Hotel Markets Coming into Balance As Demand and Supply Growth Rates Converge

U.S. Hoteliers Operate in a Low Inflation Environment

Atlanta – September 7, 2016 – The magnitude of change in the major industry indicators is not pleasing U.S. hotel owners and operators. New development activity continues to accelerate, while growth in average daily room rates (ADR) has decelerated. The sluggish start during the first half of the year resulted in another downgrade by CBRE Hotels’ Americas Research of its forecast for the entirety of 2016.

“It has been very interesting dissecting the performance of the U.S. lodging industry during the first half of 2016,” said R. Mark Woodworth, senior managing director of CBRE Hotels’ Americas Research. “On the one hand, we are comforted by the continual growth in accommodated demand. After all, if people stop traveling, nothing else really matters. On the other hand, there continues to be a disconnect between the record occupancy levels and the inability of hoteliers to increase room rates.”

According to STR, U.S. lodging demand increased by 1.6 percent during the first half of 2016 compared to the first half of 2015. At the same time, hotel rooms supply rose by just 1.5 percent, resulting in a 0.1 percent boost to occupancy. With demand and occupancy on the rise, ADRs did increase by 3.1 percent, but this is less than the 4.1 percent pace seen during the first half of 2015 and the annual 2015 growth rate of 4.4 percent.

Based on the first half performance data, CBRE Hotels’ Americas Research adjusted its forecast for the year 2016. According to the firm’s September 2016 Hotel Horizons® forecast that was released at the STR Hotel Data Conference, U.S. hotels will enjoy a 0.1 percent increase in occupancy for the year, concurrent with a 3.5 percent rise in ADR. This results in a RevPAR gain of 3.6 percent. The occupancy forecast represents an improvement over the 0.1 percent decline presented in June 2016 edition of Hotel Horizons®, but the ADR and RevPAR forecast rates are 0.8 and 0.6 percentage points less, respectively.

The Reality of ADR

“Because changes in ADR have an over-weighted impact on profits, it is the metric most closely monitored by owners and operators. That is why everyone is disappointed with a reduction in the outlook for changes in ADR, especially with such high occupancy levels,” Woodworth said. “We have developed some thoughts as to why room rates are growing as they are. Some are very obvious. Others require deeper analysis.”

An analysis of ADR growth within each of the 60 markets in the Hotel Horizons® universe finds a fairly consistent relationship between changes in supply and changes in ADR during 2016. On average, the 25 markets projected to experience a supply increase greater than two percent are forecast to achieve an ADR rise of 2.2 percent. Conversely, the remaining 35 markets should enjoy an average ADR gain of 4.1 percent. The two percent mark was chosen because that is the long-run average annual change in supply for U.S. hotels. “When hotel sales and revenue managers look out the window and see construction cranes, they are reluctant to be too aggressive with their pricing policies,” Woodworth noted.

“When analyzing prices in any industry, it is common to gauge movements relative to the pace of inflation, or real change,” 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. “In real terms, the 3.5 percent nominal increase in ADR forecast for 2016 represents a 2.5 percent real change. This will be the eighth greatest real change in ADR since 1988.”

The Real Problem

“One reason we analyze real changes in prices is because the pace of inflation is typically a good proxy for changes in operating expenses,” said Corgel. “Unfortunately for U.S. hoteliers, we are starting to see a divergence between changes in inflation and changes in hotel operating costs.” According to the 2016 edition of CBRE’s Trends® in the Hotel Industry, hotel operating expenses increased by 4.7 percent in 2015. Given the 0.1 percent rise in the Consumer Price Index (CPI) for the year, this equates to a real expense change of 4.6 percent. The 4.6 percent mark is the greatest real change in expenses recorded by CBRE since 1978.

Two of the components keeping the CPI low are food costs and energy prices. Fortunately for hoteliers, these two costs declined 3.5 and 2.7 percent respectively in 2015. Conversations with hotel controllers indicate that these trends have continued into 2016.

