Hamernik Headlines

Recent Hamernik Projects – Hotel and Hospitality Industry

Posted on 07. Sep, 2010 by admin2 in Engagements, Hamernik Headlines

In 2009-2010, Hamernik has provided financial advisory services to over a dozen unique borrowers in the hotel and hospitality industry.  While working for the entities and their owners, Hamernik has created and negotiated debt restructuring proposals and/or exit events for each hotel.  Cumulatively, the mortgage and other secured debt from each of the borrowers exceeds $91 million. 

One upcoming event affecting virtually all hotels in central Indiana is the impending opening of the JW Marriott hotel in downtown Indianapolis scheduled in February 2011.  In addition to its sister properties which have already opened, the JW Marriott Indianapolis itself will add over 1,000 rooms to the supply in downtown Indianapolis.  By 2011, the total hotel room supply in the downtown Indianapolis area will surpass 7,100 rooms.  While the new Indiana Convention Center is slated to open in January of 2011, the supply of hotel rooms is anticipated to outpace demand in calendar year 2011.  Hotel owners and their lenders should be mindful of the potential short-run competitive pressure that will emerge upon the opening of the JW Marriott.  While most market participants forecast demand catching up to supply as more and larger conventions are lured to Indianapolis in 2012 and beyond, now is the time for all hotel stakeholders to be planning for the potentially turbulent 2011 market conditions.

Tags: financial advisory, Industry Insights, JW Marriott, restructuring