Thursday, January 31, 2008
Tuesday, January 29, 2008
Meeting trends report
Meeting Professionals International (MPI) has released its annual trends report, FutureWatch 2008.
The report covers the meetings field from a planner's-specific view. Hence, while there are tables on meeting attendance trends and average meeting budgets, there are also tables on the average number of facilities considered by a planner when booking a meeting (by type of meeting group) and tables on the impact of webcasting on the meetings market.
for an introduction and the full report
The report covers the meetings field from a planner's-specific view. Hence, while there are tables on meeting attendance trends and average meeting budgets, there are also tables on the average number of facilities considered by a planner when booking a meeting (by type of meeting group) and tables on the impact of webcasting on the meetings market.
for an introduction and the full report
Harrah's privatization
from yesterday's GlobeSt (1/28):
UPDATE Last updated: January 28, 2008 07:01pm
Apollo, TPG Complete Harrah’s Privatization
By Brian K. Miller
"LAS VEGAS-Harrah’s Entertainment, the world’s largest casino company by revenue, is now a private company. The owner of 39 casinos is now in the hands of private equity firms Apollo Management LP and TPG Capital, whose investors include private and public pension funds, endowments and institutions." ...
"Per the merger agreement signed Dec. 19, 2006, TPG and Apollo affiliates have agreed to acquire Harrah’s in an all-cash transaction valued on that date at approximately $27.8 billion. The figure includes $90 in cash for each outstanding share of Harrah’s common stock and the assumption of $10.7 billion of debt. The result of the deal will be a near doubling of Harrah's debt load, which will require it to focus on paying down that debt rather than reinvesting in growth, according to related documents filed with the Securities and Exchange Commission." ...
for the complete story
UPDATE Last updated: January 28, 2008 07:01pm
Apollo, TPG Complete Harrah’s Privatization
By Brian K. Miller
"LAS VEGAS-Harrah’s Entertainment, the world’s largest casino company by revenue, is now a private company. The owner of 39 casinos is now in the hands of private equity firms Apollo Management LP and TPG Capital, whose investors include private and public pension funds, endowments and institutions." ...
"Per the merger agreement signed Dec. 19, 2006, TPG and Apollo affiliates have agreed to acquire Harrah’s in an all-cash transaction valued on that date at approximately $27.8 billion. The figure includes $90 in cash for each outstanding share of Harrah’s common stock and the assumption of $10.7 billion of debt. The result of the deal will be a near doubling of Harrah's debt load, which will require it to focus on paying down that debt rather than reinvesting in growth, according to related documents filed with the Securities and Exchange Commission." ...
for the complete story
Tuesday, January 22, 2008
Macau v Vegas
from BBC News (1/21):
Macau revenues close in on Vegas
Gaming revenues in the southern Chinese territory of Macau soared last year, beating expectations and rivalling proceeds from the Las Vegas region.
"Revenues rose 46% to 83.8bn Macanese patacas ($10.4bn; £5.3bn) in 2007, according to official figures.
Figures for Clark County in the US, which contains Las Vegas, have yet to be released, but were $10.6bn in 2006." ...
for the complete story
Macau revenues close in on Vegas
Gaming revenues in the southern Chinese territory of Macau soared last year, beating expectations and rivalling proceeds from the Las Vegas region.
"Revenues rose 46% to 83.8bn Macanese patacas ($10.4bn; £5.3bn) in 2007, according to official figures.
Figures for Clark County in the US, which contains Las Vegas, have yet to be released, but were $10.6bn in 2006." ...
for the complete story
Hilton in fight with proposed retail development
from yesterday's Columbia (MO) Daily Tribune (1/21)
Hotel fights retail store
Hilton owner irked over new Menards.
By KAT HUGHES of the Tribune’s staff
Published Monday, January 21, 2008
"When Raman Puri and his three partners bought the land in the Centerstate Crossing development in 2005 to construct a Hilton Garden Inn, the only things backing their investment were a plot of graded dirt, two retail plazas on a cement pad and a developer’s promises for future restaurants and shops." ...
"Now, almost two years after Puri and his partners opened the Hilton Garden Inn in May 2006, the developer, Curtis McDonald, is gone after turning the property over to his bank, and what Puri characterizes as a restricted use of the property - a Menards home improvement retail store - is moving next door to his hotel.
At the Jan. 10 Columbia Planning and Zoning Commission meeting, the commission recommended approval of a development plan for the Menards store despite Puri’s protests that it would be detrimental to his hotel because 88 rooms would soon face the store’s outdoor storage area." ...
"Puri said he thinks Menards should be considered a warehouse." ...
for the complete story
Hotel fights retail store
Hilton owner irked over new Menards.
By KAT HUGHES of the Tribune’s staff
Published Monday, January 21, 2008
"When Raman Puri and his three partners bought the land in the Centerstate Crossing development in 2005 to construct a Hilton Garden Inn, the only things backing their investment were a plot of graded dirt, two retail plazas on a cement pad and a developer’s promises for future restaurants and shops." ...
"Now, almost two years after Puri and his partners opened the Hilton Garden Inn in May 2006, the developer, Curtis McDonald, is gone after turning the property over to his bank, and what Puri characterizes as a restricted use of the property - a Menards home improvement retail store - is moving next door to his hotel.
At the Jan. 10 Columbia Planning and Zoning Commission meeting, the commission recommended approval of a development plan for the Menards store despite Puri’s protests that it would be detrimental to his hotel because 88 rooms would soon face the store’s outdoor storage area." ...
"Puri said he thinks Menards should be considered a warehouse." ...
for the complete story
new Jewish-American museum planned for Philadelphia
from today's Architectural Record news briefs (1/22):
Jewish-American Museum Rising in Philly
January 22, 2008
By Joseph Dennis Kelly
"The Smithsonian-affiliated National Museum for American Jewish History (NMAJH), the nation’s only museum documenting the Jewish-American experience, has assiduously expanded its collection from 40 objects, when it opened in 1976, to more than 20,000. In doing so, it has outgrown the meager 6,000 square feet of exhibition space in its current home, a half-block from the spot on Philadelphia’s Independence Mall where it is constructing a new 100,000-square-foot complex designed by Polshek Partnership. NMAJH hopes that when the $150 million space opens on July 4, 2010, it will be able to expand its programming and quintuple its attendance to 250,000 visitors a year." ...
"The terra cotta volume will house 30,000 square feet of galleries, an education center, and a 200-seat theater, while the glass-clad wing will contain event rooms as well as a series of circulation spaces and staircases. This wing will be crowned by the “Freedom Beacon,” a flame symbolizing Judaism’s 5,000-year history that will be positioned at the top of a 104-foot-tall atrium." ...
for the complete story
Jewish-American Museum Rising in Philly
January 22, 2008
By Joseph Dennis Kelly
"The Smithsonian-affiliated National Museum for American Jewish History (NMAJH), the nation’s only museum documenting the Jewish-American experience, has assiduously expanded its collection from 40 objects, when it opened in 1976, to more than 20,000. In doing so, it has outgrown the meager 6,000 square feet of exhibition space in its current home, a half-block from the spot on Philadelphia’s Independence Mall where it is constructing a new 100,000-square-foot complex designed by Polshek Partnership. NMAJH hopes that when the $150 million space opens on July 4, 2010, it will be able to expand its programming and quintuple its attendance to 250,000 visitors a year." ...
"The terra cotta volume will house 30,000 square feet of galleries, an education center, and a 200-seat theater, while the glass-clad wing will contain event rooms as well as a series of circulation spaces and staircases. This wing will be crowned by the “Freedom Beacon,” a flame symbolizing Judaism’s 5,000-year history that will be positioned at the top of a 104-foot-tall atrium." ...
for the complete story
Sunday, January 20, 2008
more misc news
Builder and Developer (Jan): workforce housing; affordable housing; green residential dvt in Irvine, CA; historic, adaptive reuse
M&C (Jan): Canadian efforts to entice more conferences; international brief focus on Vancouver; how-to for cities to calculate the value of meetings; golf meetings new courses; golf meetings clubhouse facilities; destination guides: WI; Albuquerque, NM; Long Beach, CA
Economist (1/19): Boomers and housing market
Native American Casino (Jan): feature on the Dakota Dunes Casino
National Real Estate Investor (Jan): Atlantic City mixed-use dvt plans; Durham, NC redevelopment; Manhattan retail; apartment market; luxury condo market
Tradeshow Week (1/14): resort meeting market
Retail traffic (Jan): commercial mortgages and market conditions; premium outlets; brownfields into retail
Tradeshow Week (12/10): Gaylord launches new plans; tradeshow space rates up
Kiplinger Letter (1/11): housing market and economic trends
M&C (Jan): Canadian efforts to entice more conferences; international brief focus on Vancouver; how-to for cities to calculate the value of meetings; golf meetings new courses; golf meetings clubhouse facilities; destination guides: WI; Albuquerque, NM; Long Beach, CA
Economist (1/19): Boomers and housing market
Native American Casino (Jan): feature on the Dakota Dunes Casino
National Real Estate Investor (Jan): Atlantic City mixed-use dvt plans; Durham, NC redevelopment; Manhattan retail; apartment market; luxury condo market
Tradeshow Week (1/14): resort meeting market
Retail traffic (Jan): commercial mortgages and market conditions; premium outlets; brownfields into retail
Tradeshow Week (12/10): Gaylord launches new plans; tradeshow space rates up
Kiplinger Letter (1/11): housing market and economic trends
Friday, January 18, 2008
misc news
Shopping Center Business (Jan): Federal Realty and mixed-use/neighborhood centers; Vegas retail developments; creating great retail places
Golf Industry Report (4th quarter 2007): 2007 golf consumer profile; player development; round promotion
Golf Industry Report (4th quarter 2007): 2007 golf consumer profile; player development; round promotion
local/regional real estate news
Crain's Chicago Business (12/24/2007): Retail retrenchment; hotel room rates on the rise
New Orleans City Business (12/31/2007): LA economy bullish
San Diego Business Journal (1/7/2008): visitation rates and hotel occupancy forecasts for 2008; Chargers stadium saga continues
California Real Estate Journal (1/14/2008): green guidelines and industrial development; Sacramento K Street development; San Jose residential towers plan
California Real Estate Journal (1/7/2008): ports prospects and problems
Los Angeles Business Journal (1/14/2008): Dodger Stadium and the battle over public transit
Los Angeles Business Journal (1/7/2008): home prices and sales volumes down; film distributors list
Western City (Jan): sustainable cities
CP&DR (Jan): LEED standards for green construction; Marin County general plan; sustainability
New Orleans City Business (12/31/2007): LA economy bullish
San Diego Business Journal (1/7/2008): visitation rates and hotel occupancy forecasts for 2008; Chargers stadium saga continues
California Real Estate Journal (1/14/2008): green guidelines and industrial development; Sacramento K Street development; San Jose residential towers plan
California Real Estate Journal (1/7/2008): ports prospects and problems
Los Angeles Business Journal (1/14/2008): Dodger Stadium and the battle over public transit
Los Angeles Business Journal (1/7/2008): home prices and sales volumes down; film distributors list
Western City (Jan): sustainable cities
CP&DR (Jan): LEED standards for green construction; Marin County general plan; sustainability
China's blossoming economy hotel industry
from today's STR hotel news briefs (1/18/2008):
Economy Hotel Development Trends in Mainland China
By Li Chen and Fiona Fang -- HVS
"Since the first opened in 1997, economy hotels in mainland China have spread far and wide, filling a need for millions of business and leisure patrons seeking a convenient, economical, and increasingly comfortable place to rest.
Demand for Economy Hotels in Mainland China
China has become an important tourism destination in Asia and the fifth-largest tourism country in the world (measured in number of international tourist arrivals).[1] The inflow of foreign tourists runs beside a strengthening stream of domestic tourists, whose numbers reached nearly 1.4 billion in 2006. Domestic tourism alone generated US$781.9 billion last year, nearly 20 times the revenue of 2000." ...
[1] People's Daily online (http://english.peopledaily.com.cn/200211/21/eng20021121_107170.shtml)
for the complete story with charts
Economy Hotel Development Trends in Mainland China
By Li Chen and Fiona Fang -- HVS
"Since the first opened in 1997, economy hotels in mainland China have spread far and wide, filling a need for millions of business and leisure patrons seeking a convenient, economical, and increasingly comfortable place to rest.
Demand for Economy Hotels in Mainland China
China has become an important tourism destination in Asia and the fifth-largest tourism country in the world (measured in number of international tourist arrivals).[1] The inflow of foreign tourists runs beside a strengthening stream of domestic tourists, whose numbers reached nearly 1.4 billion in 2006. Domestic tourism alone generated US$781.9 billion last year, nearly 20 times the revenue of 2000." ...
[1] People's Daily online (http://english.peopledaily.com.cn/200211/21/eng20021121_107170.shtml)
for the complete story with charts
Tuesday, January 15, 2008
Chicago Olympics 2016?
from today's Crain's Chicago Business (1/15/2008)
Chicago details Olympic costs, hopes for 2016
By Greg Hinz
Jan. 15, 2008
"Crain’s) — City Hall Tuesday began to lift some of the financial veil which has shrouded Chicago’s bid to host the 2016 Summer Olympics.
Officials described an event that would cost $2 billion to house and provide a place for athletes to compete. At the same time, the games would take in a projected $2.5 billion in domestic sponsorship and ticket sales." ...
"Mr. Ryan said the city expects to spend about $900 million in 2007 dollars to build and/or revamp 27 new or temporary venues for different sports — roughly in the range that outside sports experts had expected.
The biggest chunk, $385.9 million, would go for construction of a stadium for opening and closing ceremonies in Washington Park in the mid-South Side.
Another $107 million would be needed for a new aquatic center, $80 million for a rowing course and $137 million for other temporary facilities, many of them to be located in or near McCormick Place and Northerly Island.
The cost of building an Olympic Village on air-rights over a parking lot just south of McCormick Place still is projected at $1.1 billion, Mr. Ryan said, but all costs will be born by an as yet unselected developer, who will be able to convert the village into market-rate condominiums and rental apartments after the games.
The city at this point was not required to disclose the projected operating budget for the 2016 games and did not do so.
But outside analysts say it easily could cost $3 billion to run the games on top of the roughly $2 billion the city now says it will need for construction.
To offset those costs, Mr. Ryan said the local organizers believe that Chicago games would pull in $2.5 billion in domestic revenues — not counting the city’s cut of income from international TV rights.
The biggest share of the $2.5 billion would be sponsorships, with 10 corporate partners providing an average of $110 million each and 52 others contributing about $10 million each for a total of $1.26 billion in projected corporate sponsorships.
An additional $705 million would come from sales of tickets, with the average price at $75 and 45% priced at under $50.
Other income would include $170 million from merchandising rights, and $143 million in income from the Paralympics, which would follow the Olympics by a few days.
Under questioning, Mr. Ryan conceded that Chicago apparently is projecting more local revenue than some other cities." ...
"“Our argument is not that [Chicago’s venues] are compact. It’s where they’re compact, in the heart of our city,” said Chicago 2016 Vice-President Doug Arnot. Another Chicago advantage is ethnic diversity, he said, something that was on display during the recent world boxing championships here when groups of immigrant Chicagoans from the Ukraine, Poland and other countries showed up to cheer on the team from their native countries.
Another feature of the Chicago bid is that the amount of construction of one-time facilities will be limited.
“There’s no white elephants,” Mr. Ryan said, a blight that has afflicted prior Olympics cities but something that international officials hope to avoid this time.
Assuming Chicago makes the short list in June, it will spend about $49 million for the final campaign, Mr. Ryan said, with the winner to be announced at a meeting in Copenhagen, Denmark in November, 2009."
for the complete story see:
http://chicagobusiness.com/cgi-bin/news.pl?id=27767
Chicago details Olympic costs, hopes for 2016
By Greg Hinz
Jan. 15, 2008
"Crain’s) — City Hall Tuesday began to lift some of the financial veil which has shrouded Chicago’s bid to host the 2016 Summer Olympics.
Officials described an event that would cost $2 billion to house and provide a place for athletes to compete. At the same time, the games would take in a projected $2.5 billion in domestic sponsorship and ticket sales." ...
"Mr. Ryan said the city expects to spend about $900 million in 2007 dollars to build and/or revamp 27 new or temporary venues for different sports — roughly in the range that outside sports experts had expected.
The biggest chunk, $385.9 million, would go for construction of a stadium for opening and closing ceremonies in Washington Park in the mid-South Side.
Another $107 million would be needed for a new aquatic center, $80 million for a rowing course and $137 million for other temporary facilities, many of them to be located in or near McCormick Place and Northerly Island.
The cost of building an Olympic Village on air-rights over a parking lot just south of McCormick Place still is projected at $1.1 billion, Mr. Ryan said, but all costs will be born by an as yet unselected developer, who will be able to convert the village into market-rate condominiums and rental apartments after the games.
