hOtels indicate siGns
Of turnarOund
Occupancy and revenue for hotels in the U.S. are beginning to rebound, according to an article by The Wall
Street Journal. Data from Smith Travel Research showed
U.S. hotel occupancy rose to 54.7 percent in the first five
months of 2010, two percentage points more than the
same period in 2009. Revenue per available room (revpar)
rose 1 percent to $52.99 in the first five months of 2010,
according to Smith Travel.
Before the hotel industry started seeing a decline,
occupancy averaged 59. 4 percent and revpar averaged
$64.57 in the first five months of 2008. In 2006, occupancy
peaked at 63.2 percent. PKF Consulting Inc., a hotel-industry analysis company, predicts a return to revenue
peaks by 2013 and occupancy in 2014.
banks to launch New
Funding for Commercial
property owners
Big banks, including J.P. Morgan Chase & Co., Goldman
Sachs Group Inc. and Citigroup Inc., are soon expected
to launch two offerings of commercial-mortgage-backed
securities (CMBS) totaling $1.4 billion, according to the
The Wall Street Journal.
The journal said the upcoming transactions represent
evidence that big banks are coming off the sidelines
as property values begin to stabilize. However, with
more than $1 trillion of maturing debt over the next five
years, the journal said a rush of new CMBS deals is
not expected in the near term. More than 8 percent of
$578.6 billion of loans packaged into CMBS are at least
60 days past due right now, and that rate is expected to
rise as high as 11. 5 percent by year’s end, according to
Standard & Poor’s, a credit-rater.
QUOTABLES
“one must spend time in
gathering knowledge to give it
out richly.”
—EDMUND CLARENCE STEDMAN, AMERICAN POET
“Money is good for nothing
unless you know the value of
it by experience.”
—P. T. BARNUM, AMERICAN SHOWMAN
“First say to yourself what you
would be, then do what you
have to do.”
—EPICTETUS, GREEk PHILOSOPHER
“Success doesn’t always mean
winning. there are other ways
to win, rather than winning
‘the game.’ you can still win
in life without winning the
game.”
—SAMUEL L. JACKSON, AMERICAN ACTOR
“the only thing to do with
good advice is to pass it on. it
is never of any use oneself.”
—OSCAR WILDE, IRISH WRITER
“the journey of a thousand
miles begins with a single
step.”
—LAO-TZU, CHINESE PHILOSOPHER
“ we must always think about
things, and we must think
about things as they are, and
not as they are said to be.”
—GEORGE BERNARD SHAW, IRISH PLAy WRIGHT
www.irem.org/jpm 7 sep.oct 2010
