ROCHESTER, NY— “Look for banks to keep a tight lid on the availability of money [to hotel developers and entrepreneurs],” predicted Hudson Hotels Corp. Chairman Anthony Wilson. “If they don’t,” he said, “that’s just plain stupid!” At first brush, such an anticipated lending scenario might not appear to be overly favorable for companies like Wilson’s (i.e. operations primed for portfolio growth). However, as he pointed out, “We’re here for the long haul, so we feel confident we have more than enough time to look for— and find— the money we’ll need to grow our business.” To that end, the chairman of the primarily limited-service hotel development and management organization has taken at least one step that should free up more of his time to beat the bushes for additional working and/or investment capital— namely, the appointment of company evp/general counsel Thomas Blank to the position of president/CEO for the firm. Blank had served as COO for the hotel division of Essex Investment Group prior to signing on with Hudson Hotels as vp/acquisitions. Indeed, with Blank picking up responsibilities that were also previously held by Wilson, the Hudson Hotels chairman can turn more of his attention to plotting a course for the company’s future growth and success. “It’s not an easy world out there today,” Wilson said. “A large part of our actions and decisions will be governed by what kind of deals are available out there…and, of course, what kind of financing is available out there.” Speaking from the vantage point of some 20 years in the hotel business, Wilson noted, “As we go— and grow— forward, the game is one of pure opportunity. As such, we feel we’re in an excellent position [to compete], particularly because of our demonstrated ability to manage virtually any type of lodging property.” Along those lines, Wilson noted that of the 46 properties currently comprising the Hudson Hotels Corp. portfolio, 25 are owned outright while the vast majority of the others owned in partnership. “We really prefer equity positions; that’s why we have only a very limited number of true third-party management agreements in place,” he explained. “Of course,” he added, “while there may be lots of deal-making opportunities out there, a lot of these deals would call for a substantial amount of capital to be invested in order to successfully turn [the fortunes of]these properties around.” Developing this outlook a bit further, Blank maintained, “It’s not likely there will be a frenzy of bottom-fishing as there was in 1991.” Providing the Hudson Hotels spin to that forecast, Wilson added, “We [for one]have to be very conservative. After all, we’re a relatively small, highly leveraged operation.”
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