The city at this point was not required to disclose the projected operating budget for the 2016 games and did not do so.
But outside analysts say it easily could cost $3 billion to run the games on top of the roughly $2 billion the city now says it will need for construction.
To offset those costs, Mr. Ryan said the local organizers believe that Chicago games would pull in $2.5 billion in domestic revenues — not counting the city’s cut of income from international TV rights.
The biggest share of the $2.5 billion would be sponsorships, with 10 corporate partners providing an average of $110 million each and 52 others contributing about $10 million each for a total of $1.26 billion in projected corporate sponsorships.
An additional $705 million would come from sales of tickets, with the average price at $75 and 45% priced at under $50.
Other income would include $170 million from merchandising rights, and $143 million in income from the Paralympics, which would follow the Olympics by a few days.
Under questioning, Mr. Ryan conceded that Chicago apparently is projecting more local revenue than some other cities." ...
"“Our argument is not that [Chicago’s venues] are compact. It’s where they’re compact, in the heart of our city,” said Chicago 2016 Vice-President Doug Arnot. Another Chicago advantage is ethnic diversity, he said, something that was on display during the recent world boxing championships here when groups of immigrant Chicagoans from the Ukraine, Poland and other countries showed up to cheer on the team from their native countries.
Another feature of the Chicago bid is that the amount of construction of one-time facilities will be limited.
“There’s no white elephants,” Mr. Ryan said, a blight that has afflicted prior Olympics cities but something that international officials hope to avoid this time.
Assuming Chicago makes the short list in June, it will spend about $49 million for the final campaign, Mr. Ryan said, with the winner to be announced at a meeting in Copenhagen, Denmark in November, 2009."
for the complete story see:
http://chicagobusiness.com/cgi-bin/news.pl?id=27767
Asian business climate worries
from CFOAsia (Dec-Jan 2008):
BUSINESS OUTLOOK SURVEY
Asia’s CFOs remain more optimistic than their U.S. and European counterparts,
but nerves are starting to fray.
By Cesar Bacani and Nan Wang
"When America sneezes, Asia catches a cold. This old saw was true enough in the last century, but it may be time for a revision.
In the latest Duke University/CFO magazine Business Outlook Survey, only 9 percent of CFOs in the United States are more optimistic about the U.S. economy than they were last quarter. In contrast, 53 percent of CFOs in Asia say they are more optimistic.
Why the difference? At least some of Asia’s finance executives believe that the region’s fortunes have now decoupled from America’s because of the economic rise of China and India, and the generally robust finances of governments, banks, corporations, and consumers." ...
"Still, the worries in the West are crossing over to Asia. Mingwei Bi, deputy finance controller at Chinese sportswear maker Anta, expects earnings to grow in the next 12 months because of the coming Summer Olympics. But he is concerned about rising inflation, a strong renminbi, and a 15 percent rise in labor costs at Anta." ...
"And the level of optimism among the region’s CFOs (outside of China) is six percentage points lower than last quarter, down 19 points from the quarter before that. Optimism among CFOs in China is down from 41 percent last quarter to 31 percent in the latest survey." ...
for the complete story see:
http://www.cfoasia.com/archives/200712-05.htm
********************************
IS THE PARTY OVER?
Some of the exuberance is winding down, but the region’s investment bankers are still working on a long queue of IPO, M&A, and other financing deals.
By Cesar BacanI
"When India’s ICICI Bank issued a US$750 million five-year bond in January of this year, it achieved a pricing of 174.8 basis points higher than similarly dated U.S. Treasuries. Not too shabby in an environment of abundant and cheap credit. Fast forward eight months. In September, ICICI again tapped the global debt markets with another five-year fixed rate note. This time, however, it had to accept an interest rate that was a whopping 237.5 basis points above U.S. Treasuries.
And this was during a relatively calm period after the first ructions in July over the sub-prime crisis in the United States, which had caused credit markets to seize up. Had ICICI held out for a better pricing, it might now be unable to raise capital at all. In November, Chinese property developer Country Garden pulled a US$1 billion global bond issue because virtually no investor in America was buying.
So is the party over in Asia? It looks like it for offshore debt financing and private-equity fueled leveraged buyouts, at least in the short term. A bank typically holds capital equivalent to 10 percent of its loan book, meaning that a dollar of capital can potentially translate into ten dollars in loans. When bank capital is reduced because of provisions for losses arising from the subprime crisis, the bank’s ability to lend is compromised. In all, banks worldwide are estimated to have made US$66 billion in provisions, in effect shrinking the pot for loans by US$660 billion.
But the fallout has been much less pronounced in Asia, and this is stoking optimism that the party will get going in this part of the world again." ...
"While selling global bonds and raising debt funding for leveraged buyouts may be a hard slog at the moment, the region’s investment bankers say Asia’s underlying growth story remains unimpaired. True, stock markets have come down sharply from record highs, which might discourage IPOs and follow-on offerings. But, argues an investment banker who handles equity syndicates: “Asia had an absolutely phenomenal year and investors are now taking a step back to ensure expectations are brought back into sync. The drinks are finished, and we’re just getting to the next round.”
The biggest deals in Asia in the past year have been outbound M&A, led by Tata Steel’s US$13.6 billion acquisition of Anglo-Dutch behemoth Corus. Figures compiled by Thomson Financial show that outward acquisitions in Asia (ex-Japan and ex-Australia) in the year to November have breached the US$84 billion mark, which is up 99 percent from the same period last year, and is nearly 12 times the total of 2003. Singapore-headquartered companies topped the cross-border buyers’ list with US$21.5 billion, followed by India with US$20.1 billion, and China with US$18.9 billion." ...
"The year has been replete with eye-popping transactions that made it to our shortlist, among them ABN Amro’s US$11.7 billion privatization of Malaysia’s Maxis, UBS’s US$7.2 billion acquisition of LG Card for Korea’s Shinhan, Citi’s US$5.9 billion IPO of China CITIC Bank, Goldman Sach’s US$1.7 billion float of China’s Alibaba.com, Morgan Stanley’s US$1.6 billion listing of Chinese developer Country Garden, and ABN Amro’s US$1.5 billion leveraged buyout of Singapore’s UTAC by two private-equity firms." ...
for the complete story see:
http://www.cfoasia.com/archives/200712-03.htm
BUSINESS OUTLOOK SURVEY
Asia’s CFOs remain more optimistic than their U.S. and European counterparts,
but nerves are starting to fray.
By Cesar Bacani and Nan Wang
"When America sneezes, Asia catches a cold. This old saw was true enough in the last century, but it may be time for a revision.
In the latest Duke University/CFO magazine Business Outlook Survey, only 9 percent of CFOs in the United States are more optimistic about the U.S. economy than they were last quarter. In contrast, 53 percent of CFOs in Asia say they are more optimistic.
Why the difference? At least some of Asia’s finance executives believe that the region’s fortunes have now decoupled from America’s because of the economic rise of China and India, and the generally robust finances of governments, banks, corporations, and consumers." ...
"Still, the worries in the West are crossing over to Asia. Mingwei Bi, deputy finance controller at Chinese sportswear maker Anta, expects earnings to grow in the next 12 months because of the coming Summer Olympics. But he is concerned about rising inflation, a strong renminbi, and a 15 percent rise in labor costs at Anta." ...
"And the level of optimism among the region’s CFOs (outside of China) is six percentage points lower than last quarter, down 19 points from the quarter before that. Optimism among CFOs in China is down from 41 percent last quarter to 31 percent in the latest survey." ...
for the complete story see:
http://www.cfoasia.com/archives/200712-05.htm
********************************
IS THE PARTY OVER?
Some of the exuberance is winding down, but the region’s investment bankers are still working on a long queue of IPO, M&A, and other financing deals.
By Cesar BacanI
"When India’s ICICI Bank issued a US$750 million five-year bond in January of this year, it achieved a pricing of 174.8 basis points higher than similarly dated U.S. Treasuries. Not too shabby in an environment of abundant and cheap credit. Fast forward eight months. In September, ICICI again tapped the global debt markets with another five-year fixed rate note. This time, however, it had to accept an interest rate that was a whopping 237.5 basis points above U.S. Treasuries.
And this was during a relatively calm period after the first ructions in July over the sub-prime crisis in the United States, which had caused credit markets to seize up. Had ICICI held out for a better pricing, it might now be unable to raise capital at all. In November, Chinese property developer Country Garden pulled a US$1 billion global bond issue because virtually no investor in America was buying.
So is the party over in Asia? It looks like it for offshore debt financing and private-equity fueled leveraged buyouts, at least in the short term. A bank typically holds capital equivalent to 10 percent of its loan book, meaning that a dollar of capital can potentially translate into ten dollars in loans. When bank capital is reduced because of provisions for losses arising from the subprime crisis, the bank’s ability to lend is compromised. In all, banks worldwide are estimated to have made US$66 billion in provisions, in effect shrinking the pot for loans by US$660 billion.
But the fallout has been much less pronounced in Asia, and this is stoking optimism that the party will get going in this part of the world again." ...
"While selling global bonds and raising debt funding for leveraged buyouts may be a hard slog at the moment, the region’s investment bankers say Asia’s underlying growth story remains unimpaired. True, stock markets have come down sharply from record highs, which might discourage IPOs and follow-on offerings. But, argues an investment banker who handles equity syndicates: “Asia had an absolutely phenomenal year and investors are now taking a step back to ensure expectations are brought back into sync. The drinks are finished, and we’re just getting to the next round.”
The biggest deals in Asia in the past year have been outbound M&A, led by Tata Steel’s US$13.6 billion acquisition of Anglo-Dutch behemoth Corus. Figures compiled by Thomson Financial show that outward acquisitions in Asia (ex-Japan and ex-Australia) in the year to November have breached the US$84 billion mark, which is up 99 percent from the same period last year, and is nearly 12 times the total of 2003. Singapore-headquartered companies topped the cross-border buyers’ list with US$21.5 billion, followed by India with US$20.1 billion, and China with US$18.9 billion." ...
"The year has been replete with eye-popping transactions that made it to our shortlist, among them ABN Amro’s US$11.7 billion privatization of Malaysia’s Maxis, UBS’s US$7.2 billion acquisition of LG Card for Korea’s Shinhan, Citi’s US$5.9 billion IPO of China CITIC Bank, Goldman Sach’s US$1.7 billion float of China’s Alibaba.com, Morgan Stanley’s US$1.6 billion listing of Chinese developer Country Garden, and ABN Amro’s US$1.5 billion leveraged buyout of Singapore’s UTAC by two private-equity firms." ...
for the complete story see:
http://www.cfoasia.com/archives/200712-03.htm
120-acres of mixed use planned for Orlando
from GlobeSt (1/14/2008)
Last updated: January 14, 2008 02:57pm
$32M, 120-Acre Land Buy Spurs MXD Project
By Natalie Keith
"ORLANDO-A joint venture of Alpharetta, GA-based Southeastern Investment Properties and Atlanta-based Hendon Properties LLC has acquired 120 acres of commercially zoned land on the northwest corner of the intersection of Beachline Expressway and Semoran Boulevard for $32 million." ...
"The joint venture, referred to as Orlando Gateway LLC, plans to create development opportunities on the property for uses compatible with Orlando’s AC-3 zoning. The zoning, which is the same as that of Orlando’s central business district, permits a wide range of uses, including high- or mid-rise office space, dense residential dwellings, hotels, restaurants and other commercial uses. Plans call for building at least two hotels, up to 1,200 apartment units, 200,000 sf of office space and 140,000 sf of retail and restaurant space." ....
for the complete story see:
http://www.globest.com/news/1073_1073/orlando/167449-1.html
Last updated: January 14, 2008 02:57pm
$32M, 120-Acre Land Buy Spurs MXD Project
By Natalie Keith
"ORLANDO-A joint venture of Alpharetta, GA-based Southeastern Investment Properties and Atlanta-based Hendon Properties LLC has acquired 120 acres of commercially zoned land on the northwest corner of the intersection of Beachline Expressway and Semoran Boulevard for $32 million." ...
"The joint venture, referred to as Orlando Gateway LLC, plans to create development opportunities on the property for uses compatible with Orlando’s AC-3 zoning. The zoning, which is the same as that of Orlando’s central business district, permits a wide range of uses, including high- or mid-rise office space, dense residential dwellings, hotels, restaurants and other commercial uses. Plans call for building at least two hotels, up to 1,200 apartment units, 200,000 sf of office space and 140,000 sf of retail and restaurant space." ....
for the complete story see:
http://www.globest.com/news/1073_1073/orlando/167449-1.html
Fairmont Palm Springs coming
from today's STR news briefs (1/15/2008):
Fairmont Hotel & Resorts to Fly Its Flag at Avanterra Palm Desert
Renaissance Community to Include Luxury Hotel, Branded Residences and Private Residence Club Homes
"PALM DESERT, CA | Cementing its credentials as a world-class resort destination, Avanterra will be home to the luxurious new Fairmont Avanterra, Palm Desert when the internationally renowned hotelier comes to the Coachella Valley in 2011. The expansive hotel project, which includes Fairmont’s luxury branded residences and fractional private residence club homes, will be situated adjacent to the Classic Club golf course, site of the PGA Tour’s Bob Hope Chrysler Classic.
Representatives from Fairmont and Delfino Resorts made the announcement at a press conference held prior to start of the 2008 Bob Hope Chrysler Classic. The development consortium behind Avanterra, a $2.5 billion environmentally progressive, master-planned community, is best known for its signature Delfino resort communities along America’s Gulf Coast region.
The move marks Fairmont’s first entry into the Palm Springs market, and gives the region an iconic luxury brand favored by discerning business and leisure travelers across the globe. Initially, the hotel development will offer 300 rooms and 125 Fairmont Residences, Fairmont Gold concierge rooms and lounge, a variety of dining outlets, 26,000 square feet of indoor function space including a 7,000 square foot ballroom as well as outdoor event areas, and a 45,000 square foot Willow Stream Spa. In phase two Avanterra will also feature Fairmont Heritage Place, the company’s private residence club homes, as well as additional Fairmont Residences." ...
"It is expected that ground for the initial phase will be broken on the nearly $200 million project in 2009. When completed, the Fairmont Avanterra, Palm Desert will establish its presence alongside the Classic Club, opposite Avanterra’s pedestrian oriented village, which will include close to one million square feet of experiential retail space, integrated work lofts, LEED certified office buildings, condominiums, amphitheater, park space, planetarium, walking trails and more. Avanterra’s master plan is a veritable blueprint for the future of desert living, and of sustainable development across California and elsewhere."
for the complete story see:
http://www.smithtravelresearch.com/smithtravelresearch/news/
findnewsarticle.aspx?article=26472
Fairmont Hotel & Resorts to Fly Its Flag at Avanterra Palm Desert
Renaissance Community to Include Luxury Hotel, Branded Residences and Private Residence Club Homes
"PALM DESERT, CA | Cementing its credentials as a world-class resort destination, Avanterra will be home to the luxurious new Fairmont Avanterra, Palm Desert when the internationally renowned hotelier comes to the Coachella Valley in 2011. The expansive hotel project, which includes Fairmont’s luxury branded residences and fractional private residence club homes, will be situated adjacent to the Classic Club golf course, site of the PGA Tour’s Bob Hope Chrysler Classic.
Representatives from Fairmont and Delfino Resorts made the announcement at a press conference held prior to start of the 2008 Bob Hope Chrysler Classic. The development consortium behind Avanterra, a $2.5 billion environmentally progressive, master-planned community, is best known for its signature Delfino resort communities along America’s Gulf Coast region.
The move marks Fairmont’s first entry into the Palm Springs market, and gives the region an iconic luxury brand favored by discerning business and leisure travelers across the globe. Initially, the hotel development will offer 300 rooms and 125 Fairmont Residences, Fairmont Gold concierge rooms and lounge, a variety of dining outlets, 26,000 square feet of indoor function space including a 7,000 square foot ballroom as well as outdoor event areas, and a 45,000 square foot Willow Stream Spa. In phase two Avanterra will also feature Fairmont Heritage Place, the company’s private residence club homes, as well as additional Fairmont Residences." ...
"It is expected that ground for the initial phase will be broken on the nearly $200 million project in 2009. When completed, the Fairmont Avanterra, Palm Desert will establish its presence alongside the Classic Club, opposite Avanterra’s pedestrian oriented village, which will include close to one million square feet of experiential retail space, integrated work lofts, LEED certified office buildings, condominiums, amphitheater, park space, planetarium, walking trails and more. Avanterra’s master plan is a veritable blueprint for the future of desert living, and of sustainable development across California and elsewhere."
for the complete story see:
http://www.smithtravelresearch.com/smithtravelresearch/news/
findnewsarticle.aspx?article=26472
Monday, January 14, 2008
Mohawks sue for casino rights
from this afternoon's GlobeSt (1/14/2008):
UPDATE Last updated: January 14, 2008 12:05pm
St. Regis Mohawks Sue Over Casino Decision
By John Jordan
"MONTICELLO, NY-Officials with the St. Regis Mohawk Tribe issued some hot responses earlier this month to Interior Secretary Dirk Kempthorne’s denial of a land into trust application for its proposed $600-million gaming facility at Monticello Raceway here. They are now keeping the heat on by filing a lawsuit seeking to reverse the ruling.