While hotels are benefiting from declines in food cost and utility expenses, there are some expenses that are not directly tied to inflation that are cutting into hotel profitability. “Management fees, franchise fees and credit card commissions are all influenced heavily by changes in revenue. Therefore, with revenue growing, it is not surprising to see these costs growing from five to seven percent,” Corgel noted. “What is somewhat contrary to historical economics is the rising cost of hotel labor in such a low inflation environment.”

In 2015, hotel labor costs grew by 4.6 percent, the result of a 5.2 percent increase in salaries and wages and a 3.0 percent rise in employee benefits. “Increases in hospitality labor compensation primarily are attributable to the continued decline in the nation’s unemployment rate. With the unemployment rate expected to remain low, this will continue to put pressure on hotels to increase wage rates in an effort to remain competitive with other industries,” Corgel noted. “While hotels are enjoying significant real change in revenues, the realities of hotel expense growth represent a strong headwind against significant gains on the bottom-line.”

“We understand why hotel owners and operators are disappointed by the downgrade to our forecasts following a slow start to the year. Life at the top of the business cycle is characterized by moderate changes in performance. Through it all, it is important to note that we are forecasting continued, less volatile revenue and profit increases for the foreseeable future. That is not a bad combination,” Woodworth concluded.

To purchase copies of the September 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.

John Edwards Joins Hospitality Ventures Management Group (HVMG) As Vice President

New Position Adds Leadership to Support Development and Renovation Projects

ATLANTA, Ga. (September 1, 2016) – Hospitality Ventures Management Group (HVMG), an Atlanta-based, private hotel management company, today announced that John Edwards has joined the company as vice president of design and construction. In his newly created role, Edwards will work closely with the business development team, as well as brand and investor partners, to oversee new development and renovation projects. He also will be responsible for capital expense planning for the company’s owned and managed portfolio.

“Smart development, repositioning and renovation programs requires deep experience and expertise to create a hotel product that differentiates the property from its competitive set, control costs, and attract guests,” said Robert S. Cole, HVMG president and CEO. “We welcome John to the team during an unprecedented growth period at HVMG, with 2016 proving to be our most successful year since the company’s inception. His timely addition will serve us well as we transition into the second half of the year as we expect to add half a dozen properties to our portfolio and manage over $250M in new construction and capital projects.”

Edwards brings nearly 40 years of experience in hospitality and commercial real estate development, design and construction. For the last 15 years, his career consisted of senior management and project development roles with such prestigious companies as Omni Hotels & Resorts, Gaylord Hotels and Las Vegas Sands Corp. John is an architect by training and he has also held senior positions with such notable companies as RTKL Associates, Lodging & Hospitality Systems Group and Thompson, Ventulett, Stainback & Associates. He successfully led projects that included pre-development, pre-acquisition due diligence, programming, master planning and rezoning, as well as the procurement and management of design and engineering consultants and general contractors. He has worked on a broad range of hospitality projects that include resorts, convention hotels as well as spas and fitness centers. In addition to his hospitality experience, John has experience designing and developing luxury residential, retail, and commercial office buildings. Edwards holds undergraduate and graduate degrees in Architecture from Clemson University.

“Teaming up my expertise in hospitality development, design and construction with HVMG’s proven expertise in operations, revenue generation, and marketing systems will strongly position the properties under construction and renovation to realize their full potential,” Edwards said. “I look forward to working with the team to enhance operations, manage capital expenses and maximize profits, ultimately helping our properties to prosper and create value for our partners across all phases 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 35 hotels in 16 states totaling 7,572 guest rooms. HVMG 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.

Second Annual “State-of-the-Industry” Report at Southern Lodging Summit Finds More than 60 Percent of Attendees Expect 2016 Rate and Occupancy to Outpace 2015

Record 14th Annual Southern Lodging Summit Attendance Remains Upbeat

MEMPHIS, Tenn., September 1, 2016— Officials of the Southern Lodging Summit, an annual gathering of hoteliers specializing in development and operations in the southern United States, today announced that the event achieved record attendance. Additionally, the organization released the results of its second annual “State-of-the-Industry” report compiled from attendees’ opinions. Participants were queried on such topics as to which presidential nominee would likely have the “best” impact on the industry, social media, Millennial travelers and which recent issues have had the largest impact on the hospitality industry.

