Acquiring a Hotel for the First Time? Buckle Your Seat Belt
September 25, 2013Acquiring a Hotel for the First Time? Buckle Your Seat Belt
It Can Be a Great Investment and Adventure -- But Unlike Any Other Property Investment; Risks Lurk in Every Guestroom, Say Marks Paneth Videos
NEW YORK, NY--(Marketwired - Sep 25, 2013) - Owning and acquiring a hotel can be a strategic endeavor. But the inclination to let the management company take care of operations is filled with inherent conflicts. And the dangers are magnified if one has purchased a distressed hotel.
In two videos, Lawrence Cohen, Hospitality Group Leader at Marks Paneth, discusses the steps hotel owners should take to get them closer to fulfilling their vision. For instance…
- Don't get so caught up in the acquisition that you forget the implications of the day-to-day. A hotel is a "soap opera with rooms." Hotel buyers, especially those pursuing distressed properties, need to look beneath the surface to identify all the operational problems so that they can be addressed and with minimal surprises.
- Be aggressive about managing the management company. Hire an asset manager to work alongside the hotel management company and/or franchisor, e.g. the Starwood, Hilton, or Marriott. While the management company oversees the day-to-day operations of the hotel and may do it quite well, they may not work with the owner's best interest in mind. The asset manager can ensure the hotel owner's vision, and bottom line, are front and center.
Acquiring, owning and managing a hotel or distressed property can be a profitable investment, as long as the new owners don't let the excitement of the acquisition distract them from the work that needs to happen once the deal is signed.
The video, "Word to the wise for hotel owners," is available at http://www.markspaneth.com/publications/video-word-to-the-wise-for-hotel-owners. The video, "Buying a distressed hotel? Avoid being the dog that catches the car," is available at http://www.markspaneth.com/publications/video-buying-distressed-hotel-avoid-being-the-dog.
For more information, or to speak with Lawrence Cohen, please contact Frank Lentini of Sommerfield Communications, Inc. at (212) 255-8386 or lentini@sommerfield.com.
About Marks Paneth LLP
Marks Paneth LLP is an accounting firm with over 500 people, of whom nearly 65 are partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners, and investors as they navigate the business life cycle.
The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth LLP, whose origins date back to 1907, is the 32nd largest accounting firm in the nation and the 16th largest in the New York area. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top forensic accounting firms for the fourth year in a row.
Its headquarters are in Manhattan. Additional offices are in Westchester, Long Island and the Cayman Islands. For more information, please visit www.markspaneth.com.