The St. Regis Mohawk Tribe and its development partner Empire Resorts Inc. of Las Vegas jointly revealed on Friday that the tribe filed a lawsuit against the Department of Interior and Secretary Kempthorne and others in US District Court in New York City. Officials with the tribe promised a lawsuit would be forthcoming after it received a letter from the Department of Interior on Jan. 4 rejecting its application, killing its casino plan unless a court or a new administration decide to reverse the ruling." ...
"Earlier this month Secretary Kempthorne sent out 11 denial letters to Indian Tribes seeking land into trust application approvals for gaming facilities across the US, including three tribes in New York State--the St. Regis Mohawk Tribe, the Stockbridge-Munsee Band of Mohicans and the Seneca-Cayuga Tribe. The Stockbridge Munsee Band of Mohicans is seeking to build a casino in Sullivan County, while the Seneca-Cayuga Tribe wants to build a gaming facility in Cayuga County. Kempthorne denied the applications stating that the gaming sites were too far from the tribes’ respective reservations." ...
"Empire Resorts officials add that in addition to the lawsuit, the St. Regis Mohawk Tribe is in discussions with other tribes to explore additional legal action and as well as calling for oversight hearings by the House Natural Resources Committee and the Senate Select Committee on Indian Affairs......."
for the complete story see:
http://www.globest.com/news/1072_1072/westchester/1674
42-1.html
UPDATE Last updated: January 14, 2008 12:05pm
St. Regis Mohawks Sue Over Casino Decision
By John Jordan
"MONTICELLO, NY-Officials with the St. Regis Mohawk Tribe issued some hot responses earlier this month to Interior Secretary Dirk Kempthorne’s denial of a land into trust application for its proposed $600-million gaming facility at Monticello Raceway here. They are now keeping the heat on by filing a lawsuit seeking to reverse the ruling.
The St. Regis Mohawk Tribe and its development partner Empire Resorts Inc. of Las Vegas jointly revealed on Friday that the tribe filed a lawsuit against the Department of Interior and Secretary Kempthorne and others in US District Court in New York City. Officials with the tribe promised a lawsuit would be forthcoming after it received a letter from the Department of Interior on Jan. 4 rejecting its application, killing its casino plan unless a court or a new administration decide to reverse the ruling." ...
"Earlier this month Secretary Kempthorne sent out 11 denial letters to Indian Tribes seeking land into trust application approvals for gaming facilities across the US, including three tribes in New York State--the St. Regis Mohawk Tribe, the Stockbridge-Munsee Band of Mohicans and the Seneca-Cayuga Tribe. The Stockbridge Munsee Band of Mohicans is seeking to build a casino in Sullivan County, while the Seneca-Cayuga Tribe wants to build a gaming facility in Cayuga County. Kempthorne denied the applications stating that the gaming sites were too far from the tribes’ respective reservations." ...
"Empire Resorts officials add that in addition to the lawsuit, the St. Regis Mohawk Tribe is in discussions with other tribes to explore additional legal action and as well as calling for oversight hearings by the House Natural Resources Committee and the Senate Select Committee on Indian Affairs......."
for the complete story see:
http://www.globest.com/news/1072_1072/westchester/1674
42-1.html
AECOM buys The Services Group, starts Intl Dvt Group
from this morning's Los Angeles Business Journal (1/14/2008):
Aecom Buys Firm, Starts New Sector
By ALLEN P. ROBERTS Jr. - 1/14/2008
Los Angeles Business Journal Staff
"Aecom Technology Corp. said Monday that it has acquired Arlington, Va.-based development services firm The Services Group for an undisclosed sum.
The Los Angeles-based consulting firm said that the addition of the company will prompt Aecom to create a sector that will focus on acquiring international contracts. The new business will be called Aecom International Development.
The new sector will have its headquarters in Washington, D.C., and will specialize in providing support services in emerging markets around the globe, Aecom said in a statement. Aecom said the new unit will employ more than 400." ...
for the complete story see:
http://labusinessjournal.com/enews_article.asp?aID=9509014
6.819617.1574989.943657.5914953.560&aID2=121144&lid=3
3&sid=&cID=Z
Aecom Buys Firm, Starts New Sector
By ALLEN P. ROBERTS Jr. - 1/14/2008
Los Angeles Business Journal Staff
"Aecom Technology Corp. said Monday that it has acquired Arlington, Va.-based development services firm The Services Group for an undisclosed sum.
The Los Angeles-based consulting firm said that the addition of the company will prompt Aecom to create a sector that will focus on acquiring international contracts. The new business will be called Aecom International Development.
The new sector will have its headquarters in Washington, D.C., and will specialize in providing support services in emerging markets around the globe, Aecom said in a statement. Aecom said the new unit will employ more than 400." ...
for the complete story see:
http://labusinessjournal.com/enews_article.asp?aID=9509014
6.819617.1574989.943657.5914953.560&aID2=121144&lid=3
3&sid=&cID=Z
La Quinta's SilverRock Resort debuts with PGA's Bob Hope Classic
from today's Desert Sun (1/14/2008):
SilverRock debuts at Bob Hope Chrysler Classic
By Larry Bohannan
The Desert Sun
"LA QUINTA - After two years of delays, renovations, rejections by the PGA Tour and escalating costs 50 percent more than its initial $10 million estimate, Mayor Don Adolph of La Quinta is excited SilverRock Resort will debut this week in the Bob Hope Chrysler Classic." ...
"SilverRock, the city-owned and developed layout, will debut in the Hope on Wednesday, one of four courses in the $5.1 million tournament's rotation that will be televised nationally on The Golf Channel. But that debut comes only after cost overruns and unanticipated renovations have pushed the SilverRock course's cost to more than $15 million, 50 percent higher than initial projections.
The additional money, from city redevelopment funds, was required in part by course changes the PGA Tour demanded before it would let the course join the Hope rotation." ...
"The changes began when the council approved $1.4 million in work in the summer of 2005 after flooding and erosion problems from uncharacteristic heavy rains earlier in the year. That money went toward improved drainage on the course, additional landscaping, installation of a drainage pipe to divert flood waters along Avenue 52 and additional workers.
Another $600,000 was approved in August 2006 for decomposed granite to cover and stabilize 40 acres of desert, a specific request by the tour. As recently as last month, the council approved $80,000 to repair wind damage to bunkers and downed trees.
"It just seems every time the council meets, they are voting more money for that golf course," said Steve Simpson, 53 and a part-time La Quinta resident. "I know the golf tournament is a big deal, but is it worth what the city is spending?"
That is a question many city taxpayers have asked city hall officials.
Adolph and others have always insisted the tournament is only part of the long-term SilverRock plan to promote the golf course and attract tax revenue through hotels and retail spending. One year ago, the city signed a $550 million deal with Lowe Destination Development to bring a hotel, boutique hotel and retail development to the property." ...
for the complete story see:
http://www.mydesert.com/apps/pbcs.dll/article?AID=/20080114/N
EWS01/80114010&referrer=FRONTPAGECAROUSEL#pluckcomments
SilverRock debuts at Bob Hope Chrysler Classic
By Larry Bohannan
The Desert Sun
"LA QUINTA - After two years of delays, renovations, rejections by the PGA Tour and escalating costs 50 percent more than its initial $10 million estimate, Mayor Don Adolph of La Quinta is excited SilverRock Resort will debut this week in the Bob Hope Chrysler Classic." ...
"SilverRock, the city-owned and developed layout, will debut in the Hope on Wednesday, one of four courses in the $5.1 million tournament's rotation that will be televised nationally on The Golf Channel. But that debut comes only after cost overruns and unanticipated renovations have pushed the SilverRock course's cost to more than $15 million, 50 percent higher than initial projections.
The additional money, from city redevelopment funds, was required in part by course changes the PGA Tour demanded before it would let the course join the Hope rotation." ...
"The changes began when the council approved $1.4 million in work in the summer of 2005 after flooding and erosion problems from uncharacteristic heavy rains earlier in the year. That money went toward improved drainage on the course, additional landscaping, installation of a drainage pipe to divert flood waters along Avenue 52 and additional workers.
Another $600,000 was approved in August 2006 for decomposed granite to cover and stabilize 40 acres of desert, a specific request by the tour. As recently as last month, the council approved $80,000 to repair wind damage to bunkers and downed trees.
"It just seems every time the council meets, they are voting more money for that golf course," said Steve Simpson, 53 and a part-time La Quinta resident. "I know the golf tournament is a big deal, but is it worth what the city is spending?"
That is a question many city taxpayers have asked city hall officials.
Adolph and others have always insisted the tournament is only part of the long-term SilverRock plan to promote the golf course and attract tax revenue through hotels and retail spending. One year ago, the city signed a $550 million deal with Lowe Destination Development to bring a hotel, boutique hotel and retail development to the property." ...
for the complete story see:
http://www.mydesert.com/apps/pbcs.dll/article?AID=/20080114/N
EWS01/80114010&referrer=FRONTPAGECAROUSEL#pluckcomments
LV casino revenue down
from this morning's GlobeSt (1/14/2008):
Last updated: January 14, 2008 08:56am
Big Dip in Strip Casino Revenue
By Brian K. Miller
"LAS VEGAS-Casinos on the Las Vegas Strip won $519.7 million from gamblers in November, 19% less than they did the same month one year earlier, the Nevada Gaming Control Board said on Friday. Statewide, casino revenue fell 14% to $981.1 million, the largest year-over-year decline since January 2002, according to UBS Investment Research.
The declines were offset by a 20% increase in Strip gambling revenue in October and the fact that gambling revenue from November 2006 was 22% higher than November 2005. Casinos stocks fell on Friday, as did the Dow Jones Industrial Average.
Visitor statistics for November have not yet been released. In October, visitation was essentially unchanged from the previous October at 3.4 million. Year-to-date, visitation is up 0.8%, Strip gaming revenue is up 2.49% and statewide gaming revenue is up 1.43%.
In Clark County as a whole, gaming revenue fell 16.26% in November, but remained up 2% for the year." .....
for the complete story see:
http://www.globest.com/news/1072_1072/lasvegas/167426-1.html
Last updated: January 14, 2008 08:56am
Big Dip in Strip Casino Revenue
By Brian K. Miller
"LAS VEGAS-Casinos on the Las Vegas Strip won $519.7 million from gamblers in November, 19% less than they did the same month one year earlier, the Nevada Gaming Control Board said on Friday. Statewide, casino revenue fell 14% to $981.1 million, the largest year-over-year decline since January 2002, according to UBS Investment Research.
The declines were offset by a 20% increase in Strip gambling revenue in October and the fact that gambling revenue from November 2006 was 22% higher than November 2005. Casinos stocks fell on Friday, as did the Dow Jones Industrial Average.
Visitor statistics for November have not yet been released. In October, visitation was essentially unchanged from the previous October at 3.4 million. Year-to-date, visitation is up 0.8%, Strip gaming revenue is up 2.49% and statewide gaming revenue is up 1.43%.
In Clark County as a whole, gaming revenue fell 16.26% in November, but remained up 2% for the year." .....
for the complete story see:
http://www.globest.com/news/1072_1072/lasvegas/167426-1.html
OC gets a W
from today's Orange County Business Journal news brief (1/14/2008)
Makar Lands W Hotel for Huntington Beach Project
By Sandi Cain - 1/14/2008
Orange County Business Journal Staff
"Newport Beach-based developer Makar Properties LLC has landed a W hotel—the first in the county for Starwood Hotels & Resorts Worldwide Inc.’s boutique chain—for its Pacific City project in Huntington Beach.
The hotel will be the centerpiece of Pacific City, a 30-acre development that will include condominiums, shops and restaurants set to start construction next year." ...
"Plans for the hotel call for 250 rooms and suites and 11,000 square feet of meeting space, according to Makar. The nine-story hotel also is set to have a spa, fitness center, restaurant, cafe and bars. Two outdoor pools are planned.
The hotel is expected to open in 2010. It will be fifth W in California and the 22nd overall for the chic brand.
Makar, which also owns the St. Regis Resort, Monarch Beach, Hilton Anaheim and Wyndham Orange County, plans to include 92 condominiums that buyers would own outright—not timeshares—and have access to hotel services and amenities." ...
"The W is set to join the 157-room boutique Shorebreak Hotel set to open in the first half of 2008 at the Strand project in Huntington Beach, developed by Los Angeles-based CIM Group. That hotel will be run by Joie de Vivre Hospitality of San Francisco, a pioneer in boutique hotels.
Pacific City, billed as a mix of “SoHo hip, South Beach cool and Rodeo Drive luxury,” is set to include shops, restaurants, entertainment venues, offices and homes on Pacific Coast Highway south of the Huntington Beach Pier.
The project is estimated at $750 million.
Huntington Beach approved the project in 2004. It will have 191,100 square feet of retail and office space and 48,900 square feet of restaurant space."
for the complete story see:
http://www.ocbj.com/enews_article.asp?aID=569000202.1090662
.1574625.775993.4924367.628&aID2=121116&lid=45&sid=&cID=Z
Makar Lands W Hotel for Huntington Beach Project
By Sandi Cain - 1/14/2008
Orange County Business Journal Staff
"Newport Beach-based developer Makar Properties LLC has landed a W hotel—the first in the county for Starwood Hotels & Resorts Worldwide Inc.’s boutique chain—for its Pacific City project in Huntington Beach.
The hotel will be the centerpiece of Pacific City, a 30-acre development that will include condominiums, shops and restaurants set to start construction next year." ...
"Plans for the hotel call for 250 rooms and suites and 11,000 square feet of meeting space, according to Makar. The nine-story hotel also is set to have a spa, fitness center, restaurant, cafe and bars. Two outdoor pools are planned.
The hotel is expected to open in 2010. It will be fifth W in California and the 22nd overall for the chic brand.
Makar, which also owns the St. Regis Resort, Monarch Beach, Hilton Anaheim and Wyndham Orange County, plans to include 92 condominiums that buyers would own outright—not timeshares—and have access to hotel services and amenities." ...
"The W is set to join the 157-room boutique Shorebreak Hotel set to open in the first half of 2008 at the Strand project in Huntington Beach, developed by Los Angeles-based CIM Group. That hotel will be run by Joie de Vivre Hospitality of San Francisco, a pioneer in boutique hotels.
Pacific City, billed as a mix of “SoHo hip, South Beach cool and Rodeo Drive luxury,” is set to include shops, restaurants, entertainment venues, offices and homes on Pacific Coast Highway south of the Huntington Beach Pier.
The project is estimated at $750 million.
Huntington Beach approved the project in 2004. It will have 191,100 square feet of retail and office space and 48,900 square feet of restaurant space."
for the complete story see:
http://www.ocbj.com/enews_article.asp?aID=569000202.1090662
.1574625.775993.4924367.628&aID2=121116&lid=45&sid=&cID=Z
San Diego port development plan
from San Diego Business Journal news brief 1/14/2008:
Port OKs New Cruise Terminal, Two Hotels on the Embarcadero
By MIKE ALLEN - 1/14/2008
"It’s taken about a decade, but the first steps in a plan to renovate San Diego’s downtown waterfront are happening.
Last week, the San Diego Unified Port District approved two projects at the epicenter of the city’s Embarcadero: a dual hotel complex at Lane Field estimated to cost $400 million, and a cruise ship terminal at the Broadway Pier that has increased to more than $23 million.
The first project entails building two hotels with a combined 800 rooms and about 80,000 square feet of retail, restaurants and public parking on 5.7 acres located at Harbor Drive between B Street and Broadway.
The larger hotel, operated by the InterContinental Hotels Group, would stand 22 stories, contain 525 rooms and about 50,000 square feet of restaurants and retail uses. The second hotel, operated by Woodfin Suite Hotels LLC, would stand 13 stories high, have 275 rooms, and about 30,000 square feet of restaurants and retail space.
The complex also contains a 1,330-car underground parking garage, plus open spaces and terraces accessible through outside elevators that are part of both hotels." ...
"The projects approved last week are part of a larger plan to revitalize the downtown waterfront and make it a more appealing place for people to visit.
That plan, called the North Embarcadero Visionary Plan, was adopted in 1997 by five agencies: the port; the city of San Diego; Centre City Development Corp., the city’s downtown redevelopment agency; the county of San Diego; and the U.S. Navy." ...
"The development team on the Lane Field project is made up of Hardage Suite Hotels LLC, Lankford & Associates Inc., Phelps Development Co. of Greeley, Colo., and C.W. Clark Inc. The announced construction cost is about $400 million. The project is expected to create 2,000 hotel jobs and 500 temporary construction jobs, and the estimated hotel taxes generated from the hotels in the first year is $5.4 million, developers say." ...
