Hotel Management • April 23, 2012

■ ➔ pulse ROOM RATES RISE .. Top 3 projected gainers in ADR 2011-2012. The Leading Hospitality News Authority Since 1875 HotelManagement.net Vol. 227, No. 5 | April 23, 2012 A Questex Hospitality Group Publication ➊ San Francisco 10.4% ➋ Miami 9.1% ➌ New Orleans 8.6% Source: PKF Hospitality Research SEE PAGE 10 FOR MORE TRENDS & STATS Asset-light shifts to asset-right U.S. hotel companies look to increase ownership stakes through targeted deals By Andrew Sheivachman ASSOCIATE EDITOR Fairmont Hotels & Resorts’ purchase of the Fairmont Sonoma Mission Inn & Spa was a strategic move to boost profi tability then sell. FAIRMONT HOTELS & RESORTS N ATIONAL R EPORT —For years hotel brands embraced an asset-light ownership model to shore up balance sheets during an un-certain economy. Lately major franchise companies have made key asset purchases—triggered in part by Hyatt Hotels Corp.’s 2011 investments to reinforce its select-service portfolio. Is the time now for brands to switch from asset-light to asset-right, as new opportunities emerge in a strengthening economy? “Many [hotel companies] are starting to look at targeted acqui-sitions, whereas everyone was focused on an asset-light model [before],” said Michael Glennie, president and COO of Fairmont Raffles Hotels International. Fairmont recently acquired the Fairmont Sonoma Mission Inn & Spa, an almost contradictory move from a company that rarely See Ownership | page 25 FINANCING More opportunity now available for hotel lending if it’s the right project By Esther Hertzfeld CONTRIBUTING EDITOR N ATIONAL R EPORT –While there are opportunities for hotel lend-ing in new construction, the bulk of lending that is readily available is for renovations and refi nanc-ing, especially for existing assets that have a good brand and com-panies with a good track record. “Bank lending is available for properties with existing cash See Lending | page 14 ONE – on – ONE Loews Hotels’ PAUL WHETSELL This seasoned hotelier looks to expand the brand’s footprint fast | See page 30 ■ ➔ TRENDS & STATS. inside this issue DEVELOPMENT. DESIGN. Laundry design gets a new look Properties make greater use of their laundry spaces, adding extra amenities and services for guests. PAGE 22. Top markets increase rate Rising occupancy levels will enable hotel managers in major markets to raise their room rates in 2012. PAGE 10. New York’s downtown scene The Conrad New York opens in Battery Park City, while 5 Beekman will become a Thompson Hotel. PAGE 12.