Lodging Real Estate Finance: Securitization

Commercial Mortgage Backed Securities (CMBSs) introduced to the U.S. lodging industry in the early 1990’s were a panacea during a period of severe shortage of debt capital. These instruments changed commercial real estate capital markets by providing flexibility and liquidity to an otherwise illiquid investment As a relatively new form of financing to the lodging industry, the mechanics of securitization, the types of CMBS investments, and their structure are not well understood. The article illustrates the process of securitization and its importance as a significant source of debt financing to the lodging industr

Events Impacting Lodging Capital Flow

By reviewing events in the last quarter of the 20th century that have impacted the amount and type of lodging industry financing, the author analyzes these historical trends and major events to alert lodging industry investors, lenders, legislators, and hotel operators when similar events emerge in the futur

Securitization of Lodging Real Estate Finance

In the early 1990s, the U.S. lodging industry witnessed a severe shortage of debt capital as traditional lenders exited the market. During this period hotel lending was revolutionized by the emergence of real estate debt securities. The author discusses key factors which have affected the growth and development of commercial mortgage backed securities and their changing role as a significant source of debt capital to the lodging industry

Predicting Financial Sources for the Lodging Industry

Given the various changes that have occurred in the financing of the lodging industry, investors and developers interested in the industry are concerned about future sources of capital and the terms at which they will be available. This article presents results of a Delphi study which illustrates the extent to which individual financial institutions are expected to provide capital to the lodging industry and looks at terms and criteria used to make loans

Impact of Light, Medium and Heavy Spenders on Casino Destinations: Segmenting Gaming Visitors Based on Amount of Non-gaming Expenditures

This article discusses the viability of targeting heavy spenders on non-gaming products and services in gaming travel marketing. A sample of visitors to two commercial casinos was divided into light, medium and heavy spenders based on spending per person per day, excluding gambling. Findings indicated that a large number of heavy-spending tourists were not interested in gaming, but in the destination\u27s other tourism products. This suggests that the region\u27s tourism assets play an important role in enhancing casino visitation. Promoting the casino as part of the overall tourism attractions may benefit both the casino and related businesses in the community

Teleconferencing Technology: Recent Development and Implications for Hotel Industry

Even though the popularity and usage of teleconferencing is evident primarily outside the lodging industry, lodging operators cannot choose to ifnore the role teleconferencing will play in meeting the changing needs of guests. The authors discuss the factors that spurred the growth of teleconferencing, the opportunities and threats faced by lodging operators, and suggestions for taking advantage of the technology

Does Financial Performance Depend on Hotel Size? Analysis of the Financial Profile of the U.S. Lodging Industry

This research presents a financial profile of the U.S. Lodging Industry based on an analysis of 2,091 financial statements (fiscal year 2011) for individual hotels ranging in asset size of $500 thousand to$250 million. The study analyzes summary results of the financial position and profitability of hotels based on a common size analysis of Balance Sheets and Income Statements. Furthermore, the study analyzes 10 key performance benchmarks as measured by Liquidity, Solvency and Operating Ratios. The results of the study show a divergence in the hotel industry’s financial performance based on the size of the hotel and by upper, median and lower quartiles of the study sample

The International Hotel Industry in the New Millennium

The top priorities of 170 hotel managers from 25 countries were identified as human capital, understanding customers, use of capital, alignment of stakeholder interests, use of information technology, and valuing brands in a Cornell University study.\u27 The authors discuss how managers in a hotel\u27s functional departments are ultimately responsible for addressing each of these concerns and issues