impact on
dispositions/acquisitions.” — Alan Reay, Atlas Hospitality Group Read story
“But more deal noise creates a more challenging sales environment, which really comes in two forms – owners are moving more slowly on committing to deals with us and an increased competitive deal landscape… But yes, we know our record Q4 could have been better both domestically and internationally without the noise.” — Geoff Ballotti, Wyndham Hotels & Resorts Read story
“When we
talk to our franchise partners on the midscale side, they feel like the size of
those commitments is something that they’re going to have a decent measure of
success in procuring debt.” — Anthony Capuano, Marriott International Read
story
“[Blackstone
selling the Arizona Biltmore] points at the continued strong interest of
international buyers for hotel assets, especially at the luxury end. We
anticipate that the expected interest cut from the Fed will unleash further
trading activity. However, we assume that the often commented on ‘wall of
distress’ will, once again, not materialize this year.” — Jan Freitag, CoStar Read story
“[Soho House] fundamentally rejects the recent report published by GlassHouse Research, which contains factual inaccuracies, analytical errors, and false and misleading statements, all designed to adversely impact the company’s stock price for the benefit of the short seller. The company was not contacted for any comment or clarifications prior to the report being released. The company is confident in the strength of its business and is focused on executing its strategy.” — Soho House statement Read story
“I
personally think the question is costs are still elevated. So, can buyers and
sellers come to an agreement on valuation and where people are willing to
trade?” —Deanne Brand, Host Hotels & Resorts Read story