Southern Lodging Summit to Host 14th Annual Conference August 16th & 17th in Memphis, Tenn.

MEMPHIS, Tenn., June 16, 2016—Officials of the Southern Lodging Summit, an annual gathering of hoteliers specializing in development and operations in the southern United States, today announced it will host its 14th annual conference August 16-17 in Memphis, Tenn. The conference will commence with the organization’s signature luncheon at the world famous Rendezvous BBQ Restaurant, offering networking opportunities with industry experts and event speakers. Among them is keynote speaker and distinguished hospitality professional, Fred Kleisner. Other conference features include a tour of the TRU by Hilton model hotel room and lobby, providing attendees a more interactive experience.

“Industry professionals and financial experts across the board agree that we are at or near peak growth and now are at a steady growth rate with modest demand and supply,” said Chuck Pinkowski, owner of Pinkowski & Company and conference co-founder. “The Southern Lodging Summit allows hospitality professionals to network and exchange ideas with other hoteliers, strengthening the fundamentals of the industry for future growth.”

The conference kicks off with its “Lunch with the Speakers” at the renowned Rendezvous Restaurant for one-on-one networking opportunities with distinguished guests and event speakers. This will be followed by a tour of a TRU-Hilton Worldwide hospitality model room and lobby. TRU by Hilton is a midscale product and part of a portfolio of 13 independent yet complementary hotel brands. It is forward-thinking and innovative, with four zones for lounging, working, eating and playing. The zones include the hive, the play zone, command center and a build-your-own breakfast area, all offering an interactive and spacious, millennial mindset design. The day will close with a “March of the Ducks” at the Peabody and an evening cocktail reception and dinner.

The following day will take place at the Memphis Cook Convention Center and will kick off its sessions with a presidents panel. Mark Carrier, senior officer of the B. F. Saul Company Hospitality Group, then will provide a legislative update for the American Hotel & Lodging Association (AH&LA). Other sessions include an outlook on future design planning, F&B trends and profitability, and an STR presentation of industry trends.

With five decades of hospitality experience, keynote speaker Fred Kleisner has worked in nearly every sector in hospitality, from individual hotels and resorts to worldwide branded hospitality companies. During his career, Kleisner has held such varied positions as chairman, president and CEO of Wyndham International and Morgans Hotel Group, president and COO of Starwood Hotels & Resorts Worldwide and Westin Hotels & Resorts, president and director of Hard Rock Holdings and director, executive committee member and treasurer of the board at the Museum of Arts and Design in New York City. He currently serves as an independent director of Caesars Entertainment Corporation and member on Aimbridge Hospitality’s board of managers.

Celebrating its 14th year, the Southern Lodging Summit was co-founded by Pinkowski & Company, an independent hotel industry consulting firm headquartered in Memphis, and Metropolitan Memphis Hotel & Lodging Association. The hospitality industry event brings together hotel professionals who target the southern and mid-south region of the United States for development and operations. The annual event draws a diverse group of owners, operators, sales executives, financial institutions, architects, attorneys, and hotel company representatives.

Hospitality Ventures Management Group (HVMG) to Manage Independent Boutique Borrego Springs Resort & Spa

ATLANTA, Ga., June 13, 2016 – Hospitality Ventures Management Group (HVMG), an Atlanta-based, private hotel management company, today announced that it had signed a management agreement to operate the 100-room and suites Borrego Springs Resort & Spa in Borrego Springs, Ca. The property recently was acquired by Borrego Nazareth LLC.

“The Borrego Springs Resort & Spa marks the sixth independent full-service hotel and second hotel in Southern California to be managed by HVMG,” said Robert S. Cole, HVMG president and CEO. “With most industry experts predicting that overall occupancy and room rates will continue to grow but at a much slower rate, the real opportunity for savvy owners at this phase of the cycle is to maximize profitability through improved operations and service delivery, aggressive and distinctive revenue management and marketing, and a laser focus on costs and margins.

