Remington Capital – Brad Sweet

This week I was reading in MBA Newslink about the upswing in hotel deals. The good news is that it can’t get worse!

At Remington we have continued the transaction flow in the hotel segment, and we look forward to working with brokers to continue funding viable hotel investment opportunities.

Hotel deals reached their lowest point in 2009, and now experts forecast an increase of $3.5 billion in 2010 as owners are being forced to recapitalize assets and significant equity is entering the market. Seller financing and private money will hold the stage in 2010. Read more here.  http://www.mortgagebankers.org/tools/FullStory.aspx?ArticleId=10503

At Remington www.remingtonfg.com we are focused on financing hospitality and other commercial real estate transactions, and we forecast a continued improvement in our ability to support brokers with hotel owners – both distressed and new.  Let’s talk about new opportunities built off financing funds that we need to deploy this quarter.

Thank you!  Brad Sweet – Remington

It was refreshing to read some good news this week in Michael Murray’s article for Mortgage Bankers newsletter regarding the hospitality sector. We’re in for a little better year in 2010.  Among the forecasts:

1. Global hotel transaction volume will increase by 20 percent to 40 percent, or up to nearly $4 billion by next year, said Jones Lang LaSalle Hotels, London.
2. In its Hotel Investment Outlook 2010 report, JLL Hotels forecast the first increase in transaction activity since 2007, following a 64 percent decline predicted for this year.
3. “Asian conglomerates are poised to emerge as one of the primary global acquisition groups in 2010 as they seek prime assets in gateway markets, especially in the United States and United Kingdom, playing to currency fluctuations,” de Haast of JLL Hotels said. “Furthermore, sovereign wealth funds, primarily from the Middle East but also Asia, will aim to place capital in hotels as a hedge against inflation, and will therefore become more active buyers again.”
4. The focus for investors, de Haast said, will be three or more months of consecutive year-over-year room yield growth as a sign of stabilization to “underpin valuations and boost confidence” as hotel recovery varies based on world geography.
5. “Savvy buyers who are in a strong cash position and can be aggressive will be able to benefit from the buying opportunities that emerge,” de Haast said. “Overall, bids will continue to be conservative in 2010, but the early movers stand to capture the most value.”

Read more here: http://www.mortgagebankers.org/tools/FullStory.aspx?ArticleId=9759#full

If you’d like to discuss how we can help arrange commercial financing in hospitality or other sectors, please contact me today. Thank you – Brad Sweet, Remington