LOS ANGELES– Hotel lenders, borrowers, and analysts at the 15th annual Meet The Money conference here unilaterally voiced the opinion that the lodging industry is in for “more of the same” for the coming year. This prognosis is viewed as good news in light of continually rising RevPAR levels and higher hotel valuations. Mark Woodworth, executive vp, PKF Consulting, got things started by noting that “the post-9/11 recovery continues to solidify and there is a pervasive mood of happiness in the industry.” During his “How Good Will It Get?– U.S. Lodging Industry Outlook” seminar, he added that “a year ago occupancy was in a recovery mode, now RevPAR and ADR are on the rise.” In a panel entitled “Too Much Debt? Too Much Equity? A Market In Transition or a Market Out of Control?” Wayne Williams, president, Williams & Associates, moderated and crystalized the last three years for the industry. He referred to 2003 as “the haves and have nots”; 2004 as “so much money, so little time”; and 2005 as “too much debt and equity.” During the same panel, Jerry Earnest, executive vp, specialty lending group, GMACCM, maintains “there is a lot of money chasing deals and the spreads have gotten unbelievable.” He also referred to the current period as “a unique time for capital markets, hotels in particular.”
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