“This is a singular resort offering a full range of amenities from a world-class spa to fine dining, two swimming pools, an 18-hole golf courses and six tennis courts. We believe implementing our unique and customized hotel management and marketing systems and processes will result in substantially enhanced operations and profit. We consider this resort to have excellent upside.”

Borrego Springs Resort & Spa is a full-service golf and spa resort situated in the Anza-Borrego Desert, at the foothills of the Santa Rosa Mountains, and located a short drive from Palm Springs, San Diego and Los Angeles. The resort boasts deluxe rooms with spacious bathrooms, while the suites offer living rooms, two televisions, a mini refrigerator, and microwave. Each guestroom and suite also offers outdoor seating on a private terrace or balcony with either a poolside or mountain view. As for dining options, the Arches Restaurant and Lounge offers an exceptional dining experience offering American and Southwestern inspired menu, while enjoying panoramic views of the golf course and breathtaking views.

The Spa Serenity features its own swimming pool and private cabanas. It offers a range of treatments from massages, facials, wraps and scrubs to manicures and pedicures.

Additionally, the resort caters to small to mid-sized business and social groups with more than 5,000 sq. ft. of meeting space. The versatile layout can accommodate up to 250 guests in a business meeting format and weddings and other social events of up to 150 guests.

“We believe several factors favor the outlook for increased activity in hotel acquisitions and third-party management contracts over the next several years,” Cole said. “In addition to forecasts of slowing RevPAR growth, there is a significant, multi-billion-dollar portfolio of CMBS loans coming due over the next two years. There also will be another wave of required franchisor property improvement plans. These factors will encourage some owners to sell now and harvest their returns while a new generation of owners will look for the upside that this phase of the cycle creates. This environment positions HMVG well, with expertise spanning all sectors and segments of the industry, to take full advantage of this stage of the industry cycle.”

About Hospitality Ventures Management Group

Hospitality Ventures Management Group is a privately owned, fully-integrated hotel investment and management group that specializes in turning around and repositioning underperforming hotels, as well as maximizing the performance of stabilized hotels. It currently operates 30 hotels in 14 states totaling 6,470 guest rooms. HVMG develops, owns, and operates independent and boutique hotels and resorts, as well as full-service, select-service and extended-stay hotels under the Hilton, Marriott, Hyatt, Starwood, and IHG brands. Visit www.hvmg.com for more information.

Peachtree Hotel Group Grows Portfolio with Addition of Ten Hotels

Company Places Four Hotels Under Contract and Six Under Development

ATLANTA, Ga., June 6, 2016 — Officials of Peachtree Hotel Group (PHG), one of the nation’s fastest growing hotel investment and management platforms, today announced that it is adding ten hotels to its expanding portfolio of select-service properties nationwide. Four hotels are under contract for acquisition and are expected to close within the next 60 days. The company also has six additional properties in various stages of development. PHG’s management arm will operate all ten hotels upon consummation of the transactions/openings. Aggregate investment across the ten hotels is approximately $183 million.

“Although the outlook for the hotel industry is positive over the next several years, we’re seeing more motivated owners selling both non-core and assets requiring significant capital reinvestment due to the recent volatility in the capital markets coupled with tightening debt markets.,” said Brian Waldman, senior vice president of investments. “With RevPAR at or near its peak, we continue to be very selective about the opportunities we pursue and target hotels that can benefit from either improved management or are in need of capital investments. This plays well to our strengths as both owners and operators.”

“This scenario creates opportunities for savvy owner/operators,” he noted. “Although transaction levels were low in the first quarter, we anticipate an increase in acquisition volume through both on and off market deals. Impacting transaction volume will be a major wave of PIPs on the near horizon and billions of dollars of CMBS loans coming due in the next few years. We have considerable ‘dry powder’ to continue to acquire both individual properties and portfolios, as well as for development.”

The four properties under contract for acquisition, representing nearly 600 rooms, include two Hampton Inns, an aloft and a Doubletree conversion opportunity. Geographically, the investment footprint spans from the Southeast to the Midwest.

