Hospitality Industry Issues

Hotel Blog Post

Recently, I was able to attend the Lodging Conference in Phoenix.  Perhaps one of the best industry conferences I have had the benefit of attending.  Lenders,  investors, brokers, designers, franchise flags, management companies, owners and developers all come together to meet once a year in a relaxed atmosphere where deals for the following year are

Brad Kaplan  Hospitality Industry Practice Contact
Brad Kaplan
Hospitality Industry Practice Contact

After many years of serving the hospitality industry in various capacities, we have brought all of our skills and experiences under one roof as we have formalized our Hospitality Industry practice to serve the growing needs of our hospitality industry clients. The hospitality industry defines

Please join us for this informative webinar today.  If you can not participate you can access the webinar through our sponsor. The link is the title to the webinar.

 

Hotel Financing Structures and Options in the Hospitality Industry Upswing

Leveraging CMBS Capital Market Financing, Preferred Equity, Tax Credit Funds and EB-5 Financing

The hotel industry is in an upswing as this cyclical industry continues to heat up and is one of the most active real estate segments in today’s economy. How can counsel pave the way for hotel clients to identify and negotiate financing deals?

While financing from traditional lenders is relatively scarce, savvy industry insiders are finding additional sources of financing and are driving a new era of innovation in real estate finance. Preferred equity investments, tax credit funds and EB-5 financingare common.

Commercial mortgaged-back-securities loans, historically an important hotel financing source, came back into play in recent years. New CMBS loans are more complex and difficult to navigate than before, but can be a critical source of financing for certain deals.

Listen as our authoritative panel of real estate finance attorneys guides you through the various financing tools and sources of money available for hotel financing, including CMBS financing, tax credit funds, EB-5 financing and preferred equity investments. The panel will also address legal issues that can present financing challenges in this post-recession environment. 

Outline

  1. Pre-recession/recession
    1. Easy money
    2. Cleaning out the distressed properties and loans
  2. Current available sources of financing
    1. Private investor dollars (preferred equity)
    2. Tax credit funds (new market/historic tax credits)
    3. EB-5 financing
    4. CMBS capital market financing
  3. CMBS type loan structures and requirements
  4. Collateralizing the management and franchise agreements
    1. Comfort letters
    2. Subordinations
    3. Collateral assignments
  5. Bankruptcy remote organizational structures and covenants

Faculty

Bradley KaplanPartner
Ulmer & Berne, Cincinnati

Mr. Kaplan assists owners, operators and receivers of hotel, office and industrial properties with their real estate, finance, leasing, construction and organizational challenges; specifically, negotiating and drafting hospitality, purchase, sale, financing, leasing, construction, franchise and management agreements.  He serves as general counsel and national real estate counsel to several domestic and internationally based public and privately held companies.  

 


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It seems that old is new again !  In cities throughout the U.S. buildings originally built for a specific purpose: banks, office buildings, schools and warehouses are being converted or "re-purposed" into other uses, but in particular into restaurants and hotels.  In Cincinnati alone there are three projects undergoing renovation for their new life as