“With most industry prognosticators believing we are near or at the top of this phase of the current hospitality cycle, hoteliers are eager to learn how they can make the most out of the current economic environment for their hotels,” said Chuck Pinkowski, president of Pinkowski & Company and conference co-founder. “We believe the continued upbeat outlook has positively impacted attendance, with record numbers achieved at all of our scheduled events. Our combination of networking events and our distinctive panels that include content unique to our sector of the country have struck a chord with attendees. The bar for 2017 has been set that much higher.”

The “State-of-the-Industry” Report shed some interesting light on a variety of topics. Nearly 64 percent of respondents believe that Donald Trump could be better for the hotel industry, though the question was not intended to necessarily endorse any nominee. Minimum wage levels and the new overtime ruling were viewed equally (29 percent) as the two recent issues that have most dramatically impacted the industry of late. Presumably of great relief to newer brands targeted towards younger travelers, 44 percent of attendees felt lobbies were the most important improvement/renovation a hotel could make to attract Millennials. Perhaps most importantly, 69 percent and 61 percent respectively reported the belief that rate and occupancy will outpace 2015 levels. Full results of the poll are available at the SLS website: http://www.southernlodgingsummit-memphis.com/.

The day-and-a-half conference, held at the Memphis Cook Convention Center, began with its annual “Lunch with Speakers” at the world renowned Rendezvous BBQ Restaurant and evening cocktail party/dinner at the Peabody Hotel before a full schedule that included industry updates and outlooks from STR’s Jan Freitag, senior vice president of strategic development.

Additional panels included The Presidents’ Panel, moderated by Isaac Collazo, vice president of performance strategy and planning for Intercontinental Hotels, and featuring Alex Cabanas, Benchmark Hospitality International CEO; Mark Carrier, BF Saul Company Hospitality Group president; John Hamilton, Pyramid Hotel Group senior vice-president of business development; and Bhavesh Patel, ADM Hotels principal and AAHOA vice-chairman. Introduced by John J. Koshivos, vice president/managing director development for the southeastern region for Hilton Worldwide, Fred Kleisner, Caesars Entertainment/Aimbridge Hospitality independent director, gave this year’s keynote address. Stephanie Ricca, editor-in-chief at Hotel News Now, led a lively discussion during the “Money, Mindset & Marketing” panel, while Larry Spelts, vice-president of business development for Charlestowne Hotels, Inc., hosted “Leading the Market! Staying Ahead of the Dining Curve” panel featuring Bob Puccini, CEO and founder of Puccini Group; Michael Kitchen, vice-president of acquisitions & development at Aparium Hotel Group; Andrew Leber, senior vice president of asset management at CHMWarnick; and Peter Karpinski, co-founder and COO of Sage Restaurant Group.

Celebrating its 14th year, the Southern Lodging Summit was co-founded by Pinkowski & Company, an independent, Memphis-headquartered hotel industry consulting firm, and the 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 from more than 22 states nationwide.

WoodSpring Suites Plans New Franchised Location in the Detroit MSA

Detroit, Mich., August 22, 2016 – WoodSpring Hotels, the nation’s fast growing extended stay hotel brand has partnered with M2B2, LLC to build a new prototype WoodSpring Suites hotel in Wixom, Michigan. The property will be located between Grand River Avenue and Highway 96 near South Wixom Avenue. This new franchised location is the first of three that M2B2 plans to build in the region.

“When we first approached WoodSpring Hotels to explore building hotels in the Michigan area our intention was to build Value Place hotels. Our diverse development group with strong experience in property development were very impressed with the operational efficiencies and very healthy NOI of the brand. It was during our site location process that WoodSpring Hotels announced the new WoodSpring Suites prototype. After seeing what WoodSpring had planned and learning about how much research and effort they put into their new strategy we could not be more excited about the company’s new direction and what we think might be the best opportunity in the lodging industry,” said Mike Huszti, Managing Partner of M2B2. “The support we have received from WoodSpring Hotels throughout the process has been exceptional and we have seen firsthand the way the company treats and values its franchisee partners”.