"Port commissioners also unanimously approved a development permit for a new cruise ship terminal at the Broadway Pier. The terminal was initially supposed to serve only a few years, and accommodate the increasing number of cruise ships stopping here while work on a more elaborate cruise ship terminal at the B Street Pier got under way this year." ...
for the complete story (including all the fights) see:
http://sdbj.com/enews_article.asp?aID=67719965.6756908.15740
66.9403769.4065116.665&aID2=121073&lid=30&sid=&cID=Z
Port OKs New Cruise Terminal, Two Hotels on the Embarcadero
By MIKE ALLEN - 1/14/2008
"It’s taken about a decade, but the first steps in a plan to renovate San Diego’s downtown waterfront are happening.
Last week, the San Diego Unified Port District approved two projects at the epicenter of the city’s Embarcadero: a dual hotel complex at Lane Field estimated to cost $400 million, and a cruise ship terminal at the Broadway Pier that has increased to more than $23 million.
The first project entails building two hotels with a combined 800 rooms and about 80,000 square feet of retail, restaurants and public parking on 5.7 acres located at Harbor Drive between B Street and Broadway.
The larger hotel, operated by the InterContinental Hotels Group, would stand 22 stories, contain 525 rooms and about 50,000 square feet of restaurants and retail uses. The second hotel, operated by Woodfin Suite Hotels LLC, would stand 13 stories high, have 275 rooms, and about 30,000 square feet of restaurants and retail space.
The complex also contains a 1,330-car underground parking garage, plus open spaces and terraces accessible through outside elevators that are part of both hotels." ...
"The projects approved last week are part of a larger plan to revitalize the downtown waterfront and make it a more appealing place for people to visit.
That plan, called the North Embarcadero Visionary Plan, was adopted in 1997 by five agencies: the port; the city of San Diego; Centre City Development Corp., the city’s downtown redevelopment agency; the county of San Diego; and the U.S. Navy." ...
"The development team on the Lane Field project is made up of Hardage Suite Hotels LLC, Lankford & Associates Inc., Phelps Development Co. of Greeley, Colo., and C.W. Clark Inc. The announced construction cost is about $400 million. The project is expected to create 2,000 hotel jobs and 500 temporary construction jobs, and the estimated hotel taxes generated from the hotels in the first year is $5.4 million, developers say." ...
"Port commissioners also unanimously approved a development permit for a new cruise ship terminal at the Broadway Pier. The terminal was initially supposed to serve only a few years, and accommodate the increasing number of cruise ships stopping here while work on a more elaborate cruise ship terminal at the B Street Pier got under way this year." ...
for the complete story (including all the fights) see:
http://sdbj.com/enews_article.asp?aID=67719965.6756908.15740
66.9403769.4065116.665&aID2=121073&lid=30&sid=&cID=Z
Cirque du Soleil in San Diego
from today's San Diego Business Journal news brief:
Big Top Rises at Del Mar Fairgrounds for Cirque’s Latest Acts
By LIZ WIEDEMANN - 1/14/2008
"The Cirque du Soleil likes San Diego.
One reason is strong ticket sales, according to Heather Riley, general manager for Cirque du Soleil’s Corteo.
“Our 22,000-square-foot tent gets great visibility from Interstate 5 at the Del Mar Fairgrounds, which prompts more interest and sales,” Riley said." ...
"She says the tent’s 2,700 seats will not sell out for every show until after the premier, but the goal of 100,000 tickets sold will likely be achieved quickly, she said.
While the cast and crew of shows are permanent employees of Cirque, the company contracts both a general and specialized technical labor force.
“Locally, we’ve hired about 100 people before Corteo is set to begin, and we typically double that staff after the show starts,” Riley said." ...
"Riley says that in temporary labor alone Corteo should account for more than a half a million dollars in local labor payroll." ...
"Internationally, the business has more than 3,800 employees, including nearly 1,000 artists. At Cirque’s 1984 inception, 73 people worked for the company.
Cirque du Soleil has not received grants from the public or private sectors since 1992, and the touring shows have made nearly 250 stops in over 100 cities worldwide since it began." ...
for the complete article see:
http://sdbj.com/enews_article.asp?aID=37720015.778459.157431
3.5737227.9315229.484&aID2=121092&lid=30&sid=&cID=Z
Big Top Rises at Del Mar Fairgrounds for Cirque’s Latest Acts
By LIZ WIEDEMANN - 1/14/2008
"The Cirque du Soleil likes San Diego.
One reason is strong ticket sales, according to Heather Riley, general manager for Cirque du Soleil’s Corteo.
“Our 22,000-square-foot tent gets great visibility from Interstate 5 at the Del Mar Fairgrounds, which prompts more interest and sales,” Riley said." ...
"She says the tent’s 2,700 seats will not sell out for every show until after the premier, but the goal of 100,000 tickets sold will likely be achieved quickly, she said.
While the cast and crew of shows are permanent employees of Cirque, the company contracts both a general and specialized technical labor force.
“Locally, we’ve hired about 100 people before Corteo is set to begin, and we typically double that staff after the show starts,” Riley said." ...
"Riley says that in temporary labor alone Corteo should account for more than a half a million dollars in local labor payroll." ...
"Internationally, the business has more than 3,800 employees, including nearly 1,000 artists. At Cirque’s 1984 inception, 73 people worked for the company.
Cirque du Soleil has not received grants from the public or private sectors since 1992, and the touring shows have made nearly 250 stops in over 100 cities worldwide since it began." ...
for the complete article see:
http://sdbj.com/enews_article.asp?aID=37720015.778459.157431
3.5737227.9315229.484&aID2=121092&lid=30&sid=&cID=Z
Friday, January 11, 2008
Lehigh Valley, PA industrial development
from GobeSt.com (1/11)
UPDATE Last updated: January 11, 2008 09:36am
Higgins’ Eastern PA Strategy Tops $100M
By Marita Thomas
"LEHIGH VALLEY, PA-Chicago-based Higgins Development Partners’ development spree throughout Eastern Pennsylvania is far from over. Having completed more than 1.9 million sf of warehouse distribution space at four buildings between Harrisburg and the Lehigh Valley in 2007, it looks to add another 1.4 million sf in Coolbaugh Township and has a Carlisle site under contract that can accommodate in excess of 500,000 sf.
The development cost comes in at about $50 per sf, according to Gene Preston, SVP, who is located in the company’s Morristown, NJ office. That puts its 2007 investment at about $100 million he tells GlobeSt.com. The 85.5-acre Coolbaugh site Arcadia North Business Park, which Higgins acquired for $14 million, would add another investment of approximately $28 million. The close of the Carlisle land deal would ratchet that up by an additional $10 million." ...
"The asking rate at the 602,000-sf facility at 1700 Ritner Hwy. in Carlisle is also $4.25 per sf. The asking rate for the 385,000-sf warehouse/distribution building in Arcardia West Industrial Park at 9747 Commerce Circle in Weisenberg Township moves up a notch to $4.50 per sf. It is designed as a single-tenant or multi-tenant facility, and Preston says, “we’re closing in on a deal. It could be one or two tenants.” Groundbreaking on the large Coolbaugh parcel awaits a build-to-suit client. “We’ve had a number of expressions of interest,” Preston says."
for the complete story see:
http://www.globest.com/news/1071_1071/philadelphia/1673
65-1.html
UPDATE Last updated: January 11, 2008 09:36am
Higgins’ Eastern PA Strategy Tops $100M
By Marita Thomas
"LEHIGH VALLEY, PA-Chicago-based Higgins Development Partners’ development spree throughout Eastern Pennsylvania is far from over. Having completed more than 1.9 million sf of warehouse distribution space at four buildings between Harrisburg and the Lehigh Valley in 2007, it looks to add another 1.4 million sf in Coolbaugh Township and has a Carlisle site under contract that can accommodate in excess of 500,000 sf.
The development cost comes in at about $50 per sf, according to Gene Preston, SVP, who is located in the company’s Morristown, NJ office. That puts its 2007 investment at about $100 million he tells GlobeSt.com. The 85.5-acre Coolbaugh site Arcadia North Business Park, which Higgins acquired for $14 million, would add another investment of approximately $28 million. The close of the Carlisle land deal would ratchet that up by an additional $10 million." ...
"The asking rate at the 602,000-sf facility at 1700 Ritner Hwy. in Carlisle is also $4.25 per sf. The asking rate for the 385,000-sf warehouse/distribution building in Arcardia West Industrial Park at 9747 Commerce Circle in Weisenberg Township moves up a notch to $4.50 per sf. It is designed as a single-tenant or multi-tenant facility, and Preston says, “we’re closing in on a deal. It could be one or two tenants.” Groundbreaking on the large Coolbaugh parcel awaits a build-to-suit client. “We’ve had a number of expressions of interest,” Preston says."
for the complete story see:
http://www.globest.com/news/1071_1071/philadelphia/1673
65-1.html
Legoland expansion plans and attendance
from the San Diego Business Journal (1/10):
With $20M Expansion, Legoland Works to Beat 2007 Attendance
By - 1/10/2008
San Diego Business Journal Staff
"Legoland California Dec. 10 reported attendance of 1.6 million for 2007, which was flat with 2006, a record year." ...
"In March, the park expanded Miniland U.S.A. with the opening of Miniland Las Vegas and this year it is investing $20 million in two new areas. They include the Land of Adventure, which will feature a ride that simulates desert Jeeps trekking into “1920s Egypt,” he said.
Also new to the 128-acre park is the 36,000-square-foot Sea Life aquarium, which is scheduled open in the summer. It is under construction near the park’s main entrance and will have a separate admission.
Merlin Entertainments acquired all four of the world’s Legoland parks in 2005 and has since become the largest attractions operator in Europe and ranks second worldwide with 52 attractions."
— Connie Lewis
for the complete story see:
http://sdbj.com/enews_article.asp?aID=000190102.1480784.1573
650.673849.19098103.727&aID2=121041&lid=30&sid=&cID=Z
With $20M Expansion, Legoland Works to Beat 2007 Attendance
By - 1/10/2008
San Diego Business Journal Staff
"Legoland California Dec. 10 reported attendance of 1.6 million for 2007, which was flat with 2006, a record year." ...
"In March, the park expanded Miniland U.S.A. with the opening of Miniland Las Vegas and this year it is investing $20 million in two new areas. They include the Land of Adventure, which will feature a ride that simulates desert Jeeps trekking into “1920s Egypt,” he said.
Also new to the 128-acre park is the 36,000-square-foot Sea Life aquarium, which is scheduled open in the summer. It is under construction near the park’s main entrance and will have a separate admission.
Merlin Entertainments acquired all four of the world’s Legoland parks in 2005 and has since become the largest attractions operator in Europe and ranks second worldwide with 52 attractions."
— Connie Lewis
for the complete story see:
http://sdbj.com/enews_article.asp?aID=000190102.1480784.1573
650.673849.19098103.727&aID2=121041&lid=30&sid=&cID=Z
Kiev hotel boom
From Hotels newswire (1/11):
Ukraine General Newswire
January 11, 2008 Friday 5:14 PM MSK
Kyiv to build 33 hotels by time of Euro-2012
"Kyiv is to have 33 new hotels by the start of the Euro-2012, the city administration said on Friday.
In particular, nine new hotels will host their first clients in 2008, and seven new hotels, including one five-star hotel, will open in 2009.
At least 17 hotels will be built and commissioned in 2010 and 2011, the city administration said.
At present, there are 122 hotel industry facilities in Kyiv with 9,203 rooms able to host 16,136 customers, including three five-star hotels with 661 rooms, and nine four-star hotels with 1,204." ....
for the complete story see:
http://www6.lexisnexis.com/publisher/EndUser?Action=UserDis
playFullDocument&orgId=616&topicId=12552&docId=l:727189894&s
tart=7&nid=3457
Ukraine General Newswire
January 11, 2008 Friday 5:14 PM MSK
Kyiv to build 33 hotels by time of Euro-2012
"Kyiv is to have 33 new hotels by the start of the Euro-2012, the city administration said on Friday.
In particular, nine new hotels will host their first clients in 2008, and seven new hotels, including one five-star hotel, will open in 2009.
At least 17 hotels will be built and commissioned in 2010 and 2011, the city administration said.
At present, there are 122 hotel industry facilities in Kyiv with 9,203 rooms able to host 16,136 customers, including three five-star hotels with 661 rooms, and nine four-star hotels with 1,204." ....
for the complete story see:
http://www6.lexisnexis.com/publisher/EndUser?Action=UserDis
playFullDocument&orgId=616&topicId=12552&docId=l:727189894&s
tart=7&nid=3457
Vegas Hard Rock plans
From the Las Vegas Review-Journal (1/10)
Hard Rock Hotel owners go forward
Partners win board's recommendation
By ARNOLD M. KNIGHTLY
REVIEW-JOURNAL
"The owners of the Hard Rock Hotel seem poised to start collecting revenues from the largest cash flow amenity on the property: the casino.
The state Gaming Control Board on Wednesday recommended giving joint partners DLJ Merchant Banking Partners and New York-based hotel operator Morgans Hotel Group a nonrestricted gaming license to operate the 30,000-square-foot casino.
If the license application is approved by the state Gaming Commission at its Jan. 24 hearing, the owners will be able to profit from the property's gaming revenue a year after taking over ownership of the niche property." ...
"Morgans and DLJ bought the property for $770 million and are investing an additional $750 million in an expansion that will double the size of the property while adding 950 more rooms.
The casino has been leased and operated by locally based Golden Gaming since founder Peter Morton sold the property in February." ...
for the complete story see:
http://www6.lexisnexis.com/publisher/EndUser?Action=UserDisp
layFullDocument&orgId=616&topicId=12552&docId=l:727119575&s
tart=11&nid=3457
Hard Rock Hotel owners go forward
Partners win board's recommendation
By ARNOLD M. KNIGHTLY
REVIEW-JOURNAL
"The owners of the Hard Rock Hotel seem poised to start collecting revenues from the largest cash flow amenity on the property: the casino.
The state Gaming Control Board on Wednesday recommended giving joint partners DLJ Merchant Banking Partners and New York-based hotel operator Morgans Hotel Group a nonrestricted gaming license to operate the 30,000-square-foot casino.
If the license application is approved by the state Gaming Commission at its Jan. 24 hearing, the owners will be able to profit from the property's gaming revenue a year after taking over ownership of the niche property." ...
"Morgans and DLJ bought the property for $770 million and are investing an additional $750 million in an expansion that will double the size of the property while adding 950 more rooms.
The casino has been leased and operated by locally based Golden Gaming since founder Peter Morton sold the property in February." ...
for the complete story see:
http://www6.lexisnexis.com/publisher/EndUser?Action=UserDisp
layFullDocument&orgId=616&topicId=12552&docId=l:727119575&s
tart=11&nid=3457
Macao gaming IPOs
from the International Herald Tribune (1/20):
Macao companies are likely to increasingly use IPOs
By Tony Munroe
Reuters
Thursday, January 10, 2008
"HONG KONG: A $1 billion initial public offering planned by the tycoon Stanley Ho's Macao flagship company is giving investors a rare chance to bet on a casino boom that has been financed mostly by loans, but more raising of capital on public markets is in the cards.
Given the billions required to finance a planned construction spree and the change in financing needs as a gambling sector that has surpassed the Las Vegas Strip matures, operators are expected to step up the issuance of debt and equity, bankers said." ...
"Ho's company, Sociedade de Jogos de Macau, the former monopoly operator whose market share is shrinking after the entry of the U.S. heavyweights Las Vegas Sands and Wynn Resorts, plans to build up its war chest with a long-expected initial public offering set for Feb. 1.
Wynn is building a second resort, Wynn Diamond Suites, and last June doubled the size of a loan facility to $1.55 billion to finance expansion of its existing resort and pay for the new one.
Sociedade de Jogos de Macau, or SJM, would join a handful of listed Macao casino companies that includes Galaxy Entertainment Group and Melco PBL Entertainment, a venture between Melco International Development, which is run by Ho's eldest son, Lawrence, and Publishing & Broadcasting of Australia.
Other projects being built include Melco PBL's City of Dreams, the GalaxyWorld Resort, and Macao Studio City, which is backed by ESun Holdings of Hong Kong." ...
"Citigroup has been among the most active financiers of the Macao boom. It helped arrange two syndicated loans worth a combined $5.8 billion for Sands' giant Venetian Macao casino as well as underwrote Melco PBL's $1.3 billion IPO and contributed to the $1.75 billion loan the company raised in September.
The Melco PBL loan showed that even Macao is not immune to the perils of global credit markets. The company had hoped to raise $2.75 billion but cut the deal's size and raised the interest rate by 50 basis points.
The volume of syndicated lending from Macao more than doubled last year to $9 billion from six deals, according to Dealogic, but equity volumes from the former Portuguese enclave were halved from a year earlier to just $658 million.
