News & Stories

Heiligendamm. With a large surety from the state in the millions, the financially battered Grand Hotel Heiligendamm in Germany is to be able to effect an about-turn. However, industry experts expect permanent problems due to lacking infrastructure.

New York. In the USA, the looming insolvency of the Extended Stay Hotels is causing a stir. The company operates more than 680 hotels in the US and Canada, which mainly focus on long-term guests. The Lightstone Group bought Extended Stay from Blackstone in June 2007.

Paris. Hotel values are down 20% to 60%, ‘cap rates’ are soaring, revenues are falling and there is a liquidity squeeze… At the first ESSEC "Annual Forum on Commercial and Hospitality Real Estate", held on 5 June in Paris experts said the the return of banks to hotel financing may take long. The hotel sector will probably have to wait until the office building and other commercial property segments have recovered again. Right now, banks may force sales, even if they have to book losses on the loans. An up to date excursion into the world of hotel financing.

Nuremberg. For the majority of companies in Germany, lending by banks has not yet been cut. Just six per cent of companies so far are claiming that financial institutions have cut lending, terminated ongoing finance agreements or limited credit in the wake of the economic and financial crisis. This means the feared credit crunch is so far barely noticeable on the market.

Amersfoort. Ailing Golden Tulip Hospitality Group is still negotiating with potential split up. The background behind the difficulties is slowly getting clearer. In the meantime, Golden Tulip keeps stony silence.

Lausanne. Golden Tulip Hospitality Group voluntarily applied for receivership on March 31. However, by its own account, the group is negotiating with two potential partners about continued existence.

London. A "Global Hospitality Recovery Fund' is raised up to 500 million Euro in order to acquire luxury hotels, and is now actively seeking investment from both institutions and individuals. Sought-after are non-performing assets with negative cash flow, delinquent assets being disposed of by institutional investors, distressed assets in negative equity and assets that are in breach of covenants by borrowers.

Zurich. Alongside Switzerland's secretive banking laws which have come under fire from many fronts of late, the right of lump-sum taxation for rich foreigners has now also been questioned. Following a referendum in Zurich, this privilege will be revoked as from 2010 in the Swiss capital. Opponents of lump-sum taxation in other cantons have drawn strength from the move. Should this prevent rich foreigners moving to Switzerland, the Swiss luxury hotel industry is also likely to be affected. Many hotels were and continue to be financed by means of luxury apartments in or in the vicinity of the hotel.