Some Hotel Guy

A new pinned tweet! Links below to a glossary of terms (will be updated on an ongoing basis), my bio thread, and whatever else feels right

@aussieflya The guarantee fee doesn’t bother me THAT much, though it’s not a PG - it’s a funded guarantee entity, so I feel like it’s a bit less necessary. The financing / refinancing fee I’m allergic to

@somehotelguy So you don't want to pay it because of total fee load or your just allergic to a "finance/guarantee fee"?

Any of you ever see a structure where some LPs pay, say, a guarantee fee or financing fee but others don’t? Asking as the LP who’s gonna try & negotiate it out

@aussieflya Dev fee but no PM or CM. In their defense, they’ve been at this for like 4 years and are only just getting ready to put a shovel in the ground

@somehotelguy Is GP also taking dev, PM or CM fees? Interesting to me how GPs split things out...

@aussieflya GP is responsible for the loan recourse and charging for it

@somehotelguy The GP is guaranteeing the loan and charging the LP a fee for that or it's to a 3rd party?

@av_dcre @jalex2003 Construction loan

@jalex2003 I’m the largest individual LP, so I think I am bringing something they aren’t. If I do this, I’m also >50% of LP capital, but weirdly the GP is in for more

@somehotelguy depends on how much the GP wants/needs your money. Are you bringing something to the deal that other LPs aren't? If not, why would they agree if other LPs are agreeing. If so, I think it's better to ask to be part of the GP economics. Way cleaner.

@iononrecourse The replacement cost doesn’t exist because nobody would ever replace this

To be "below replacement cost", take out land value and add back the cost to upgrade to what would be the replacement. *And then be sure it's something worth replacing.

lol, love reading an agreement that says: “…one cent ($.02) per hour…” Great lawyering. Great.

@mrfboyer @bobbyfijan Could be but would be very inconsistent w/ how Park Hyatt brand was run w/in Hyatt. Would be VERY consistent w/ how Ritz brand was run w/in Marriott & personalities involved

@bobbyfijan @somehotelguy Park Hyatt hotels - you can book a breakfast rate on points. “Travel hackers ” are obsessed with Hyatt.

What chain’s flagship ultra-luxury property … has a free breakfast buffet? @somehotelguy

@bobbyfijan I’m 90% sure this was Herve Humler from Ritz and Bill Marriott / Arne Sorensen laid down the hammer

@J264B It’s actually impressive. I can’t be that upset about it bc I was penciling in ‘flat industrywide with Luxury mid single digits up, UUS low single digits up, and Upper Midscale and below down’ but I’m wrong too

Whatever the hotel c-corps and REITs guided for H1 RevPAR seems to have been optimistic…

@KarlBlaha For YOY comparison purposes a bit but basically OCC and ADR were supposed to be flat to +1% this year and that ain’t happening

@somehotelguy Is occupancy down in North America and in Europe bc rates are up considerably. I get sacrificing occupancy for rate but this doesn't seem sustainable.

@Trader_Jew lol, I mean, fair

@somehotelguy On the flipside, this should help with the international inbound/outbound imbalance.

The balcony across from my apt (across the street) they let their dog use as a toilet. Can’t imagine how gross that apt is…

Biggest POS I’ve ever owned

@roymdonnelly Owner / operator select service is most liquid and highest volume

@somehotelguy Where do you see the most transaction volume and liquidity (might be too separate property profiles)?

At the airport and procrastinating. Who wants to talk hotels?

@aussieflya Lot of hotel supply has come out in that sub market, and you don’t need to worry about new supply. Good, not great, for both corporate and leisure. Would want to see floor plates / conditions before more thoughts on hotel vs resi though

@somehotelguy What are your thoughts on location of Lexington Plaza Hotel @ 120 E 39th St? Interesting as a hotel or convert to resi?

@yungmetronome And the good concierges are still very well connected but I’ve never used a service like you mentioned so dunno about comparison

@somehotelguy What’s the occupancy of the 4 or 5 star top-end suites? What’s the pricing strategy? Just never made sense to me vs getting like an Airbnb but I don’t have a trust fund + how connected are 5 star hotel concierges nowadays vs lifestyle concierge services?

@yungmetronome Occ / ADR / pricing strategy is super market and box dependent. In some markets (e.g., NYC) 5-star hotel suites have higher revenue PSF than standard keys, but not in most. But you need for group biz that would otherwise look elsewhere.