Meet the Money 2023 Special Presentation #3: ISHC’s CapEx Report and the California Hotel Market
JMBM’s Global Hospitality Group® recently hosted the 30th edition of Meet the Money® national hotel conference. Alongside investment boot camps and insightful discussion panels, the conference featured several exciting special presentations interpreting the latest data and industry sector highlights. In Part 3 of this blog series, we highlight the special presentations given by Warren G. Feldman and Alan X. Reay.
Warren G. Feldman, CEO of Nehmer, began the second day of special presentations with a preview of the International Society of Hospitality Consultants (ISHC)’s CapEx study on the total capital costs of owning hotels. Feldman is an ISHC member who worked on the fourth revision of the ISHC study, which analyzed hotel industry revenue from the year 2000 to the present day, and compared proportions of capital spending and repairs & maintenance for each.
The report broke down capital expenditure as a percentage of total revenue by different hotel segments, including full-service, select-service and extended-stay.
It also offered a look at capital expenditure by location.
You can download the full presentation here.
Alan X. Reay, President of Atlas Hospitality, followed Feldman’s presentation with a look at the hotel market in California. He began by analyzing last year’s hotel sales, which included the 2nd highest number of individual hotel sales on record, and offered a glimpse into 2023. He noted that first quarter sales are down 61% and things are on track for the worst year since 2009.
Reay offered some explanations for this poor market performance, including increased borrowing costs.
He went on to compare California’s market to the largest U.S. commercial property market, New York, where sales are also down.
You can download the full presentation here.
Meet the Money Special Presentations
- See Part 1 of our presentation summaries here.
- See Part 2 of our presentation summaries here.
- See Part 3 of our presentation summaries here.
- See Part 4 of our presentation summaries here.
About Meet the Money®
For 30 years, Meet the Money® has created an energetic environment to forge relationships, negotiate deals, and gain an in-depth understanding of hotel investment and finance. Our national hotel conference attracts heavy hitters and offers an opportunity for productive, one-on-one networking with them.
We’re looking forward to hosting the conference again in 2024. Mark your calendars – Meet the Money® 2024 will be held on May 6-8, 2024. For updates and more information, visit www.MeetTheMoney.com.
*See how JMBM’s Global Hospitality Group® can help you.
About the JMBM Global Hospitality Group®
The hospitality attorneys in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP comprise the premier hospitality practice in a full-service law firm, and the most experienced legal and advisory team in the industry. Our team of seasoned hotel lawyers has helped clients with more than 4,600 hospitality properties located around the globe valued at more than $123 billion, and have worked on more than 2,700 management and franchise agreements. Our experience provides one of the most extensive virtual data bases of market terms for deals and financings. The hospitality lawyers of our team are not just great hotel lawyers—we are also hospitality consultants and business advisors, dealmakers and facilitators of the flow of capital. We help our clients find the right operator, joint venture partner or capital provider. We know who to call and how to reach them.
Jim Butler
+1 310 201 3526
JMBM