Bond issuance from Macao has also been scarce, with Galaxy's $600 million offer in 2005 the only global public markets issue since Ho's decades-old gambling monopoly lapsed in 2002." ...
"Macao has also attracted the attention of private equity. In October, the British buyout firm Permira paid $838 million for 20 percent of Galaxy, which is building in Macao what will be the second-largest casino in the world." ...
for the complete story see:
http://www6.lexisnexis.com/publisher/EndUser?Action=UserDisp
layFullDocument&orgId=616&topicId=12552&docId=l:727119599&s
tart=5&nid=3457
Macao companies are likely to increasingly use IPOs
By Tony Munroe
Reuters
Thursday, January 10, 2008
"HONG KONG: A $1 billion initial public offering planned by the tycoon Stanley Ho's Macao flagship company is giving investors a rare chance to bet on a casino boom that has been financed mostly by loans, but more raising of capital on public markets is in the cards.
Given the billions required to finance a planned construction spree and the change in financing needs as a gambling sector that has surpassed the Las Vegas Strip matures, operators are expected to step up the issuance of debt and equity, bankers said." ...
"Ho's company, Sociedade de Jogos de Macau, the former monopoly operator whose market share is shrinking after the entry of the U.S. heavyweights Las Vegas Sands and Wynn Resorts, plans to build up its war chest with a long-expected initial public offering set for Feb. 1.
Wynn is building a second resort, Wynn Diamond Suites, and last June doubled the size of a loan facility to $1.55 billion to finance expansion of its existing resort and pay for the new one.
Sociedade de Jogos de Macau, or SJM, would join a handful of listed Macao casino companies that includes Galaxy Entertainment Group and Melco PBL Entertainment, a venture between Melco International Development, which is run by Ho's eldest son, Lawrence, and Publishing & Broadcasting of Australia.
Other projects being built include Melco PBL's City of Dreams, the GalaxyWorld Resort, and Macao Studio City, which is backed by ESun Holdings of Hong Kong." ...
"Citigroup has been among the most active financiers of the Macao boom. It helped arrange two syndicated loans worth a combined $5.8 billion for Sands' giant Venetian Macao casino as well as underwrote Melco PBL's $1.3 billion IPO and contributed to the $1.75 billion loan the company raised in September.
The Melco PBL loan showed that even Macao is not immune to the perils of global credit markets. The company had hoped to raise $2.75 billion but cut the deal's size and raised the interest rate by 50 basis points.
The volume of syndicated lending from Macao more than doubled last year to $9 billion from six deals, according to Dealogic, but equity volumes from the former Portuguese enclave were halved from a year earlier to just $658 million.
Bond issuance from Macao has also been scarce, with Galaxy's $600 million offer in 2005 the only global public markets issue since Ho's decades-old gambling monopoly lapsed in 2002." ...
"Macao has also attracted the attention of private equity. In October, the British buyout firm Permira paid $838 million for 20 percent of Galaxy, which is building in Macao what will be the second-largest casino in the world." ...
for the complete story see:
http://www6.lexisnexis.com/publisher/EndUser?Action=UserDisp
layFullDocument&orgId=616&topicId=12552&docId=l:727119599&s
tart=5&nid=3457
Sunday, January 6, 2008
regional and local real estate news
Crain's Chicago Business (12/3): Mandarin hotel plans hit financing problems
New Orleans City Business (12/17): BCS ticket prices rising
New Orleans City Business (12/24): NOLA tourism; housing values and market re-entry problems; list of shopping centers with GLA, occupancy, year built, parking, major tenants, and center type
San Diego Business Journal (12/24): Indian casino expansion on ballot
California Real Estate Journal (12/24): SF and L.A. green plans; LEED developments on the rise in CA; Sacramento development guidelines; Sacramento redevelopment -- R Street and the railyards
Orange County Business Journal (12/31): Dana Point Harbor redevelopment
New Orleans City Business (12/17): BCS ticket prices rising
New Orleans City Business (12/24): NOLA tourism; housing values and market re-entry problems; list of shopping centers with GLA, occupancy, year built, parking, major tenants, and center type
San Diego Business Journal (12/24): Indian casino expansion on ballot
California Real Estate Journal (12/24): SF and L.A. green plans; LEED developments on the rise in CA; Sacramento development guidelines; Sacramento redevelopment -- R Street and the railyards
Orange County Business Journal (12/31): Dana Point Harbor redevelopment
real estate and planning news
Urban Land (Nov-Dec): NOLA French market revitalization; Gen Y housing; main street revivals; tall building design trends; office property market; inner city redevelopment; heritage tourism; housing and trends in urban development; Milwaukee revitalization; Romania; Hong Kong's waterfront; adaptive reuse; rural airports in OR; public/private arts center development; art parks; regional spotlight on AZ
ULI Multifamily Trends (Nov-Dec): housing market turbulence
ULI Green (Spring): conversation development and housing demand; brownfield reclamation and housing; green development costs; San Francisco brownfield redevelopment; green multifamily developments; green development financing; green medical facilities
National Real Estate Investor (Dec): Atlanta lands Loews hotel
ULI Multifamily Trends (Nov-Dec): housing market turbulence
ULI Green (Spring): conversation development and housing demand; brownfield reclamation and housing; green development costs; San Francisco brownfield redevelopment; green multifamily developments; green development financing; green medical facilities
National Real Estate Investor (Dec): Atlanta lands Loews hotel
misc news
World Waterpark (Dec): China's new waterparks
IGWB (Dec): news briefs on NV plans for gaming tax hike and ME and MS tribal casino plans; feature on Dubai World; fight over right to build casino resorts in KS; MGM move to Abu Dhabi
Retail Traffic (Dec): retail industry forecasts for 2008; retail and green design; retail development prospects in the current economic conditions
Shopping Centers Today (Dec): retail and other uses in mixed use helping ailing residential profits in mixed-use developments; retail in Stockton, CA (top U.S. foreclosure market); retail on Wall St; Latin American mixed-use projects; retail in Peru
IGWB (Dec): news briefs on NV plans for gaming tax hike and ME and MS tribal casino plans; feature on Dubai World; fight over right to build casino resorts in KS; MGM move to Abu Dhabi
Retail Traffic (Dec): retail industry forecasts for 2008; retail and green design; retail development prospects in the current economic conditions
Shopping Centers Today (Dec): retail and other uses in mixed use helping ailing residential profits in mixed-use developments; retail in Stockton, CA (top U.S. foreclosure market); retail on Wall St; Latin American mixed-use projects; retail in Peru
Monday, December 31, 2007
Dubai World gathers more MGM Mirage
from Friday's GlobeSt. (12/28)
Last updated: December 28, 2007 01:51pm
Dubai World Ups Stake in MGM Mirage
By Brian K. Miller
"LAS VEGAS-Casino-resort operator MGM Mirage said Friday morning that its controlling investor, Kirk Kerkorian, sold 5 million common shares of the company to Dubai World on Christmas Eve at $84.80 per share or $424 million. Dubai World acquired the shares from Kerkorian’s charity, the Lincy Foundation.
Including the 14.2 million shares it acquired directly from MGM Mirage in October and the 350,000 it took in from its tender offer one month earlier, the investment arm of the Dubai government now owns a 6.5% stake in the company." .....
"Under its original agreement with MGM Mirage, Dubai World was to acquire a 50% stake in MGM Mirage’s multi-billion dollar CityCenter development on the Las Vegas Strip and at least 28.4 million common shares (9.5%) of the company, half directly from MGM Mirage and half from shareholders via a tender offer. While its investment in CityCenter and its direct share purchase went off without a hitch the tender offer failed, attracting only the aforementioned 350,000 shares because MGM’s share price jumped several dollars above the $84 per-share tender offer, leaving Dubai World well short of its minimum goal and out of sight of its maximum goal of a 20% stake." ...
"MGM Mirage, the largest landowner on the Las Vegas Strip, owns and operates 17 properties located in Nevada, Mississippi and Michigan. Its $7.4-billion CityCenter development, scheduled to open in November 2009, includes a 4,000-room resort casino, 2,650 condominiums in multiple towers, two 400-room non-gaming hotels and 470,000 sf of retail and entertainment space." ...
for the complete story see:
http://www.globest.com/news/1063_1063/lasvegas/167080-1.html
Last updated: December 28, 2007 01:51pm
Dubai World Ups Stake in MGM Mirage
By Brian K. Miller
"LAS VEGAS-Casino-resort operator MGM Mirage said Friday morning that its controlling investor, Kirk Kerkorian, sold 5 million common shares of the company to Dubai World on Christmas Eve at $84.80 per share or $424 million. Dubai World acquired the shares from Kerkorian’s charity, the Lincy Foundation.
Including the 14.2 million shares it acquired directly from MGM Mirage in October and the 350,000 it took in from its tender offer one month earlier, the investment arm of the Dubai government now owns a 6.5% stake in the company." .....
"Under its original agreement with MGM Mirage, Dubai World was to acquire a 50% stake in MGM Mirage’s multi-billion dollar CityCenter development on the Las Vegas Strip and at least 28.4 million common shares (9.5%) of the company, half directly from MGM Mirage and half from shareholders via a tender offer. While its investment in CityCenter and its direct share purchase went off without a hitch the tender offer failed, attracting only the aforementioned 350,000 shares because MGM’s share price jumped several dollars above the $84 per-share tender offer, leaving Dubai World well short of its minimum goal and out of sight of its maximum goal of a 20% stake." ...
"MGM Mirage, the largest landowner on the Las Vegas Strip, owns and operates 17 properties located in Nevada, Mississippi and Michigan. Its $7.4-billion CityCenter development, scheduled to open in November 2009, includes a 4,000-room resort casino, 2,650 condominiums in multiple towers, two 400-room non-gaming hotels and 470,000 sf of retail and entertainment space." ...
for the complete story see:
http://www.globest.com/news/1063_1063/lasvegas/167080-1.html
Chicago's Emerald Casino liscense
from today's Crain's Chicago Business
Emerald Casino ends fight to keep license: lawyer
Dec. 31, 2007
"(AP) — Emerald Casino Inc. has ended years of legal battles to keep control of its long-dormant state gaming license, an attorney for the company says." ...
"Emerald, which hasn't been in operation since 2001, has fought for the right to control the gaming license for years. But state courts have rejected the company's arguments and the Illinois Supreme Court turned down an appeal in November.
The Illinois Gaming Board revoked Emerald's gambling license in 2005, ruling that company officials lied to regulators and let people with ties to organized crime become investors.
The Gaming Board has said it wants to auction the dormant license in early 2008." ...
"State gaming regulators have claimed that the state lost $1 billion in revenue because the license — one of only 10 casino licenses for Illinois — has not been used." ...
for the complete story see:
http://chicagobusiness.com/cgi-bin/news.pl?id=27594
Emerald Casino ends fight to keep license: lawyer
Dec. 31, 2007
"(AP) — Emerald Casino Inc. has ended years of legal battles to keep control of its long-dormant state gaming license, an attorney for the company says." ...
"Emerald, which hasn't been in operation since 2001, has fought for the right to control the gaming license for years. But state courts have rejected the company's arguments and the Illinois Supreme Court turned down an appeal in November.
The Illinois Gaming Board revoked Emerald's gambling license in 2005, ruling that company officials lied to regulators and let people with ties to organized crime become investors.
The Gaming Board has said it wants to auction the dormant license in early 2008." ...
"State gaming regulators have claimed that the state lost $1 billion in revenue because the license — one of only 10 casino licenses for Illinois — has not been used." ...
for the complete story see:
http://chicagobusiness.com/cgi-bin/news.pl?id=27594
Friday, December 21, 2007
NY waterfront redevelopment
from today's GlobeSt (12/21):
Waterfront Revival Phase II May be Worth $2.3B
By John Jordan
"YONKERS-A newly released master plan for the Alexander Street section of this city’s waterfront as proposed could generate more than 3,000 new housing units as well as new retail, office space and increased public access to the Hudson River. City officials officially unveiled the master plan at a meeting of the city’s Community Development Agency last night.
The Alexander Street area’s redevelopment will be the second phase of the city’s plan to revitalize the waterfront district. A proposal valued at approximately $1.3 billion by the partnership of Struever Brothers, Fidelco Realty and Cappelli Enterprises, is now in the approval process with the city and will likely break ground sometime in 2008.
The Alexander Street master plan, authored by New York City-based planning firm Allee King Rosen & Fleming, looks to develop as much as 3,752 units of housing in 18 high-rise towers ranging in height from 12 stories to two 30-story buildings. Also slated for this mainly underutilized former industrial section of the city would be approximately 210,000 sf of neighborhood retail space, 223,000 sf of office space, 6,800 parking spaces in interior parking facilities and another 480 on-street parking spaces and a host of public amenities including a continuous esplanade to the river’s edge and an additional 13 acres of new parkland and open space in addition to the 31 existing acres of parks in the area.
The project site totals 1.3 miles of waterfront or 153 acres--112 acres of land and 41 acres underwater." ...
"The project site is a brownfield area that the city estimates could cost about $50 million to clean up. Several developers have already floated development plans in the Alexander Street area, although none are officially in the approval process. One venture by locally based Homes for America Holdings is called “Point Street Landing,” a $1-billion mixed-use green project."
for the complete story see:
http://www.globest.com/news/1060_1060/westchester/16696
7-1.html
Waterfront Revival Phase II May be Worth $2.3B
By John Jordan
"YONKERS-A newly released master plan for the Alexander Street section of this city’s waterfront as proposed could generate more than 3,000 new housing units as well as new retail, office space and increased public access to the Hudson River. City officials officially unveiled the master plan at a meeting of the city’s Community Development Agency last night.
The Alexander Street area’s redevelopment will be the second phase of the city’s plan to revitalize the waterfront district. A proposal valued at approximately $1.3 billion by the partnership of Struever Brothers, Fidelco Realty and Cappelli Enterprises, is now in the approval process with the city and will likely break ground sometime in 2008.
The Alexander Street master plan, authored by New York City-based planning firm Allee King Rosen & Fleming, looks to develop as much as 3,752 units of housing in 18 high-rise towers ranging in height from 12 stories to two 30-story buildings. Also slated for this mainly underutilized former industrial section of the city would be approximately 210,000 sf of neighborhood retail space, 223,000 sf of office space, 6,800 parking spaces in interior parking facilities and another 480 on-street parking spaces and a host of public amenities including a continuous esplanade to the river’s edge and an additional 13 acres of new parkland and open space in addition to the 31 existing acres of parks in the area.
The project site totals 1.3 miles of waterfront or 153 acres--112 acres of land and 41 acres underwater." ...
"The project site is a brownfield area that the city estimates could cost about $50 million to clean up. Several developers have already floated development plans in the Alexander Street area, although none are officially in the approval process. One venture by locally based Homes for America Holdings is called “Point Street Landing,” a $1-billion mixed-use green project."
for the complete story see:
http://www.globest.com/news/1060_1060/westchester/16696
7-1.html
Javitts expansion stopped
from today's Tradeshow Week eMediate News
Javits Expansion Is 'Dead'
"The long-planned expansion of the Jacob K. Javits Convention Center in New York is "dead," according to New York State Assemblyman Richard Brodsky," ...
"the proposal, whose price tag has ballooned from $1.8 billion to more than an estimated $4 billion."
for the complete story see next week's TSW and:
http://www.tradeshowweek.com/article/CA6514942.html
Javits Expansion Is 'Dead'
"The long-planned expansion of the Jacob K. Javits Convention Center in New York is "dead," according to New York State Assemblyman Richard Brodsky," ...
"the proposal, whose price tag has ballooned from $1.8 billion to more than an estimated $4 billion."
for the complete story see next week's TSW and:
http://www.tradeshowweek.com/article/CA6514942.html
New Orelans, college bowl games, conventions, and tourism
from yesterday's New Orleans Times Picayune (12/20):
College football, off-season convention put N.O. ahead of the tourism game for 2008, and Carnival's right around the corner
Thursday, December 20, 2007
By Jaquetta White
"Six teams, three games and one meeting of economists are adding up to few hotel rooms left in the Crescent City during what hospitality officials are describing as the busiest two-week stretch since Hurricane Katrina.
At least 150,000 visitors are expected through Jan. 7, starting Friday with the New Orleans Bowl and followed by the Sugar Bowl on Jan. 1 and the BCS championship game Jan. 7. In between is the six-day American Economic Association's annual meeting. The projected economic impact is $500 million.
"It's about the best thing that could happen to start off the year from a hospitality standpoint," said Fred Sawyers, president of the Greater New Orleans Hotel and Lodging Association and general manager of the Hilton New Orleans Riverside. "The gods have smiled on us here; everything is working out well."
Although it's the smallest of the games, the New Orleans Bowl is expected to produce an economic impact of $15 million to $20 million. The game pits the University of Memphis, which played in the bowl in 2003 to record crowds, against Florida Atlantic University, which will be competing in its first bowl." ...
