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Despite the well-documented economic struggles that have laid low the hospitality industry as of late, a number of firms are soldiering on in the face of adversity–and some are even viewing now as a time of opportunity. Less than a week after Intercontinental Hotels Group unveiled plans to build new hotels in Edinburgh and Moscow–the latter being the world’s largest Holiday Inn–Savills L.L.C. has formed an advisory group designed to guide clients in value-added hospitality plays. Savills L.L.C., the real estate investment banking arm of international advisory firm Savills Plc., said the new unit will focus on owners of hotels,…

While Federal Reserve chairman Ben Bernanke’s recent comments that the economy could get back on its feet by 2010 will probably go a long way toward calming some frayed nerves, for now there remains plenty of bad news to go around.The Mortgage Asset Research Institute, an arm of LexisNexis, reported on Monday that mortgage fraud nationwide spiked 26 percent in 2008 when compared with the year before, even though the aggregate volume of mortgages originated dropped during the same period. “With fewer loan originations today, the data suggests that the economic downturn may have created more desperation, causing more people…

As the recession continues to worsen, it is time for real estate investors to consider its impact on one of their most fundamental tools: market-level demographics.Typically, investors view this data either as a commodity—the quicker and cheaper, the better—or as a requirement for every financial package. In these volatile times, investors need to look a little deeper, gauging data on the long and short of how economic conditions like rising unemployment and foreclosures can impact the accuracy of demographic data.Three million jobs were lost in 2008, and some experts predict that another 1 million or more will disappear this year….

For the sixth time in the past seven months, the retail sector has claimed the dubious distinction of generating more new delinquent securitized loans than any other commercial property category, according to an analysis released by Fitch Ratings yesterday. Fitch predicts a steady increase in loan defaults generated by shopping centers and single-tenant properties this year as soft consumer spending and bankruptcies continue to plague the retail sector.Specifically, Fitch tracked 46 retail loans, valued at $277 million, that became newly delinquent in February. Forty-three of the loans have an outstanding balance of $15 million or less and are backed by…

Following its acquisition by Behringer Harvard, Hawks Cay Resort in the Florida Keys has completed a $40 million renovation. The 177-room luxury resort’s management team is headed by Northview Hotel Group L.L.C.’s David Zeuske, who in February 2007 began work to make the resort the employer of choice in the Florida Keys. His strategy includes:• a strong leadership culture,• getting the right people in the right place at the right time and• matching the needs of associates with the needs of the organizationVariable, Seasonal DemandDemand at Hawks Cay is highly seasonal, and it peaks in the spring and summer. Staffing…

Chicago’s Shangri-La Hotel has joined the list of high-profile hotel casualties of the credit crunch. Yet the JW Marriott Indianapolis four-hotel complex continues to rise, with full financing in place.Shangri-La Hotels and Resorts had planned 200 rooms in the long-stalled Waterview Tower mixed-use project overlooking the Chicago River but announced earlier this month that it was suspending the hotel project and did not reveal when, or even if, work might start up again.Less than 200 miles away, however, a $450 million, four-hotel project is proceeding on schedule. The JW Marriott complex in Downtown Indianapolis began construction in May 2008 and…

As the economic gales continue to blow, do any U.S. office markets offer a port in the storm? The short answer is, ‘Not really.’ Vacancy fell modestly last year in an eclectic mix of eight markets, led by Greenville, S.C.; Wichita, Kan.; and Pittsburgh. However, even these holdouts are unlikely to escape the floodwater in 2009.Beyond the current turmoil, which markets are likely to offer the best five-year investment outlook? Every year Grubb & Ellis Co. ranks major markets against a set of criteria important to the performance of office properties, including economic indicators like job growth, demographic indicators like…

A falloff in advertising and competition from online information sources have written themselves into tough economic times for many newspapers. But one newspaper, The Miami Herald, recently dug up some economic relief in a major lease deal at its headquarters, located on Biscayne Bay.Brown Mackie College announced on March 11 that it will lease 50,000 square feet at One Herald Plaza, from the paper’s parent, The McClatchy Co. The 10-year deal is valued between $18 million and $20 million, based on current Downtown office rental rates.The lease will have a powerfully positive effect on the paper’s bottom line, said Alan…

This is not a typical economic downturn. Owing to structural effects from the housing bust and the correction in the global capital markets, its effects on the nation’s industrial markets are dispersed. While nearly all regions will surpass their previous availability-rate highs, the reasons can vary. Arizona and Texas are examples of regional economies that are declining for different reasons, one local and one global.The fallout in consumer-driven markets is pronounced most acutely in states like Arizona, those highly affected by the housing bubble. In Arizona, for example, the aggregate availability rate increased 520 basis points in 2008 to a…

The student housing market continues to grow, despite a struggling economy. College enrollment remains on an upward trajectory and is expected to increase 8 percent over the next four years. Despite the recession, more than 15 million additional degreed workers will be needed nationwide through 2012 to replace retiring Baby Boomers, and this should further stimulate demand for higher education and, in turn, student housing.Another driver of student housing demand is the continued expansion of the college-aged population, which is expected to grow 4.2 percent through 2012. There are some pressures in the near term, however. The subprime meltdown and…