PHOENIX, AZ— Determined to get to the bottom of why anyone might label today’s hotel real-estate investment arena “the lunatic fringe,” Michael Medzigian of Medzigian Capital Partners and a trio of other high-profile financial-sector executives met at the Eighth Annual Lodging Conference, being held here from Oct. 2-4, to examine the role of equity players in the current economic climate. Admitting his view of the marketplace at this time is “somewhat bearish,” Medzigian noted he sees relatively few such players stepping to the forefront right now. As for why that should be the case, he contended, “Ten out of 10 opportunity fund players expect hotels to be cheaper [to buy]a year from now.” Disagreeing only marginally with Medzigian was Ken Wilson of Capital Hotel Management, who maintained “there are [major financial players]in the game right now… but by and large they’re not doing equity deals at this time.” On the other hand, Wilson warned those trying to generalize today’s hotel-investment environment against “broad-brushing” its problems and opportunities. Meanwhile, Steve McKenzie of Eastdil Realty explained there are some who continue to chase hotel-acquisition opportunities. As he explained, “Strategic hotel operators are actively picking up properties in [the name of]longer-term plays. They appear satisfied today’s operating results and investment returns are not ‘the new norm’ by any means for this industry.”—Michael Billig