"The economist meeting is expected to draw about 8,000 guests to the city Jan. 4-8, a week that does not usually carry a major meeting. A meeting that size has an average economic impact of about $10 million, said Mary Beth Romig, a spokeswoman for the New Orleans Metropolitan Convention & Visitors Bureau.
But it's the unprecedented occurrence of two BCS games within one week that has the industry talking of Super Bowl-sized crowds and spending." ...
"Sugar Bowl officials estimate that the two games will combine to have an economic impact of $400 million, about equal to the Super Bowl XXXVI, adjusted for inflation, in New Orleans in 2002." ....
"It will be especially difficult to find an empty hotel room in the city Jan. 5, 6 and 7. Those nights leading up to the LSU -- Ohio State matchup are already sold out citywide." ...
"The Ritz-Carlton is sold out for the championship game and nearly sold out for the Sugar Bowl, even with a four-night minimum stay requirement, hotel manager Zachary Curry said." ...
"In fact, the interest from Hawaii fans has been the surprise highlight for hoteliers, who initially worried that the distant school's fans would not travel in large numbers. But the college sold out of its initial allotment of 13,500 tickets and requested 1,000 more." ...
"Hawaii's excitement about the game may turn into a financial windfall for local businesses, because Hawaii fans are making a long vacation of their jaunt to the mainland, booking five- to seven-night stays in New Orleans." ...
"Airport Director Sean Hunter said he expects charter flight activity into Louis Armstrong International to increase significantly four or five days before both the Sugar Bowl and the BCS championship game. Several airlines have added flights in preparation for the games, but charters are usually necessary to carry such large crowds into and out of the city from one location." ...
"The best part of this unprecedented bowl season is that it is only the beginning of much to come for the city and specifically the hospitality industry.
Mardi Gras is Feb. 5, less than a month after the championship game. The NBA All-Star Game is the following month, and the French Quarter Festival, New Orleans Jazz and Heritage Festival and the Essence Festival follow in short order. That, in addition to a convention and meeting schedule that is busier than this year." ...
for the complete story see:
NOLA tourism
College football, off-season convention put N.O. ahead of the tourism game for 2008, and Carnival's right around the corner
Thursday, December 20, 2007
By Jaquetta White
"Six teams, three games and one meeting of economists are adding up to few hotel rooms left in the Crescent City during what hospitality officials are describing as the busiest two-week stretch since Hurricane Katrina.
At least 150,000 visitors are expected through Jan. 7, starting Friday with the New Orleans Bowl and followed by the Sugar Bowl on Jan. 1 and the BCS championship game Jan. 7. In between is the six-day American Economic Association's annual meeting. The projected economic impact is $500 million.
"It's about the best thing that could happen to start off the year from a hospitality standpoint," said Fred Sawyers, president of the Greater New Orleans Hotel and Lodging Association and general manager of the Hilton New Orleans Riverside. "The gods have smiled on us here; everything is working out well."
Although it's the smallest of the games, the New Orleans Bowl is expected to produce an economic impact of $15 million to $20 million. The game pits the University of Memphis, which played in the bowl in 2003 to record crowds, against Florida Atlantic University, which will be competing in its first bowl." ...
"The economist meeting is expected to draw about 8,000 guests to the city Jan. 4-8, a week that does not usually carry a major meeting. A meeting that size has an average economic impact of about $10 million, said Mary Beth Romig, a spokeswoman for the New Orleans Metropolitan Convention & Visitors Bureau.
But it's the unprecedented occurrence of two BCS games within one week that has the industry talking of Super Bowl-sized crowds and spending." ...
"Sugar Bowl officials estimate that the two games will combine to have an economic impact of $400 million, about equal to the Super Bowl XXXVI, adjusted for inflation, in New Orleans in 2002." ....
"It will be especially difficult to find an empty hotel room in the city Jan. 5, 6 and 7. Those nights leading up to the LSU -- Ohio State matchup are already sold out citywide." ...
"The Ritz-Carlton is sold out for the championship game and nearly sold out for the Sugar Bowl, even with a four-night minimum stay requirement, hotel manager Zachary Curry said." ...
"In fact, the interest from Hawaii fans has been the surprise highlight for hoteliers, who initially worried that the distant school's fans would not travel in large numbers. But the college sold out of its initial allotment of 13,500 tickets and requested 1,000 more." ...
"Hawaii's excitement about the game may turn into a financial windfall for local businesses, because Hawaii fans are making a long vacation of their jaunt to the mainland, booking five- to seven-night stays in New Orleans." ...
"Airport Director Sean Hunter said he expects charter flight activity into Louis Armstrong International to increase significantly four or five days before both the Sugar Bowl and the BCS championship game. Several airlines have added flights in preparation for the games, but charters are usually necessary to carry such large crowds into and out of the city from one location." ...
"The best part of this unprecedented bowl season is that it is only the beginning of much to come for the city and specifically the hospitality industry.
Mardi Gras is Feb. 5, less than a month after the championship game. The NBA All-Star Game is the following month, and the French Quarter Festival, New Orleans Jazz and Heritage Festival and the Essence Festival follow in short order. That, in addition to a convention and meeting schedule that is busier than this year." ...
for the complete story see:
NOLA tourism
Nazareth, PA Speedway land sale
from yesterday's GlobeSt (12/20)
UPDATE Last updated: December 20, 2007 01:20pm
Nazareth Speedway Goes Back on the Block
By Marita Thomas
"NAZARETH, PA-The former Nazareth Speedway, which originally went to market in early 2005, is back on the sales block. The asking price for the 157.5-acre property is just shy of $18.8 million. " ...
"The property is comprised of six parcels and includes a one-mile paved racetrack and several service and maintenance buildings. “It has three separate zonings,” Camarda says: “57 acres of residential, 90-some acres of general commercial, and 10 acres of industrial.” He acknowledges that the warehouse/distribution sector here is especially robust, but says, “the township would prefer not to have just big box on the land.” ...
for the complete story see:
http://www.globest.com/news/1060_1060/philadelphia/166940-1.html
UPDATE Last updated: December 20, 2007 01:20pm
Nazareth Speedway Goes Back on the Block
By Marita Thomas
"NAZARETH, PA-The former Nazareth Speedway, which originally went to market in early 2005, is back on the sales block. The asking price for the 157.5-acre property is just shy of $18.8 million. " ...
"The property is comprised of six parcels and includes a one-mile paved racetrack and several service and maintenance buildings. “It has three separate zonings,” Camarda says: “57 acres of residential, 90-some acres of general commercial, and 10 acres of industrial.” He acknowledges that the warehouse/distribution sector here is especially robust, but says, “the township would prefer not to have just big box on the land.” ...
for the complete story see:
http://www.globest.com/news/1060_1060/philadelphia/166940-1.html
Mexican resort plans
from yesterday's GlobeSt (12/20):
Strategic Pays $53M for Resort Site
By Joe Clements
"PUNTA MITA, MEXICO-Strategic Hotels & Resorts is aiming to build a mixed-use resort development here after acquiring 57 acres of property on a spear-shaped peninsula hugging the Pacific Ocean coastline. Chicago-based Strategic paid $53 million for the tract to DINE, the Mexican firm that is developing the 1,500-acre Punta Mita vacation enclave. " ...
"Featuring nine miles of shoreline, Punta Mita is surrounded on three sides by coves and white-sand beaches. DINE has spent more than $150 million to date developing the site’s infrastructure. The firm estimates that the property will have a total real estate value of $2 billion at full build out. Presently home to a Four Seasons resort, Punta Mita also has numerous private residences already built or under construction as well as the Jack Nicklaus Signature Golf Course, regularly ranked among the best resort golf courses in the world.
The Punta Mita master plan calls for development of a second Jack Nicklaus course, more residential properties and additional resort developments, including the St. Regis Resort & Residences slated to open by mid-2008." ...
for the complete story see:
http://www.globest.com/news/1060_1060/latinamerica/166945-1.html
Strategic Pays $53M for Resort Site
By Joe Clements
"PUNTA MITA, MEXICO-Strategic Hotels & Resorts is aiming to build a mixed-use resort development here after acquiring 57 acres of property on a spear-shaped peninsula hugging the Pacific Ocean coastline. Chicago-based Strategic paid $53 million for the tract to DINE, the Mexican firm that is developing the 1,500-acre Punta Mita vacation enclave. " ...
"Featuring nine miles of shoreline, Punta Mita is surrounded on three sides by coves and white-sand beaches. DINE has spent more than $150 million to date developing the site’s infrastructure. The firm estimates that the property will have a total real estate value of $2 billion at full build out. Presently home to a Four Seasons resort, Punta Mita also has numerous private residences already built or under construction as well as the Jack Nicklaus Signature Golf Course, regularly ranked among the best resort golf courses in the world.
The Punta Mita master plan calls for development of a second Jack Nicklaus course, more residential properties and additional resort developments, including the St. Regis Resort & Residences slated to open by mid-2008." ...
for the complete story see:
http://www.globest.com/news/1060_1060/latinamerica/166945-1.html
Thursday, December 20, 2007
K Street development saga continues in Sacramento
from yesterday's Sacramento Bee --
K Street battle headed to court
Taking action against blight, the City Council votes to force big landowner to sell his properties.
By Mary Lynne Vellinga - mlvellinga@sacbee.com
Published 12:27 am PST Wednesday, December 19, 2007
"Saying the blight on K Street has festered for too long, Sacramento City Council members brushed aside threats of a drawn out courtroom battle, voting unanimously Tuesday to start the legal process of forcing landowner Moe Mohanna to sell his properties there.
At the close of a bruising four-hour public hearing, Mayor Heather Fargo said she still hopes the city can reach an amicable settlement with Mohanna, but needs to have the tool of eminent domain at its disposal.
"The message that this sends is that the city of Sacramento is serious about K Street," Fargo said after the 9-0 vote. "K Street is going to be a retail street that people in Sacramento will be proud of, and we will do whatever it takes to get there."
The next step is for the city to convince a Sacramento Superior Court that the use of eminent domain is justified. Then, it would be up to a jury to decide how much the city would have to pay Mohanna for his nine properties on two of the bleakest blocks on the K Street Mall." ....
"A parade of prominent downtown developers, business people and civic leaders, however, urged the city to do whatever it takes – including exercising eminent domain – to move forward with redevelopment.
Joe Zeiden, owner of the Z Gallerie, plans to convert the historic buildings in the 700 block into a row that includes upscale retailers such as Sur La Table, Z Gallerie and Anthropologie.
Zeiden attended the hearing but didn't speak. His lawyer, Richard Hyde, told the council that "this city is fortunate to have a developer of this quality willing to take an interest in and redevelop K Street."
David Taylor, downtown's most prominent high-rise developer, said the picture was bleak. "I've never been more discouraged about K Street than I am right now, and I'm fearful that if you don't do anything tonight, you'll be in exactly the same spot that you're in five years from now, 10 years from now," he said. Taylor is a member of the team currently converting the old Woolworth store at 10th and K streets into a live theater and restaurant." ...
"A year ago, the city had in hand a signed deal with Mohanna and Zeiden to move forward with redevelopment on the two blocks. Mohanna had agreed to swap his properties on the 700 block with an equal amount of property on the 800 block. The city has spent more than $24 million to help Zeiden by acquiring properties that could be swapped with Mohanna's.
But a fire over Thanksgiving weekend in 2006 destroyed one of Mohanna's buildings in the 800 block. The city responded by declaring that the other buildings on the block were now dangerous and had to be knocked down.
Suddenly, Mohanna was faced with swapping a row of intact buildings on the 700 block with a hole in the ground on the 800 block. He balked, and the city is now fighting him in court to force him to follow through with the deal. City officials say the plan was always to demolish the buildings on the 800 block and build a new structure. But Mohanna had been hoping to rent them out until a development project made economic sense.
Mohanna and city leaders have been negotiating, but they have yet to agree on a new set of terms that would persuade Mohanna to go forward with the swap." ...
for the complete story see:
http://www.sacbee.com/245/story/577982.html
K Street battle headed to court
Taking action against blight, the City Council votes to force big landowner to sell his properties.
By Mary Lynne Vellinga - mlvellinga@sacbee.com
Published 12:27 am PST Wednesday, December 19, 2007
"Saying the blight on K Street has festered for too long, Sacramento City Council members brushed aside threats of a drawn out courtroom battle, voting unanimously Tuesday to start the legal process of forcing landowner Moe Mohanna to sell his properties there.
At the close of a bruising four-hour public hearing, Mayor Heather Fargo said she still hopes the city can reach an amicable settlement with Mohanna, but needs to have the tool of eminent domain at its disposal.
"The message that this sends is that the city of Sacramento is serious about K Street," Fargo said after the 9-0 vote. "K Street is going to be a retail street that people in Sacramento will be proud of, and we will do whatever it takes to get there."
The next step is for the city to convince a Sacramento Superior Court that the use of eminent domain is justified. Then, it would be up to a jury to decide how much the city would have to pay Mohanna for his nine properties on two of the bleakest blocks on the K Street Mall." ....
"A parade of prominent downtown developers, business people and civic leaders, however, urged the city to do whatever it takes – including exercising eminent domain – to move forward with redevelopment.
Joe Zeiden, owner of the Z Gallerie, plans to convert the historic buildings in the 700 block into a row that includes upscale retailers such as Sur La Table, Z Gallerie and Anthropologie.
Zeiden attended the hearing but didn't speak. His lawyer, Richard Hyde, told the council that "this city is fortunate to have a developer of this quality willing to take an interest in and redevelop K Street."
David Taylor, downtown's most prominent high-rise developer, said the picture was bleak. "I've never been more discouraged about K Street than I am right now, and I'm fearful that if you don't do anything tonight, you'll be in exactly the same spot that you're in five years from now, 10 years from now," he said. Taylor is a member of the team currently converting the old Woolworth store at 10th and K streets into a live theater and restaurant." ...
"A year ago, the city had in hand a signed deal with Mohanna and Zeiden to move forward with redevelopment on the two blocks. Mohanna had agreed to swap his properties on the 700 block with an equal amount of property on the 800 block. The city has spent more than $24 million to help Zeiden by acquiring properties that could be swapped with Mohanna's.
But a fire over Thanksgiving weekend in 2006 destroyed one of Mohanna's buildings in the 800 block. The city responded by declaring that the other buildings on the block were now dangerous and had to be knocked down.
Suddenly, Mohanna was faced with swapping a row of intact buildings on the 700 block with a hole in the ground on the 800 block. He balked, and the city is now fighting him in court to force him to follow through with the deal. City officials say the plan was always to demolish the buildings on the 800 block and build a new structure. But Mohanna had been hoping to rent them out until a development project made economic sense.
Mohanna and city leaders have been negotiating, but they have yet to agree on a new set of terms that would persuade Mohanna to go forward with the swap." ...
for the complete story see:
http://www.sacbee.com/245/story/577982.html
Park Plaza hotels moving into Middle East
from yesterday's Hotels online news
Park Plaza Expands Into Qatar, Morocco
Park Plaza Hotels
December 19, 2007
"Park Plaza Hotels has announced the signing of franchise agreements for new hotels in Qatar and Morocco. The hotels, located in Doha and Marrakech, will be operated by a local subsidiary of Global V Hospitality Inc, the territorial sub-license partner for the Park Plaza Hotels & Resorts brand in Morocco, Egypt and the Gulf States, under franchise agreements with Park Plaza Hotels.
The new-build hotels are currently under construction in the main central hub of Doha and Marrakech – both thriving cities and emerging markets for Park Plaza Hotels to extend their brand reach and destination offering. The hotels will add an additional 281 guest rooms to the company’s 4000+ room and growing EMEA collection and is key to their aggressive expansion strategy over the next few years." ....
for the complete story see the news section of:
http://www.hotelsmag.com/
Park Plaza Expands Into Qatar, Morocco
Park Plaza Hotels
December 19, 2007
"Park Plaza Hotels has announced the signing of franchise agreements for new hotels in Qatar and Morocco. The hotels, located in Doha and Marrakech, will be operated by a local subsidiary of Global V Hospitality Inc, the territorial sub-license partner for the Park Plaza Hotels & Resorts brand in Morocco, Egypt and the Gulf States, under franchise agreements with Park Plaza Hotels.
The new-build hotels are currently under construction in the main central hub of Doha and Marrakech – both thriving cities and emerging markets for Park Plaza Hotels to extend their brand reach and destination offering. The hotels will add an additional 281 guest rooms to the company’s 4000+ room and growing EMEA collection and is key to their aggressive expansion strategy over the next few years." ....
for the complete story see the news section of:
http://www.hotelsmag.com/
suburban slump around Sacramento
from today's Sacramento Bee
Suburban growth slows
Placer, El Dorado population boom experiences a lull
By Phillip Reese - And Carrie Peyton Dahlberg
Published 12:00 am PST Thursday, December 20, 2007
"A few years ago, Placer and El Dorado counties were red hot, flush with Bay Area transplants and drawing more residents each year at a tremendous rate.
