WASHINGTON D.C. While the industry is experiencing a slowdown, and consumers are fearful about where the economy may be headed, experts at a panel entitled “Creative Financing” held during the Cornell University Hospitality Industry Conference here said that financing is still available if you: have a solid project proposal, good location, strong reputation and work with a lender with whom you have an existing relationship.
Panelists who discussed their financial strategies included: Bill Stadler of FelCor Lodging Trust, Judy Hendrick of Wyndham International, Carl Groth of Willis of New York and Michael Fishbin of Ernst & Young.
“You also need to put more money up on new deals today,” said Stadler, who claimed that FelCor has done well in these challenging times by working hard and being creative.
Wyndham s strategy has been to do sliver deals with partners, said Hendrick, which has worked well for the once fledgling company. “Relationships are key, because if you build a rapport in good times, those lenders will likely work with you in the down times,” she said, alluding to Wyndham s relationship with Apollo Real Estate (which helped Wyndham emerge from its financial troubles several years ago.)
Most panelists agreed that selling non-strategic assets during these slow times in the hotel industry s cycle enables lodging companies to keep their development pace moving at a somewhat steady pace.
Other, more creative ways to get deals done include seeking public subsidies and applying risk management principles to a deal at the very start, said Fishbin and Groth respectively. (3/23/01) Shannon McMullen