The projected opening date for the hotel is Q4 of 2018. Once completed, the new four-story, 122-room hotel will feature many guest amenities, such as in-room kitchens, free high-speed internet, guest laundry and the 99-point cleaning process that the WoodSpring Suites brand provides to every guest.

“It’s always important for us to not only select the right locations but we also carefully choose the right franchise partners. In M2B2, we are gaining an excellent partner that meets both of these criteria. We’re excited to welcome another top quality development group to our franchises base,” said Ron Burgett, Executive Vice President of Franchise Development & Operations for WoodSpring Hotels. “The upper midwest has proven to be an area of high guest demand for our brands and we have aggressive growth plans with both corporate and franchised properties in the region.”

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 over 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 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.WoodSpring.com.

Solid Rock Group Leads Acquisition of Two Hotels

Company Provides Advisory Services in Acquisition of The Anza and Courtyard Atlanta Airport West

IRVING, Texas/LOS ANGELES, Calif./ATLANTA, Ga., August 22, 2016—Officials of Solid Rock Group, an investment and advisory firm focused on the hospitality, healthcare and media sectors, today announced that it successfully led the acquisition, in separate transactions, of the 122-room Anza boutique hotel and the 128-room Courtyard Atlanta Airport West on behalf of a private investment group for an undisclosed sum. Solid Rock also has been retained to provide on-going advisory and asset management services for the two properties on behalf of ownership. The deals were brokered by Eastdil Secured, LLC, and Hunter Hotel Advisors, respectively.

“Our institutional investors, high net worth family offices and sovereign fund clients are seeking highly experienced advisors in this phase of the hotel real estate cycle,” said Charlie Muller, who recently joined Solid Rock as a principal and managing director of its Dallas office. “While the outlook for the hotel industry remains positive over the next few years, there are a number of unknowns, such as moderating RevPAR growth, BREXIT and the upcoming presidential election, that can impact investor sentiment of the industry. Investors seek acquisition candidates that have strong upside, as well as the ability to withstand an economic downturn. As a result, we have seen a significant uptick in the need for acquisition and asset management advisory services.

“With these two hotels, we have advised on more than $675 million of hotel transactions year-to-date and are actively engaged in negotiations on behalf of investors for an additional $510 million,” he noted. “Due to our long-standing relationships with hotel owners, operators, investors and brokers, we are able to move quickly to identify, negotiate and close on both on and off-market transactions.” With more than 100 combined years of hospitality expertise by its principals, Greg Rice, Salim Damji and Charlie Muller, Solid Rock assists owners and investors by identifying acquisition candidates that not only reflect the buyer’s investment strategies, but that also take into consideration potential debt negotiations, flag and management company selection, operations oversight and exit strategies that maximize return on investment.

“Our clients continue to have a healthy appetite for hotels in the top 50 MSAs,” Muller added. “Concurrently, they seek advisory services to acquire existing or develop new properties and execute plans to optimize value, both near term and long term.”
The Anza

Located at 23627 Calabasas Road in Calabasas, Calif., one of L.A.’s most affluent suburbs, the upscale, boutique hotel is surrounded by numerous dining, retail and business office outlets and adjacent to the 101 Ventura Freeway. Demand generators include the 215,000 square-foot Commons at Calabasas, a regional lifestyle center and entertainment destination, and the Warner Center Office Concentration in neighboring Woodland Hills, the corporate and commercial hub of the San Fernando Valley.

Guest rooms feature upscale furnishings, complimentary wireless Internet access, spacious bathroom with walk-in shower and rain shower head, microwave, refrigerator and coffeemaker. Hotel amenities include the Graze Bistro & Bar, heated pool, 24-hour fitness center, state-of-the-art business center and access to 1,000 square feet of private meeting space able to accommodate up to 50 people.
“Through our long-standing relationships with national, regional and local banks, we negotiated a long-term loan for the hotel with historically attractive rates, which will enhance returns,” Muller commented. “This property is located in an impossible-to-replicate location in the southwestern San Fernando Valley. Our analysis of the property revealed it will benefit from strategic capital improvements, enhanced asset management and greater focus on marketing and operating margin control.” The improvements are expected to commence in the fourth quarter with a targeted completion date of the second quarter 2017.