Now that trend is cooling.
Both counties grew at a slower pace in the past fiscal year than during any of the previous 35 years, according to population estimates released Wednesday by the California Department of Finance.
Placer County's population rose by 2.1 percent from July 2006 to July 2007. El Dorado County added 1 percent – matching the statewide rate. Both counties saw less than half their dizzying annual growth at the height of the local housing boom.
In the rest of the region, growth remained relatively steady: a little over 1 percent in Sacramento County; about 2 percent in Yuba and Yolo counties; and about 3 percent in Sutter County.
Population growth affects everything from tax revenues to additional retail outlets to housing prices. The slowdown is making local governments more cautious about spending decisions, with some holding vacancies open longer, shrinking operations or mobilizing task forces on cost cutting.
Slowing growth, however, could give the region breathing room for better planning, according to some environmentalists. And many local officials contacted Wednesday downplayed the numbers, saying that lower rates of growth may be healthy.
"It isn't all necessarily bad news," said Gordon Garry, director of research and analysis for the Sacramento Area Council of Governments.
Garry noted that Placer County still grew faster than all but eight other counties in the state. In El Dorado County, he said, a slowdown might help alleviate the current lopsidedness of being "high on houses and low on jobs."
Even so, Placer County hasn't seen a lower rate of population growth since 1971, according to state figures. And El Dorado's hasn't been this low since 1968.
The driver for the change appeared to be a statewide drop in domestic migration – movement from one part of the country to another. Instead, all of California's growth this year came from natural increase – more births than deaths – and immigration from other countries." ....
"California's chief economist, Howard Roth, also noted that places like Roseville and Lincoln can't grow forever without expanding their borders.
"Local economies are maturing – building is slowing down," Roth said.
Then there are the foreclosures. California residents who have lost their homes, Roth said, are opting to move out of state.
In all, about 90,000 more people left California than came here from another state this year, and Roth said that trend may be cause for concern.
When more residents leave than arrive, he said, it "often relates to what people think of California. Our economy is slowing down. We had a pretty big housing bubble that burst."
Locally, the slowing growth rate is being felt widely. El Dorado County has reduced its building services division by about a third because construction has slowed so much, particularly in once-booming El Dorado Hills, said Laura Gill, the county's chief administrative officer.
Some projects have been put on hold indefinitely, while other builders have told the county they're finishing homes under way but won't start new ones, Gill said." .....
"While Roseville's growth is slower than during its peak years, it has rebounded some as the city gears up to develop its western flank, said city manager Craig Robinson.
Homebuilders took out 1,250 single family building permits in 2007 – though that is down from a high of 2,000 a few years ago, he said – while the two malls are expanding significantly." ....
"Rocklin has long been preparing for the day when land it set aside for new neighborhoods is fully occupied, said city manager Carlos Urrutia.
"We're pretty well planned out; we know where we're going," he said. The recent slowdown means that buildout will not come in 2012 or 2013 as expected, and Rocklin will have to budget carefully along the way, Urrutia said." ....
"Environmentalists are hoping that as the race to build suburban homes slows, their lobbying for central, infill development could gain ground.
"It's a chance to stop paving over farmland, do the infill, take stock and figure out how to deal with growth issues instead of blindly handing out building permits," said Jim Pachl, legal counsel for Friends of the Swainson's Hawk." ....
for the complete story see:
http://www.sacbee.com/101/story/580769.html
Suburban growth slows
Placer, El Dorado population boom experiences a lull
By Phillip Reese - And Carrie Peyton Dahlberg
Published 12:00 am PST Thursday, December 20, 2007
"A few years ago, Placer and El Dorado counties were red hot, flush with Bay Area transplants and drawing more residents each year at a tremendous rate.
Now that trend is cooling.
Both counties grew at a slower pace in the past fiscal year than during any of the previous 35 years, according to population estimates released Wednesday by the California Department of Finance.
Placer County's population rose by 2.1 percent from July 2006 to July 2007. El Dorado County added 1 percent – matching the statewide rate. Both counties saw less than half their dizzying annual growth at the height of the local housing boom.
In the rest of the region, growth remained relatively steady: a little over 1 percent in Sacramento County; about 2 percent in Yuba and Yolo counties; and about 3 percent in Sutter County.
Population growth affects everything from tax revenues to additional retail outlets to housing prices. The slowdown is making local governments more cautious about spending decisions, with some holding vacancies open longer, shrinking operations or mobilizing task forces on cost cutting.
Slowing growth, however, could give the region breathing room for better planning, according to some environmentalists. And many local officials contacted Wednesday downplayed the numbers, saying that lower rates of growth may be healthy.
"It isn't all necessarily bad news," said Gordon Garry, director of research and analysis for the Sacramento Area Council of Governments.
Garry noted that Placer County still grew faster than all but eight other counties in the state. In El Dorado County, he said, a slowdown might help alleviate the current lopsidedness of being "high on houses and low on jobs."
Even so, Placer County hasn't seen a lower rate of population growth since 1971, according to state figures. And El Dorado's hasn't been this low since 1968.
The driver for the change appeared to be a statewide drop in domestic migration – movement from one part of the country to another. Instead, all of California's growth this year came from natural increase – more births than deaths – and immigration from other countries." ....
"California's chief economist, Howard Roth, also noted that places like Roseville and Lincoln can't grow forever without expanding their borders.
"Local economies are maturing – building is slowing down," Roth said.
Then there are the foreclosures. California residents who have lost their homes, Roth said, are opting to move out of state.
In all, about 90,000 more people left California than came here from another state this year, and Roth said that trend may be cause for concern.
When more residents leave than arrive, he said, it "often relates to what people think of California. Our economy is slowing down. We had a pretty big housing bubble that burst."
Locally, the slowing growth rate is being felt widely. El Dorado County has reduced its building services division by about a third because construction has slowed so much, particularly in once-booming El Dorado Hills, said Laura Gill, the county's chief administrative officer.
Some projects have been put on hold indefinitely, while other builders have told the county they're finishing homes under way but won't start new ones, Gill said." .....
"While Roseville's growth is slower than during its peak years, it has rebounded some as the city gears up to develop its western flank, said city manager Craig Robinson.
Homebuilders took out 1,250 single family building permits in 2007 – though that is down from a high of 2,000 a few years ago, he said – while the two malls are expanding significantly." ....
"Rocklin has long been preparing for the day when land it set aside for new neighborhoods is fully occupied, said city manager Carlos Urrutia.
"We're pretty well planned out; we know where we're going," he said. The recent slowdown means that buildout will not come in 2012 or 2013 as expected, and Rocklin will have to budget carefully along the way, Urrutia said." ....
"Environmentalists are hoping that as the race to build suburban homes slows, their lobbying for central, infill development could gain ground.
"It's a chance to stop paving over farmland, do the infill, take stock and figure out how to deal with growth issues instead of blindly handing out building permits," said Jim Pachl, legal counsel for Friends of the Swainson's Hawk." ....
for the complete story see:
http://www.sacbee.com/101/story/580769.html
Monday, December 17, 2007
Sacramento Railyards project approved
from Friday's GlobeSt:
Council Approves Downtown Rail Yard Redevelopment
By Brian K. Miller
"SACRAMENTO, CA-The Sacramento City Council this week approved a plan for one of the largest urban infill opportunities in the nation, Union Pacific’s 240-acre railroad yard. The multi-billion, multi-phase project would transform the dormant land adjacent to Downtown into a dense mixed-use village that includes no less than 7,400 housing units, 1.2 million sf of office, 570,000 sf of retail and 42 acres of open space.
The master developer is Atlanta-based Thomas Enterprises, whose other projects include 1,500-acre mixed-use development in Orlando called the Boulevard. The company filed its development plan for the Sacramento project in June 2005 and acquired the land from Union Pacific shortly thereafter. If it ultimately happens, the redevelopment would generate approximately 19,000 jobs and push $2.7 billion into the local economy, according to a study commissioned by the city.
The plan calls for a redeveloped rail yard anchored by an intermodal transportation terminal, the historic Central Shop buildings and a Railroad Technology Museum. The Central Shop buildings, once the largest railroad maintenance facility west of the Mississippi, would become a public marketplace. The development would be linked to the Downtown via an extension of 5th and 6th streets over the relocated railroad tracks.
The initial term of the development agreement with the city is 10 years commencing upon the relocation of the railroad tracks. The agreement may be extended by as much as 20 years in five-year increments if certain benchmarks are achieved.
Thomas Enterprises may obtain a five-year extension of the initial 10-year term if the site by that time holds at least 700 residential units, 200,000 sf of office and 350,000 sf of retail. To obtain an additional five-year extension, it would need to deliver an additional 150,000 sf of retail, 500,000 sf of office and 1,000 residential units. The hurdle for a third extension is an additional 400,000 sf of office, 20,000 sf of retail and 2,700 residential units. To obtain the fourth extension, it must have added another 3,000 residential units, 50,000 sf of retail and 80,000 sf of office." ...
for the complete story see:
http://www.globest.com/news/1055_1055/sacramento/16
6801-1.html
Council Approves Downtown Rail Yard Redevelopment
By Brian K. Miller
"SACRAMENTO, CA-The Sacramento City Council this week approved a plan for one of the largest urban infill opportunities in the nation, Union Pacific’s 240-acre railroad yard. The multi-billion, multi-phase project would transform the dormant land adjacent to Downtown into a dense mixed-use village that includes no less than 7,400 housing units, 1.2 million sf of office, 570,000 sf of retail and 42 acres of open space.
The master developer is Atlanta-based Thomas Enterprises, whose other projects include 1,500-acre mixed-use development in Orlando called the Boulevard. The company filed its development plan for the Sacramento project in June 2005 and acquired the land from Union Pacific shortly thereafter. If it ultimately happens, the redevelopment would generate approximately 19,000 jobs and push $2.7 billion into the local economy, according to a study commissioned by the city.
The plan calls for a redeveloped rail yard anchored by an intermodal transportation terminal, the historic Central Shop buildings and a Railroad Technology Museum. The Central Shop buildings, once the largest railroad maintenance facility west of the Mississippi, would become a public marketplace. The development would be linked to the Downtown via an extension of 5th and 6th streets over the relocated railroad tracks.
The initial term of the development agreement with the city is 10 years commencing upon the relocation of the railroad tracks. The agreement may be extended by as much as 20 years in five-year increments if certain benchmarks are achieved.
Thomas Enterprises may obtain a five-year extension of the initial 10-year term if the site by that time holds at least 700 residential units, 200,000 sf of office and 350,000 sf of retail. To obtain an additional five-year extension, it would need to deliver an additional 150,000 sf of retail, 500,000 sf of office and 1,000 residential units. The hurdle for a third extension is an additional 400,000 sf of office, 20,000 sf of retail and 2,700 residential units. To obtain the fourth extension, it must have added another 3,000 residential units, 50,000 sf of retail and 80,000 sf of office." ...
for the complete story see:
http://www.globest.com/news/1055_1055/sacramento/16
6801-1.html
NYC hotels
from yesterday's USA Today
NYC hotel boom may ease room shortage
"NEW YORK (AP) — While planning her vacation to New York, Lisa Werness was so horrified by the prices in Manhattan that she opted for cheaper lodging in Brooklyn — where she scored a room rate of just $400 a night." ...
"Now, with 8,500 hotel rooms under construction in the city — a growth of more than 10% — that crunch could ease ever so slightly in the coming months. By comparison, it took from 1998 to 2007 to make a leap of the same size.
"One of the challenges that New York has always had is having enough rooms for tourists," said Sean Hennessey, CEO of industry consulting firm Lodging Investment Advisors. "Most of the time the corporate travelers are willing to pay more than the tourists, and the tourists kind of get crowded out."
New York sees more overseas and domestic visitors than any other U.S. destination except Orlando, according to analysts at Global Insight Inc. But it has fewer hotel rooms than less-popular spots including Las Vegas, Chicago, the Los Angeles metro area and Atlanta, according to Smith Travel Research.
The resulting shortage leads many travelers seeking an affordable room to head far afield of the usual tourist draws, and hotel developers have taken notice, with new lodging under construction or recently opened in Brooklyn, Queens, the Bronx, Long Island and beyond." ...
"Indeed, the city's occupancy rate is much higher than elsewhere around the country — averaging 85% in Manhattan during the first nine months of this year, compared with the national average of 65%, according to Smith Travel Research. Manhattan's hotels are at or near capacity most nights of the year, said Hennessey, adding that the current growth is the largest he's seen in the city in 25 years.
While hotel developers are doing well around the country, the high demand and rising prices in New York City have convinced investors that it's a particularly good time to build hotels here. Even the current influx of rooms is unlikely to glut the market and knock down prices, Hennessey said, although he noted that an economic downturn could lead companies to cut back on business travel — a move that could lead to cheaper rates.
As of October, New York had 59 hotels under construction — more than any of the 26 other U.S. cities with the largest number of hotel rooms, according to Smith Travel Research. It also had 103 hotels in the planning stage, beating out all those other markets.
With most of those new properties expected to charge what Hennessey called "mid-market" prices, the new hotels should be a boon for tourists, although mid-range in New York — $200 to $300 per night — may still seem far too expensive for some.
In part, the building boom has been driven by developers like McSam Hotel Group LLC, which has made a business of buying properties not zoned for residential use but too small to be attractive as office space, then converting them into functional hotels with small rooms, Hennessey said. As of September, the company had nearly 30 hotels expected to open around the city by 2009, according to city tourism office NYC & Company." ...
"While properties already under construction are unlikely to be called off, the mortgage crunch has some in the industry wondering if future projects might be slowed by the rising price of financing. Either way, it seems unlikely that a city with such high real estate prices will soon be offering truly cheap hotel rooms." ...
for the complete story see:
http://www.usatoday.com/money/industries/travel/2007-12-1
6-nyc-hotels_N.htm?csp=34
NYC hotel boom may ease room shortage
"NEW YORK (AP) — While planning her vacation to New York, Lisa Werness was so horrified by the prices in Manhattan that she opted for cheaper lodging in Brooklyn — where she scored a room rate of just $400 a night." ...
"Now, with 8,500 hotel rooms under construction in the city — a growth of more than 10% — that crunch could ease ever so slightly in the coming months. By comparison, it took from 1998 to 2007 to make a leap of the same size.
"One of the challenges that New York has always had is having enough rooms for tourists," said Sean Hennessey, CEO of industry consulting firm Lodging Investment Advisors. "Most of the time the corporate travelers are willing to pay more than the tourists, and the tourists kind of get crowded out."
New York sees more overseas and domestic visitors than any other U.S. destination except Orlando, according to analysts at Global Insight Inc. But it has fewer hotel rooms than less-popular spots including Las Vegas, Chicago, the Los Angeles metro area and Atlanta, according to Smith Travel Research.
The resulting shortage leads many travelers seeking an affordable room to head far afield of the usual tourist draws, and hotel developers have taken notice, with new lodging under construction or recently opened in Brooklyn, Queens, the Bronx, Long Island and beyond." ...
"Indeed, the city's occupancy rate is much higher than elsewhere around the country — averaging 85% in Manhattan during the first nine months of this year, compared with the national average of 65%, according to Smith Travel Research. Manhattan's hotels are at or near capacity most nights of the year, said Hennessey, adding that the current growth is the largest he's seen in the city in 25 years.
While hotel developers are doing well around the country, the high demand and rising prices in New York City have convinced investors that it's a particularly good time to build hotels here. Even the current influx of rooms is unlikely to glut the market and knock down prices, Hennessey said, although he noted that an economic downturn could lead companies to cut back on business travel — a move that could lead to cheaper rates.
As of October, New York had 59 hotels under construction — more than any of the 26 other U.S. cities with the largest number of hotel rooms, according to Smith Travel Research. It also had 103 hotels in the planning stage, beating out all those other markets.
With most of those new properties expected to charge what Hennessey called "mid-market" prices, the new hotels should be a boon for tourists, although mid-range in New York — $200 to $300 per night — may still seem far too expensive for some.
In part, the building boom has been driven by developers like McSam Hotel Group LLC, which has made a business of buying properties not zoned for residential use but too small to be attractive as office space, then converting them into functional hotels with small rooms, Hennessey said. As of September, the company had nearly 30 hotels expected to open around the city by 2009, according to city tourism office NYC & Company." ...
"While properties already under construction are unlikely to be called off, the mortgage crunch has some in the industry wondering if future projects might be slowed by the rising price of financing. Either way, it seems unlikely that a city with such high real estate prices will soon be offering truly cheap hotel rooms." ...
for the complete story see:
http://www.usatoday.com/money/industries/travel/2007-12-1
6-nyc-hotels_N.htm?csp=34
Chicago caisno troubles
from today's Crain's Chicago Business
Hoped-for casino boost faces long odds
By Steven R. Strahler and Steve Daniels
Dec. 17, 2007
"As a downtown Chicago casino inches closer to reality, results from gambling forays in Detroit and other Midwestern cities suggest a limited payout here for the convention and tourism industries.