The five hotels under development represent nearly 700 rooms across four states and include Marriott, Hilton, IHG and Starwood brand affiliations.

“Our prolific pipeline is a testament to our platform of aggressive, but prudent, expansion in select-service hotels within secondary and tertiary markets,” said Jatin Desai, chief investment officer. “We continue to seek hotels that can benefit from strategic cash infusions and/or better operating practices, as well as development opportunities in markets with multiple demand generators, limited new supply and a positive business environment.”

“To support our aggressive growth plans, we have added greater depth to our bench on the operations and finance sides,” said Greg Friedman, chief executive officer. “We will continue to scale our platform to provide superior services for our investors, guests and team members as we expand.”

About Peachtree Hotel Group

Peachtree Hotel Group operates, develops and invests in premium-branded, select- and limited-service and extended-stay hotel assets under the Marriott, Starwood, Hilton, Hyatt, Choice and InterContinental Hotels Group flags. Since its inception, Peachtree has acquired, developed or originated more than $965 million of hotel properties and first mortgage notes. Peachtree’s current portfolio is comprised of 65 hotel assets totaling 6,672 rooms, including 27 real estate assets and 38 notes. For more information, please visit www.peachtreehotelgroup.com.

U.S. HOTELIERS ON ALERT AFTER FIRST QUARTER OCCUPANCY DECLINE

U.S. Lodging Market Forecast To Grow, But At Slower Pace
Atlanta – June 6, 2016 – The U.S. hotel market suffered a 0.5 percent decline in occupancy during the first quarter of 2016. This is the first year-over-year decline in occupancy since the fourth quarter of 2009 according to STR.

Based upon the recently released June 2016 edition of Hotel Horizons®, the annual occupancy rate for U.S. hotels is forecast to decline in both 2016 and 2017, the result of supply increases outpacing growth in demand. U.S. occupancy levels will persist above the 65 percent mark, thus providing pricing leverage for hotel operators. For 2016, average daily room rates (ADR) are projected to increase by 4.3 percent, followed by a 4.9 boost in 2017. The gains in ADR will offset the declines in occupancy, thus resulting in revenue (RevPAR) gains of 4.2 and 4.7 percent the next two years.

“The first quarter decline in occupancy is a concern for U.S. hotel owners and operators,” said R. Mark Woodworth, senior managing director of CBRE Hotels’ Americas Research. “The industry has been on a good run for the past five years, and there were no obvious economic warning signs foreshadowing a decline in occupancy. That being said, the slight pull-back from the record occupancy level achieved in 2015 is not particularly surprising.”

The cause of the decline in occupancy was a 1.5 percent increase in supply, accompanied by an increase in demand of just 1.0 percent. “It is important to note that U.S. lodging demand did grow during the first quarter of 2016. While ADR increases are starting to mute demand growth, the economy remains healthy and will generate increases in lodging demand for the foreseeable future. We are simply at that point in the cycle when supply growth is outstripping demand,” Woodworth noted.

“Compared to the 6.0 to 8.0 percent annual increases in RevPAR the industry has enjoyed the past five years, our forecasts of RevPAR growth for the next two years seem quite modest. However, we are still projecting growth in RevPAR, and in real terms, revenue gains will occur at more than twice the pace of inflation,” Woodworth added.

Deceleration

“Lodging is a cyclical industry. The pace of RevPAR growth seen during the recovery phase of the cycle cannot be sustained forever,” said John B. (Jack) Corgel, Ph.D., professor of real estate at the Cornell University School of Hotel Administration and senior advisor to CBRE Hotels’ Americas Research. “The deceleration in RevPAR growth is a natural economic occurrence as the market operates at the top of the cycle.”

Concurrent with the deceleration of industry performance, CBRE Hotels’ Americas Research has adjusted its forecast for 2016 downward. The current RevPAR change forecast of 4.2 percent for 2016 is down 130 basis points from our March 2016 projections. Half of the reduced forecast can be attributed to the contraction that has already taken place during the first quarter, while the remaining adjustment was triggered by the persistence of low inflation.