Courtyard Atlanta Airport West
Situated three miles from Hartsfield-Jackson International Airport, the Courtyard Atlanta Airport West is just a 10-minute drive from downtown Atlanta. Across the street from the more than 1.2 million square feet of premium retail space Camp Creek Marketplace, the hotel is situated within Camp Creek Pointe, at the entrance of Camp Creek Business Center an industrial development of four million square feet of developed space.

The four-story hotel features a recently renovated lobby and guest rooms, the Courtyard Bistro & Bar, 24-hour fitness center, 24-hour business center, outdoor pool and complimentary wireless and parking. Additionally, the Courtyard provides nearly 2,000 square feet of meeting space that can accommodate up to 150 people.

“We are working with our new management company to implement an effective capital expenditure plan,” Muller said. “The hotel will be in ‘like new’ condition in the near future, creating an opportunity for upside. The Atlanta airport submarket is strong, and the hotel’s close access to downtown Atlanta gives us greater demand generators, positioning the hotel well in all phases of the real estate cycle.”

About Solid Rock Group
Founded in 1991 by 45-year real estate veteran Greg Rice, Solid Rock Group is an investment advisory and asset management firm that serves the hotels/resorts, healthcare and media sectors. Its hospitality practice specializes in providing advisory services to third-party clients that do not have the desire to create the high-level infrastructure required. Solid Rock’s extensive experience in acquisitions, development, asset management, consulting, brokerage and financing has involved more than 200 properties and $8.25 billion of market value over the past 25 years. Solid Rock Group has offices in New York, Dallas, Denver, Santa Barbara and Honolulu. Please visit www.solidrockgroup.com for additional information.

WoodSpring Hotels Completes $275,000,000 Portfolio Refinancing with J.P. Morgan

Wichita, Kan., August 11, 2016 – WoodSpring Hotels today announced they have secured $275 million to refinance a portfolio of their WoodSpring Suites extended stay hotels. The diversified portfolio contains properties located across 20 states, including many of the fastest growing lodging markets in the country. J.P. Morgan provided the five-year floating-rate loan to WoodSpring Hotels.

“This financing, along with our private equity sponsorship, demonstrates the significant institutional interest in WoodSpring Hotels,” said Kyle Rogg, Chief Financial Officer for WoodSpring Hotels. “Our properties’ high margins and stable cash flows make them particularly attractive to lenders.”

The non-recourse loan replaces existing debt and provides the company with approximately $70 million for additional development and accelerated distributions.

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 over 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 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.WoodSpring.com.

Marshall Hotels & Resorts On Pace for Record Year With 14 Management Contracts in 2016 First Half

SALISBURY, Md., August 8, 2016—Marshall Hotels & Resorts, a leading hotel management and services company that operates properties nationwide, today announced that it has signed 14 third-party hotel management agreements in a total of seven different states since January of this year. The company now boasts 6,346 rooms in its portfolio of select- and full-service hotels across the country.

“Averaging two hotels a month since January, we are on pace to enjoy record growth in 2016,” said Mike Marshall, president and CEO. “These new additions are a mixture of existing hotels seeking better results and new builds looking to ramp up quickly, a testament to our ability to operate virtually all segments in all stages of a hotel’s lifecycle. We continue to have a healthy appetite for underperforming hotels that will benefit from improved management and cash infusions.

“Our aggressive growth strategy taps into all major U.S. markets, with our sweet spot tending to be in the Mid-Atlantic and surrounding states,” added Marshall. “We target markets with high barriers to new growth with multiple demand generators. We are confident that our operating expertise, excellent relationships with leading hotel brands and proven track record managing independent resort and urban properties will allow us to continue our aggressive growth goals.”

