PHOENIX- Time and again, executives and brokers alike in the hotel sector of the commercial real estate industry have sheepishly cited the “wait and see” ethos that seems to be surrounding the presidential election of 2012. And why not? Two very different candidates have very different policies, and nothing will be certain until we are all presented with the concrete knowledge of who will be leading the country for the next four years.
The hotel sector is not immune to these speculations – if you recall from the NYU International Hospitality Industry Investment Conference in June, even that far from the election, people preferred to pause rather than offer solid answers about where the industry would go for the remainder of 2012. As the Lodging Conference gets under way here, Driftwood Hospitality Management’s EVP Brian Quinn offered up a bit of insight into his company’s strategy and what he expects from the event this year.
“We’re excited to get the view from the top at the conference,” he says, “Having attended in election years, we’re looking at the end to the holding pattern now.” Quinn further explains that he is “interested” to hear about other executives’ experiences this year, and what they have to say about the next. Overall, the hospitality industry is going out on a good – if not great – note; Quinn cites increased demand and solid revPAR figures as excellent indicators that things are at least on the right track.
“The fundamentals are incredibly strong,” he adds, “People are traveling and supply is coming on – slow.” He is hopeful that new building will take place in 2013 and that the markets – particularly secondary markets – will begin “heating up” in the next year as well.
Driftwood in particular isn’t a stranger to secondary markets – the properties it picked up for renovation include a Hilton at the Raleigh-Durham Airport and a Sheraton Columbus Hotel at Capitol Square in Columbus. “We’re bullish on North Carolina,” Quinn says of the first hotel property, adding that Columbus was also a strategic spot for a renovation because of the city’s capital status and the university there, among other things.
“We have tried to position in markets that have a bit of insurance,” he explains, as a way to highlight the company’s strategy – something that was enhanced by its joint venture agreement with Apollo Global Reality. “I think that a great capital partner is important in the marketplace,” he says of the partnership, “The opportunity to reposition assets, bring additional expertise and reposition, renovate and bring management expertise – we have employed that with Apollo.”
But back to the issue at hand – this week’s Lodging Conference, which conveniently coincides with the first of the presidential debates. As always at such events, many a hand is shaken, a deal is sealed and conversation promised on a future occasion. With the election looming, it will be interesting to see just what people are willing to discuss, sign and seal, or whether hotel industry professionals will just be tight-lipped – for now.
Are you going to the Lodging Conference in Phoenix this week? Follow us on Twitter for updates and check back for coverage rolling out through this week and into next.
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