News & Insights: hospitality
Despite Struggles, the Hotel Industry is Preparing for a Renaissance
By Elizabeth Mueller | March 19, 2021
As we continue to see the easing of government-imposed closures and travel restrictions, the summer months will be a true indicator of the pace of recovery and the path forward. The hotel and lodging industry is well prepared to welcome back the travelers that keep the sector humming.
Are We There Yet? Looking down the road at the health of the hospitality sector
September 1, 2016
Times are good for many of us in the hospitality industry. Across every sub-sector, from hotels and airline travel to new building development and job creation, the industry continues to enjoy the fruits of a new US economic recovery. And yet, those who have lived through downturns and shrinking markets find times like this to be perilous, leading all of us to ask, “Are we there yet?” — i.e. are we at the peak of the market and in for a nasty shock.
In this article, Lawrence Cohen explores the ups and downs of the US hospitality industry and the possibility that we are near the top of the business cycle.
This article, “Are We There Yet?”, was originally published in the September 2016 issue of Metropolitan Corporate Counsel.It can be found on page 29.
"Irrational Exuberance” or Golden Age: Is This The Best of Times for New York City Hotels?
January 11, 2016
What’s changed in the NYC hospitality sector over the past two years? Nothing, but everything…
Partner and Hospitality Group Leader Lawrence Cohen has refreshed his 2014 article, “’Irrational Exuberance’ or Golden Age: Is this the Best of Times for New York City Hotels?” and discusses the impact that the last two years have had on the market.
To Operate or Not to Operate Your Hotel Restaurant Yourself...That is the Question
April 29, 2015
Upscaling your hotel restaurant can do wonders for your brand. For hotel owners who are ready to renovate their property as a result of a healthy economy and are looking to upgrade services, the restaurant is often a prime target for renovation. For a well-run full-service hotel, quality food service is paramount. But a top-flight hotel restaurant can be a draw in its own right, attracting customers who might not otherwise visit the hotel, and adding energy and an air of prestige to help build the hotel’s brand. Leasing the operation to a third party may be the obvious answer – and it can be profitable to boot. But there are traps for the unwary. And the result – rather than a smooth-running business – can become a nightmare of obligations that don’t fit well with the restaurateur’s talent and business and can result in ongoing contract disputes. And if you, the hotelier, decide to run the restaurant yourself, you’ll find that unless you know the business well, the execution may be much different than your original plan.
Committing to a Hotel Conversion? Look Before You Leap
January 7, 2015
Conversions are a hot topic in the hospitality industry – understandably, because the hotel market itself is hot, and converting a property is a quick way to establish or expand your footprint. In many cases, it’s far easier and much less expensive to convert an existing building than it is to build from scratch. Why wouldn’t you want to get a fast start on an opportunity – and possibly a jump on the competition – by committing to a conversion? For all players in hotel property – real estate investors looking to move into hospitality, business owners who want to claim a share of hospitality industry revenues and established hotel owners in need of an expansion path – conversion looks like the smart way to go. Is it? Not always.
Pigs Get Slaughtered: Do’s and Don’ts for Buyers and Sellers in a Red Hot Hotel Real Estate Market
May 2, 2014
Today’s hotel transaction market is definitely hot – after several slow years, the pace has accelerated sharply – and it’s exciting for both buyers and sellers. Should you be a buyer . . . a seller . . . or both? Should you act now, or wait? The answer depends on your situation – and also on your expectations. How realistic are they? A hot market can be a good time to make money. It can also burn you. As with any other market, you need to understand the market dynamics and develop a strategy. Above all, don’t get greedy. What’s said of the stock market can also be said of buying and selling in the hospitality industry: Bulls make money and bears make money. But pigs get slaughtered.