Marshall Hotels has signed management contracts for the following properties in the first half of 2016:

1. 207-room DoubleTree by Hilton in Binghamton, N.Y.
2. 112-room Staybridge Suites Royersford Valley Forge, Pa.
3. 88-room Four Points by Sheraton Long Island City Queensboro Bridge, N.Y.
4. 81-room Holiday Inn Express Rehoboth Beach Hotel, Del.
5. 100-room Holiday Inn Express Bethany Beach, Del.
6. 103-room La Quinta Inn & Suites Cleveland Airport West in North Olmsted, Ohio
7. 88-room Hampton Inn by Hilton Clemson-University Area, S.C.
8. 124-room Altoona Grand Hotel in Altoona, Pa.
9. 162-room Riverfront Hotel Grand Rapids, Mich.
10. 98-room Microtel Inn & Suites by Wyndham in Winston Salem, N.C.

Additionally, the company has opened the following properties:

11. 56-room Appomattox Inn & Suites in Appomattox, Va.
12. 16-room Anchored Inn at Hidden Harbor in Deale, Md.
13. 61-room Best Western Plus Hammondsport Hotel, N.Y.
14. 50-room Wyndham Garden Rego Park, N.Y.

The company is on schedule to transition into the second half of the year with equal fervor in growth prospects.

About Marshall Hotels & Resorts, Inc.
Salisbury, Md.-based Marshall Hotels & Resorts, Inc. has special expertise operating three- and four-star branded hotels and resorts, averaging 100 to 500 rooms, in urban and central business districts, as well as suburban/drive-to and resort locations. In addition, the company has a proven track record managing independent resort and unique urban properties. Marshall Hotels & Resorts has managed a wide array of leading hotel brands, including those under the Hilton, Marriott, Starwood, InterContinental Hotel Group, Hyatt, Carlson, Choice, Best Western and Wyndham flags. Additional information may be found at the company’s Web site: www.marshallhotels.com.

Hospitality Ventures Management Group (HVMG) Joint Venture Acquires the Marriott Century Center/Emory Area in Atlanta and Hilton Suites-Phoenix

Hotels to Receive Combined $30 Million in Property Improvements

ATLANTA, Ga. (August 8, 2016) – Hospitality Ventures Management Group (HVMG), an Atlanta-based, private hotel ownership and management company, today announced it has formed a joint venture with True North Management Group of White Plains, N.Y., to acquire the 282-room Marriott Century Center in Atlanta, Ga., and the 226 two-room suite Hilton Phoenix Suites in Midtown Phoenix, Ariz. HVMG will operate both hotels, bringing its portfolio to 35 operated hotels with 7,572 rooms nationwide. The deal was brokered by Atlanta-based Hunter Hotel Advisors for $50.75M, inclusive of the hotels’ capital reserve accounts.

Each hotel will undergo a major renovation program of approximately $15 million to upgrade property exteriors, public space, back-of-house areas and guest rooms. HVMG will oversee both renovations which are expected to begin in 2017.

“We continue to work with best-in-class partners to pursue underperforming hotels that can benefit from improved management, better operating margins, an infusion of capital investments and repositioning,” said Robert S. Cole, HVMG president and CEO. “Our management team has extensive repositioning experience and an aggressive, yet targeted, approach to maximize value creation within the full-service segment, which now accounts for more than 90 percent of our total portfolio’s revenue.

“With the addition of this joint venture, we have added three upscale hotels and resorts within the last three weeks to our rapidly growing, national hotel portfolio,” Cole added. “With approaching debt maturities as well as franchise license agreement expirations, a substantial number of hotels will likely change hands in the near future, creating additional acquisition and third-party management opportunities for proven operators. HVMG has experience in virtually all segments of the hospitality industry, from select-service to premium-branded upscale and independent boutique hotels and resorts, allowing us to move quickly and be successful in the various categories.”

Marriott Century Center/Emory Area
Conveniently located off of I-85, the Marriott Century Center/Emory Area is just minutes from the downtown area and accessible to Brookhaven, Atlantic Station, Georgia Tech, Buckhead and the CDC. Guests can unwind in “The Greatroom,” Marriott’s communal space that offers complimentary Wi-Fi, space for socializing and a relaxed atmosphere.