“Given the outlook for business and consumer expenditures throughout the remainder of the year, our projections for demand growth during the final three quarters actually are slightly greater than what we were envisaging three months ago,” Corgel stated. “What has changed is our outlook for ADR. Low inflation, new competition in select markets, and enhanced consumer empowerment created by technology and the sharing economy have contributed to a reduction in our forecast for ADR.”

Natural Supply

After achieving all-time record levels of occupancy, the industry is attracting the attention of developers who have been sitting on the sidelines for an extended period of time. The latest edition of Hotel Horizons® forecasts the nationwide supply growth rate will surpass the long-run annual average rate of 1.9 percent in 2017.

The declines in occupancy that are contributing to the deceleration cleary are attributable to changes in supply. The five U.S. lodging markets forecast to see the greatest declines in occupancy in 2016 simultaneously will average a 6.3 percent increase in supply during the year. Concurrently, upscale hotels are forecast to experience the greatest decline in occupancy among all the chain-scales primarily because of the 5.3 percent increase in competitive rooms.

“Supply growth is occurring, but our projections do not approach the historical levels of new construction activity observed in the late 1980s, 1990s and 2000s. We do not foresee a supply-driven industry downturn,” Woodworth predicted.

“The industry has passed the uphill recovery phase of the cycle, and we are now in a prolonged period at the top. Looking forward two to three years, we do not see any reason why U.S. hotels should not continue to enjoy gains on both the top and bottom lines, albeit at a more modest pace compared to the past two or three years,” Woodworth concluded.

To purchase copies of the June 2016 editions of Hotel Horizons® for the U.S. lodging industry and 60 major markets, please visit: https://pip.cbrehotels.com

CBRE Hotels is a specialized advisory group within CBRE providing brokerage, valuation, consulting, research and capital markets services to companies in the hotel sector. CBRE Hotels is comprised of more than 375 dedicated hospitality professionals located in 60 offices across the globe.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.

WoodSpring Suites Breaks Ground on New Hotel in Seattle, Washington MSA

Everett, Wash., June 6, 2016 — WoodSpring Hotels, the nation’s fastest-growing extended-stay hotel company has partnered with West77 to build the first WoodSpring Suites hotel in Everett, Washington. The property, which will be located at 7707 Broadway Everett, WA 98203, marks the first of up to 25 hotels to be developed by West77 across the state of Washington.

“West77 is excited to introduce our first hospitality-focused real estate investment to Everett, Washington,” said Mike Nielson, Principal at West77. “We’re looking forward to bringing more WoodSpring hotels to the greater Pacific Northwest and introducing the brand to a new customer base.”
The projected opening date for the hotel is December 2016 and will be located 30 minutes north of Seattle. Once completed, the new four-story, 122-room hotel will feature such guest amenities as laundry facilities, modified kitchens, fitness center, high-speed internet, and the cleanliness, safety, and affordability that the WoodSpring Suites brand provides to every guest.

“Partnering with West77 is a great opportunity for us to expand our footprint as we look to aggressively grow the WoodSpring brand,” said Ron Burgett, Executive Vice President of Franchise Development & Operations at WoodSpring Hotels. “We are excited to bring a new value extended stay hotel concept to the state of Washington and believe our affordable rates and high quality will appeal to many travelers in this area.”

About WoodSpring Hotels
WoodSpring Hotels is the company behind the nation’s fastest growing value extended stay hotel brand with over 200 hotels system-wide located in 30 states. The company owns 90 hotels and provides management services for both company-owned and franchised locations under the WoodSpring Suites and Value Place brands. WoodSpring Suites, as well as its enhanced brand extension, WoodSpring Suites Signature, are hotels for good people with practical needs, down-to-earth attitudes and a comfortable style, and who appreciate the value of life’s necessities – done really well. For more information, visit www.WoodSpringFranchise.com.