|
|
|
|
Banks & Investors Becoming Un-Easy With Certain Hoteliers January 2007 In the first month of 2007 we have seen a couple of the Hotel groups enter the market as sellers, private investors sell their stakes in the freehold interest of hotel groups, due to the inability of the owners and their management to be able to met growth targets and added value to the hotel portfolios. In most cases the groups in question have grown very dramatically and in certain cases have reported in a manner with forecasting and the like using industry averages from outside their specific markets, such as growth in gaming and bottle sales based on western suburbs averages when their hotels are located on the lower north shore or eastern suburbs. It is known on the public record that a number of these groups have been encouraged into the market by their financial institutions, while the institution is happy to hold the portfolio but not under the current management or ownership resigme. This also holds true with sales in the later part of last year of landmark venues such as the Steyne Hotel at Manly. In basic terms it is an excuse buyers will use to minimise prices paid for hotels saying that "shock waves" are being sent through the industry, yet it only reflects less than a handful of recently formed groups, rationalising their portfolios. Banks and other lenders are still as keen as mustard to be involved in funding acquisitions in the Hotel industry should participants have adequate industry experience and they see conservative paths for growth. Bligh Williams |
|
Send mail to
bligh@jtw.com.au with
questions or comments about this web site.
|