The property provides 25,000 square feet of luxury event and business meeting space that can accommodate up to 600 guests. Other amenities include a state-of-the-art fitness center and outdoor pool. Visitors can select from such dining options as the Stackstone Grille, a casual dining experience featuring American Cuisine, the Stackstone Lounge, with seven flat-panel HDTVs and one of the only locations in the area to feature Wii, and the Century Café, a gourmet coffee shop showcasing We Proudly Brew Starbucks, as well as grab-and-go pastries, sandwiches and salads.

Hilton Phoenix Suites
Adjacent to the Metro Light Rail, the Hilton Phoenix Suites is located conveniently in the Midtown district, a few short miles from Chase Field, home of the Arizona Diamondbacks, and Phoenix Sky Harbor International Airport. Spacious two-room suites include a separate living room, an expansive work area, refrigerator and microwave, while conference suites also provide a meeting table that seats up to eight people.

The atrium lobby is shrouded with greenery, ponds, fountains and an atrium lounge surrounded by five large screen TVs and billiard tables. Guest can enjoy casual, American fare at the Great American Grille. Additional amenities include a fitness center, indoor pool and whirlpool, a 24-hour business center and meeting space that can host up to 100 guests.

“Following their upgrades, both hotels will offer guests ‘like-new’ facilities, providing a significant competitive advantage,” Cole noted. “Combined with our proven track record in enhancing operating margins and increasing revenue soon after transition, we believe these hotels quickly will become market leaders”.

About Hunter Hotel Advisors
Hunter Hotel Advisors is the nation’s leading investment advisory firm focused exclusively on the hotel industry. Their seasoned team of investment professionals and offices nationwide consistently provide clients with optimal results in hotel brokerage, financial advisory and capital markets services of any size or complexity. With over 35 years of experience in both full- and select-service single assets and portfolios, the firm’s capacity in valuation, economic analysis and industry relationships has allowed Hunter to consistently maximize value regardless of market conditions.

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 premium branded and independent boutique hotels. It currently operates 35 hotels in 15 states totaling 7,572 guest rooms. HVMG 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.

WoodSpring Suites Announces Another New Franchised Location in Atlanta, Georgia

Stockbridge, Ga., August 3, 2016 – WoodSpring Hotels, the nation’s fastest-growing extended-stay hotel company, has partnered with Pragat 1921 to build a new prototype WoodSpring Suites hotel. The property will be located on Highway 138 in Stockbridge, Ga. This will be the fourth WoodSpring Hotels property either open or under development in Metro Atlanta.

“We’re excited to build the beautiful new WoodSpring Suites prototype in Stockbridge and to provide our guests an exceptionally positive experience at a consumer friendly price point,” said Kiran Patel, principal with Pragat 1921. “WoodSpring Hotels has proven their model can drive strong occupancy and profitability in the Atlanta market. We also appreciate the very strong emphasis the company places on maximizing profitability and net operating income.”

The projected opening date for the hotel is Q1 of 2018. Once completed, the new four-story, 122-room hotel will feature many guest amenities, such as in-room kitchens, free high-speed internet, guest laundry and the 99-point cleaning process that the WoodSpring Suites brand provides to every guest.

“We have found a great partner in Pragat 1921, and they have done a wonderful job in selecting an excellent location within one of the top markets in America. Atlanta has a strong and consistent demand for economy extended stay hotel rooms and our brand meets it in a highly profitable manner,” said Ron Burgett, executive vice president of franchise development & operations at WoodSpring Hotels. “We believe we offer one of the most lucrative opportunities in hospitality, and we’re excited to bring another location to the state of Georgia.”

About WoodSpring Hotels
WoodSpring Hotels is the company behind the nation’s fastest growing value extended-stay hotel brand with more than 200 hotels system-wide located in over 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 are hotels for good people with practical needs, down-to-earth attitudes and a comfortable style, who appreciate the value of life’s necessities – done really well. For more information, visit www.WoodSpringFranchise.com.