Finding the Right Broker

Finding The Right Broker

5 qualities that make for an effective partnership by Suraj Bhakta, CEO of NewGen Advisory Published May 2024 Understanding what you need from your hotel broker is paramount to securing a smooth transaction at an optimal price. Essentially, your broker is the captain of your transaction ship, and finding the right one can make or […]

Navigating the Rising Costs of Hotel Insurance

Navigating the Rising Costs of Hotel Insurance

In the complex world of hospitality, hotel insurance stands as a crucial but often burdensome expense. With a variety of risks ranging from natural disasters to liability claims, understanding and managing the costs of hotel insurance is vital for hotel owners and operators. This article delves into the intricacies of hotel insurance coverage, the challenges […]

Why Food & Beverage Is Important in the Hotel Business

The hospitality industry has seen a transformative shift in the role of food and beverage (F&B) services, evolving from a secondary amenity to a primary attraction for guests. This article explores the significance of F&B in the hotel business, catering to hotel owners, buyers, sellers, and investors seeking to understand its impact on profitability, guest […]

Understanding the True Cost of Running a Hotel Franchise

Understanding the True Cost of Running a Hotel Franchise

The decision to enter the hotel industry through franchising opens a world of opportunities, yet it’s accompanied by an array of financial commitments that demand careful consideration. The allure of leveraging a recognized brand, along with the comprehensive operational support a franchise offers, large loyalty programs, and brand recognition is undeniably attractive to aspiring hoteliers. […]

Navigating CRE Challenges: FDIC Issues Advisory Letter for Financial Institutions 

FDIC cautions financial institutions in new advisory letter. The Federal Deposit Insurance Corporation (FDIC) has released a crucial advisory for banks, highlighting the need for robust risk management in commercial real estate (CRE) lending. This letter replaces the 2008 version, Managing Commercial Real Estate Concentrations in a Challenging Environment, underscoring the significance of strong capital, appropriate […]

The Impact of a Hotel’s Location

A hotel’s location is a crucial determinant in the overall success of a hotel. A hotel based in a favorable location tends to attract more clients compared to one that is located in an area that is less desirable. This translates to increased revenues. This article will examine how surrounding attractions and environment play a […]

Human Trafficking in the Hotel Industry

Hotels have become a familiar scene of human trafficking crimes across the country. According to the Polaris Project, 75% of those who survive these crimes state that they have been involved in human trafficking in the hotel industry. The National Human Trafficking Resource Center (NHTRC) also reports that hotels are frequently referenced in potential human […]

What Hotel Employees Find Most Important

hotel employees

As any service company will attest, employees are your biggest asset.  It can be difficult in today’s culture to hire and retain good employees.  So, you must look beyond the salary to those additional perks that lead to employee satisfaction.  After all, your hotel employees from the concierge to the housekeeping staff are the face […]

The Importance of Curb Appeal

curb appeal

Renovations play a crucial role in improving a hotel’s occupancy rates and overall revenue. However, upgrading the interiors may have a minimal impact if you do not aim to impress guests even before they step through your front door.  Most owners typically prioritize decorating the lobbies, meeting areas, guestrooms, and restaurants, while overlooking the exterior […]

Importance of Cap Rates in the Hotel Industry

cap rates

Classified as income-producing assets, hotels are mainly valued based on their recurrent income-generating potential. Similar to other forms of commercial real estate, one fundamental indicator of their percentage profit is the capitalization rate (cap rate). So, is a higher cap rate always the sign of a great deal? Not entirely. What Are Cap Rates? A […]