Three casinos near downtown Detroit, the first of which opened in 1999, have done little to attract more visitors or otherwise boost the city's struggling economy" ...
"Chicago casino boosters cite a potential impact of as much as $950 million a year in annual revenue and 2,500 new jobs from a casino with 4,000 gambling positions, figures that could grow to $1.2 billion and 3,200 jobs for the hospitality industry as a whole. But critics say much of that would not be new money.
'IT'S A ZERO-SUM GAME'
"The good thing (about casinos) is they make a lot of money," says William Thompson, a University of Nevada at Las Vegas professor of public administration. Casinos "pay a lot of taxes. The bad thing is they make the money off local residents. It's a zero-sum game."
After more than 15 years of false starts, approval of a Chicago casino appears more likely than ever, with Illinois House Speaker Michael Madigan backing a bill that calls for a city-owned casino in Chicago and two others elsewhere. The House Gaming Committee had been expected to consider the bill this week, but on Friday Mr. Madigan canceled plans to reconvene. An even more ambitious casino bill passed the Senate in September.
The House bill is backed, with reservations, by Mayor Richard M. Daley, who wants the Legislature to omit an $800-million license fee that's part of the Senate bill.
Chicago casino backers are counting on gambling to encourage longer stays from many of the approximately 33 million conventioneers, tourists and others who visit the city each year. They're also hoping it will lift Chicago's convention industry, which has slipped behind Las Vegas and Orlando, Fla., as a trade show destination.
'WON'T MOVE THE NEEDLE'
However, fewer than 10% of U.S. convention officials say casinos are a key site-selection factor, says Michael Hughes, associate publisher of Los Angeles-based Tradeshow Week." ...
"In Detroit, about 20% of casino patrons are non-locals, according to the Detroit Metro Convention & Visitors Bureau, which credits the casinos with spurring development or renovation of more than 2,000 hotel rooms. The city is hoping for more tourism dollars as the MGM Grand Detroit, MotorCity Casino and Greektown Casino, which ring the central business district, settle into their new hotel locations." ...
for the complete story see:
http://chicagobusiness.com/cgi-bin/mag/article.pl?article_id=2
9000
Hoped-for casino boost faces long odds
By Steven R. Strahler and Steve Daniels
Dec. 17, 2007
"As a downtown Chicago casino inches closer to reality, results from gambling forays in Detroit and other Midwestern cities suggest a limited payout here for the convention and tourism industries.
Three casinos near downtown Detroit, the first of which opened in 1999, have done little to attract more visitors or otherwise boost the city's struggling economy" ...
"Chicago casino boosters cite a potential impact of as much as $950 million a year in annual revenue and 2,500 new jobs from a casino with 4,000 gambling positions, figures that could grow to $1.2 billion and 3,200 jobs for the hospitality industry as a whole. But critics say much of that would not be new money.
'IT'S A ZERO-SUM GAME'
"The good thing (about casinos) is they make a lot of money," says William Thompson, a University of Nevada at Las Vegas professor of public administration. Casinos "pay a lot of taxes. The bad thing is they make the money off local residents. It's a zero-sum game."
After more than 15 years of false starts, approval of a Chicago casino appears more likely than ever, with Illinois House Speaker Michael Madigan backing a bill that calls for a city-owned casino in Chicago and two others elsewhere. The House Gaming Committee had been expected to consider the bill this week, but on Friday Mr. Madigan canceled plans to reconvene. An even more ambitious casino bill passed the Senate in September.
The House bill is backed, with reservations, by Mayor Richard M. Daley, who wants the Legislature to omit an $800-million license fee that's part of the Senate bill.
Chicago casino backers are counting on gambling to encourage longer stays from many of the approximately 33 million conventioneers, tourists and others who visit the city each year. They're also hoping it will lift Chicago's convention industry, which has slipped behind Las Vegas and Orlando, Fla., as a trade show destination.
'WON'T MOVE THE NEEDLE'
However, fewer than 10% of U.S. convention officials say casinos are a key site-selection factor, says Michael Hughes, associate publisher of Los Angeles-based Tradeshow Week." ...
"In Detroit, about 20% of casino patrons are non-locals, according to the Detroit Metro Convention & Visitors Bureau, which credits the casinos with spurring development or renovation of more than 2,000 hotel rooms. The city is hoping for more tourism dollars as the MGM Grand Detroit, MotorCity Casino and Greektown Casino, which ring the central business district, settle into their new hotel locations." ...
for the complete story see:
http://chicagobusiness.com/cgi-bin/mag/article.pl?article_id=2
9000
Friday, December 14, 2007
local/regional real estate news
California Real Estate Journal (12/10): L.A. office market
New Orleans City Business (12/3): New Orleans redevelopment issues
San Fernando Valley Business Journal (12/10): North Hollywood BID launched
New Orleans City Business (12/3): New Orleans redevelopment issues
San Fernando Valley Business Journal (12/10): North Hollywood BID launched
misc news
Journal of Convention and Event Tourism (Winter 2006): long-term financial implications to a municipality of building a convention center; public financing for a headquarters hotel; estimating the economic impact of event tourism; measuring economic impacts of convention centers; convention and exhibit center development in Korea
New Urban News (Dec): General Growth going mixed use in UT
Shopping Center Business (Dec): Patriot Place -- retail around Gillette Stadium; mixed-use in Normal, IL; mixed-use density design
Valuation (4th Q.) review of appraisers' data sources; feature on 3 data providers (Korpacz, HVS intl, and RERC); tables on economic and market indicators from Standard and Poor's, Korpacz, and the Federal Reserve.
CP and DR (Dec): BART station and redevelopment in downtown Hayward and impact on housing; Hesperia profile
Tradeshow Week (12/10): Gaylord expansion plans
New Urban News (Dec): General Growth going mixed use in UT
Shopping Center Business (Dec): Patriot Place -- retail around Gillette Stadium; mixed-use in Normal, IL; mixed-use density design
Valuation (4th Q.) review of appraisers' data sources; feature on 3 data providers (Korpacz, HVS intl, and RERC); tables on economic and market indicators from Standard and Poor's, Korpacz, and the Federal Reserve.
CP and DR (Dec): BART station and redevelopment in downtown Hayward and impact on housing; Hesperia profile
Tradeshow Week (12/10): Gaylord expansion plans
Thursday, December 13, 2007
World Travel Trends Report out
From today's Smith Travel Research Global Hospitality News --
World Travel Trends Report: Europe Continues To Exceed The Long-term Growth Forecasts
"With a 4% increase in international tourist arrivals from January through August 2007, Europe looks set to achieve another record year in terms of tourism growth, according to the World Travel Trends Report of ITB Berlin and IPK International.
Moreover, as the participants gathered in Pisa for the 15th World Travel Monitor Forum from 24-26 October agreed, the growth is remarkable since it will exceed the World Tourism Organization’s (UNWTO’s) long-term annual growth forecast for Europe of 3% for the fourth consecutive year.
If the 4% increase seen in the first eight months of this year continues through to the end of 2007, this will mean an additional 18 million arrivals – no mean feat for the world’s most mature destination region.
Demand for Central & Eastern Europe seems to have largely bottomed out…
Nevertheless, as data gathered from their members by UNWTO and the European Travel Commission (ETC) shows, the Europe-wide average for inbound tourist arrivals, estimated by UNWTO based on data available at the end of October, masks some fairly wide variations from one sub-region to another." ...
"…and other sub-regions have shown mixed results
Northern Europe, on the other hand, has shown a marked slowdown in growth this year – largely due to the stagnation in international visitors to the UK – although some destinations have turned in good results. Finland is one example, having recorded a growth of nearly 8% in overnight volume from January through August.
Growth to Western Europe has also slowed, according to UNWTO – albeit only from 5% to 3% – attributed in part to Germany’s decline in arrivals through the second quarter of 2007. This was of course hardly surprising, given the huge boost to inbound tourism demand over the same period in 2006 provided by the country’s hosting of the FIFA Football World Cup.
Europe’s star performer this year so far, in terms of sub-regions, is Southern/Mediterranean Europe – up 7% in terms of international arrivals through the month of August. The sharp recovery of Turkey has been a main contributor to the improved performance, but the Balkan States have also performed well above average – in particular Montenegro and Serbia – and Malta has had an excellent year so far, largely thanks to the introduction of low-cost airline services.
European inbound is mainly intra-regional
The performance of long-haul markets to Europe has been very mixed, ETC’s data shows, mainly due to the unfavourable exchange rates – in particular, between the US dollar and the euro and pound sterling. Nevertheless, although US outbound travel to Europe grew by only 1% in the first eight months of 2007, according to the Office of Travel & Tourism Industries in the US Department of Commerce, a number of European destinations showed good results out of the USA, according to ETC. And emerging markets such as India and China are starting to fulfil their growth potential.
The vast majority of international arrivals in Europe are, nonetheless, intra-regional and, as highlighted by the results of IPK International’s European Travel Monitor, outbound trip volume by Europeans rose by 3% from January through August 2007, with the growth in short trips (of 1-3 nights) outpacing that of trips of 4+ nights – again, attributable to a higher than average increase in demand for low-cost/no-frills flights.
New leading outbound markets
Interestingly, the 3% rise in outbound trip volume was achieved despite a stagnation in outbound travel demand by Europe’s leading source markets, Germany and the UK – which, together, account for around 35% of total European outbound trips." ...
"The favourable exchange rates (for markets in the eurozone and the UK) provided a major boost to outbound travel demand, with trips to long-haul destinations growing by 4% as against +2% to destinations in Europe and the Mediterranean basin. As a result, long-haul countries featured strongly in the list of ‘superstar destinations’ – those recording more than 10% growth out of Europe. These included China, Japan, Cambodia, Vietnam and Kenya." ....
"Markets with the highest outbound travel intentions are the UK, Germany, Belgium, Ireland and Norway." ...
for the complete story see:
http://www.smithtravelresearch.com/smithtravelresearch/new
s/findnewsarticle.aspx?article=26400
World Travel Trends Report: Europe Continues To Exceed The Long-term Growth Forecasts
"With a 4% increase in international tourist arrivals from January through August 2007, Europe looks set to achieve another record year in terms of tourism growth, according to the World Travel Trends Report of ITB Berlin and IPK International.
Moreover, as the participants gathered in Pisa for the 15th World Travel Monitor Forum from 24-26 October agreed, the growth is remarkable since it will exceed the World Tourism Organization’s (UNWTO’s) long-term annual growth forecast for Europe of 3% for the fourth consecutive year.
If the 4% increase seen in the first eight months of this year continues through to the end of 2007, this will mean an additional 18 million arrivals – no mean feat for the world’s most mature destination region.
Demand for Central & Eastern Europe seems to have largely bottomed out…
Nevertheless, as data gathered from their members by UNWTO and the European Travel Commission (ETC) shows, the Europe-wide average for inbound tourist arrivals, estimated by UNWTO based on data available at the end of October, masks some fairly wide variations from one sub-region to another." ...
"…and other sub-regions have shown mixed results
Northern Europe, on the other hand, has shown a marked slowdown in growth this year – largely due to the stagnation in international visitors to the UK – although some destinations have turned in good results. Finland is one example, having recorded a growth of nearly 8% in overnight volume from January through August.
Growth to Western Europe has also slowed, according to UNWTO – albeit only from 5% to 3% – attributed in part to Germany’s decline in arrivals through the second quarter of 2007. This was of course hardly surprising, given the huge boost to inbound tourism demand over the same period in 2006 provided by the country’s hosting of the FIFA Football World Cup.
Europe’s star performer this year so far, in terms of sub-regions, is Southern/Mediterranean Europe – up 7% in terms of international arrivals through the month of August. The sharp recovery of Turkey has been a main contributor to the improved performance, but the Balkan States have also performed well above average – in particular Montenegro and Serbia – and Malta has had an excellent year so far, largely thanks to the introduction of low-cost airline services.
European inbound is mainly intra-regional
The performance of long-haul markets to Europe has been very mixed, ETC’s data shows, mainly due to the unfavourable exchange rates – in particular, between the US dollar and the euro and pound sterling. Nevertheless, although US outbound travel to Europe grew by only 1% in the first eight months of 2007, according to the Office of Travel & Tourism Industries in the US Department of Commerce, a number of European destinations showed good results out of the USA, according to ETC. And emerging markets such as India and China are starting to fulfil their growth potential.
The vast majority of international arrivals in Europe are, nonetheless, intra-regional and, as highlighted by the results of IPK International’s European Travel Monitor, outbound trip volume by Europeans rose by 3% from January through August 2007, with the growth in short trips (of 1-3 nights) outpacing that of trips of 4+ nights – again, attributable to a higher than average increase in demand for low-cost/no-frills flights.
New leading outbound markets
Interestingly, the 3% rise in outbound trip volume was achieved despite a stagnation in outbound travel demand by Europe’s leading source markets, Germany and the UK – which, together, account for around 35% of total European outbound trips." ...
"The favourable exchange rates (for markets in the eurozone and the UK) provided a major boost to outbound travel demand, with trips to long-haul destinations growing by 4% as against +2% to destinations in Europe and the Mediterranean basin. As a result, long-haul countries featured strongly in the list of ‘superstar destinations’ – those recording more than 10% growth out of Europe. These included China, Japan, Cambodia, Vietnam and Kenya." ....
"Markets with the highest outbound travel intentions are the UK, Germany, Belgium, Ireland and Norway." ...
for the complete story see:
http://www.smithtravelresearch.com/smithtravelresearch/new
s/findnewsarticle.aspx?article=26400
Wednesday, December 12, 2007
Brookfield in Brazilian retail
from today's GlobeSt:
$965M Delivers Brazil Centers to Brookfield
By Debra Hazel
"RIO DE JANEIRO-In one of the largest real estate transactions in Brazil, Brascan Brazil Real Estate Partners, a retail property fund managed by Brookfield Asset Management, has agreed to purchase a portfolio of five upscale shopping centers in Brazil from the Malzoni Investment Group for approximately US$965 million.
The centers are: the upscale Patio Higienopolis in Sao Paulo; Paulista in Sao Paulo, generally ranked as one of the top 10 centers in the country in terms of sales per square meter; West Plaza in Sao Paulo, one of the busiest centers in the country, with 30 million visitors annually; Botafogo Praia, a vertical center located in one of the most affluent areas in Rio de Janeiro; and Vila Olimpia, opening in Sao Paulo in April 2009. Three of the centers also will undergo expansions by 2009." ...
for the complete story see:
http://www.globest.com/news/1053_1053/gsrglobal/166693-1.h
tml
$965M Delivers Brazil Centers to Brookfield
By Debra Hazel
"RIO DE JANEIRO-In one of the largest real estate transactions in Brazil, Brascan Brazil Real Estate Partners, a retail property fund managed by Brookfield Asset Management, has agreed to purchase a portfolio of five upscale shopping centers in Brazil from the Malzoni Investment Group for approximately US$965 million.
The centers are: the upscale Patio Higienopolis in Sao Paulo; Paulista in Sao Paulo, generally ranked as one of the top 10 centers in the country in terms of sales per square meter; West Plaza in Sao Paulo, one of the busiest centers in the country, with 30 million visitors annually; Botafogo Praia, a vertical center located in one of the most affluent areas in Rio de Janeiro; and Vila Olimpia, opening in Sao Paulo in April 2009. Three of the centers also will undergo expansions by 2009." ...
for the complete story see:
http://www.globest.com/news/1053_1053/gsrglobal/166693-1.h
tml
Cubs sale
from today's Crain's Chicago Business
Tribune expects Cubs sale in first half of '08
Dec. 12, 2007
"(Reuters) — Publisher and broadcaster Tribune Co. said on Wednesday it now expects to complete the sale of the Chicago Cubs baseball team, Wrigley Field and other assets in the first half of 2008.
Tribune put the Cubs up for sale in April with the aim of completing it by the end of this year but the process has taken longer than expected and a winner is still to be determined." ....
"The company plans to use the proceeds to pay down debt as it works to complete an $8.2-billion private buyout." ....
for the complete story see:
http://chicagobusiness.com/cgi-bin/news.pl?id=27420
Tribune expects Cubs sale in first half of '08
Dec. 12, 2007
"(Reuters) — Publisher and broadcaster Tribune Co. said on Wednesday it now expects to complete the sale of the Chicago Cubs baseball team, Wrigley Field and other assets in the first half of 2008.
Tribune put the Cubs up for sale in April with the aim of completing it by the end of this year but the process has taken longer than expected and a winner is still to be determined." ....
"The company plans to use the proceeds to pay down debt as it works to complete an $8.2-billion private buyout." ....
for the complete story see:
http://chicagobusiness.com/cgi-bin/news.pl?id=27420
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