Hilton to join Blackstone empire Jul 5, 2007 By: Stacey Mieyal Higgins

Beverly Hills, Calif.—In a July 3 announcement, Hilton Hotels Corp. entered into an agreement to be acquired by The Blackstone Group. Steven Bollenbach, co-chairman and c.e.o. (who is retiring at the end of the year and will be succeeded by Matthew Hart, current president and c.o.o.), said in a conference call the purchase price represents an excellent value for shareholders.

They are here. They are buying, selling and spending. Our industry has attracted some powerful new owners—real-estate companies. They are playing the numbers—adding and subtracting hotel portfolios, often in large chunks. They are not afraid to spend money to improve the value of their assets, and our industry is benefiting in some less-noticed ways.

San Francisco–The relationships between hotels and guests are critical to success, and when it comes to deals between hotel companies, relationships are just as important. The purchase of the former Adam's Mark Jacksonville (Fla.) in May 2005 by Oxford Lodging Advisory & Investment Group LLC led to the company buying the entire Adam's Mark chain.

New York–It's going to be a great summer, according to Richard Kelleher, chairman and c.e.o. of Pyramid Advisors LLC. And some say good times should hang on even longer.

The U.S. hotel industry had another record-breaking year, with $133.4 billion in total revenues and $26.6 billion in profits.

New York–Hard Rock Hotels wants to at least quadruple its current portfolio. The iconic brand synonymous with its "Love all. Serve all." motto plans to aggressively develop its lodging concept outside of the United States after the success of its first handful of properties, said Trevor Horwell, chief hotels officer for Hard Rock Hotels and Casinos.

NYU Conference demonstrates industry's good health Jun 7, 2007 By: Stacey Mieyal Higgins

NEW YORK--From the lively panels to the deal making, New York University's 29th Annual International Hospitality Industry Investment Conference was a three-day whirlwind of investment information and action from June 3 to June 5 at the Marriott Marquis. Left: Kathleen Taylor [right], president and c.o.o., Four Seasons Hotels and Resorts, tells Lalia Rach that the company's new private life is not much different than when it was public in terms of strategy. Taylor also squelched rumors of a new brand.

Hotels are probably the most capital-devouring major class of real-estate asset, far outweighing apartments, office buildings and shopping centers in the periodic need for major improvement expenditures. While wise hoteliers normally set aside 3 percent to 5 percent of gross sales in a replacement reserve fund, that is often insufficient to cover the true cost of overall property upgrading and repairs. More often than not, hotel modernization projects require capital expenditures in excess of what is generally available in the hotel's replacement reserve fund, leaving a budget hole that must be funded with fresh capital. This often presents a challenge when the existing first mortgage is in midlife and there is a prohibition against doing additional financing during the loan's term.

Leader panel: Could project costs be leveling off? Jun 4, 2007 By: Heather Gooch

While it's common these days to hear about the latest fuel price increase or for industry insiders to bemoan the costs of steel or labor, the actual outlook on the cost of development and construction is not as bleak as it might seem on first blush.

Acquisition timeline tops LIIC members' issues Jun 4, 2007

National Report–Each year, the think tank members of the Lodging Industry Investment Council are surveyed to develop a list of the major hotel investment opportunities and challenges for the coming year. This survey results in the LIIC Top 10, which is a profile of investment sentiment and attitudes for the lodging industry for the upcoming 12 months.

NYU Investment Conference: Relationship discussion on tap for franchising panel Jun 4, 2007 By: Tony Dela Cruz

Workshops on franchising at the New York University International Hospitality Industry Investment Conference experience higher interest during a robust building cycle, and this year is no different.

NYU Investment Conference: Legal panel to focus on condo-hotels, resort fees Jun 4, 2007 By: Marcia Layton Turner

Of all the topics among hospitality industry attorneys, mixed-use developments and their complexities appear to be among the hottest issues, according to members of an NYU Hospitality Industry Investment Conference panel called "Hospitality Legal Eagles." The conference is scheduled for June 3-5 at New York's Marriot Marquis Hotel.

Key players responsible for helping reshape design in the hotel industry are lined up to present the latest and greatest in their niche markets at the upcoming 29th annual New York University Hospitality Industry Investment Conference June 3-5 at the Marriott Marquis in New York.

NATIONAL REPORT—The imbalance of above-average demand and minimal new hotel supply has been good to the hotel industry—very good. But with dynamics changing, it's time to elevate construction activity on your list of concerns, according to Mark Woodworth, president of PKF Hospitality Research.

LAKEWOOD, N.J.—David Lichtenstein knows the lodging industry isn't for everybody. But the right opportunity at the right time can make a big difference. Lichtenstein, c.e.o. of Lakewood, N.J.-based Lightstone Group, found the right deal in April when he agreed to buy Extended Stay Hotels from The Blackstone Group for $8 billion.

PALM BEACH, FLA.—The hotel industry continues to retreat from the public arena, as demonstrated by the planned acquisition of hotel real-estate investment trust Innkeepers USA Trust by Apollo Investment Corp. The deal, valued at $17.75 per share (about $800 million), was announced in mid-April. The deal is expected to close by the end of the second quarter.

LasVegas—At the helm of the world's second largest hotel and casino company, J. Terrence Lanni, chairman and c.e.o. of MGM Mirage, has a big vision for Las Vegas and markets around the globe.

Orlando—The news about timeshare keeps getting better.

There are two constants in hospitality: change and volatility. The hotel investment community often forgets that as the industry continues this extended run of prosperity. It is far better to take a proactive approach and brace your company and portfolio to better weather the cycle.

While the bloom has certainly come off the condo-hotel rose a little bit over the past year or so, there are still many hotel-related projects in the development pipeline with a condo component. (PDF)