International Market Place Will be horribly razed - General Tiki

C christiki295 Member LA-2547 mls east Hawaii &5500 Easter Is Joined: Apr 09, 2003 Posts: 3837	C christiki295 Posted posted on Mon, Nov 30, 2009 6:48 PM On 2009-07-01 10:48, Rum Balls wrote: Here's the latest... http://www.hawaiimagazine.com/blogs/hawaii_today/2009/6/30/Waikiki_International_Market_Place_Update The article states: the landowner, Queen Emma Land Co., has requested new proposals from developers—not just for the Market Place, but for a 6.48 acre parcel which also includes the Waikiki Town Center (the three stories of shops on the Kuhio Avenue end of the Market Place), plus Perry’s Smorgy and the Food Pantry on Kuhio. Developers can, at their option, also include the adjacent 352-room Miramar Hotel. I strongly suspect the hotel will be hte biggest leasehold; and generate the most profit. However, the hotel market, particularly in Waikiki, may not be so lucrative to support necessary financing: Hawai'i has more troubled hotel debt per room than any other state, about $23,256 compared with $5,083 in California and $5,345 in Florida, according to a recent Wall Street Journal story based on data from Real Capital Analytics. The story said Hawai'i's distressed debt tied to hotels totals nearly $1.6 billion. "Right now is an absolutely horrible time to be in the hotel business," said Ben Thypin, senior market analyst for market research firm Real Capital Analytics. What happens when a hotel loan goes bad? Banks are much less willing to seize them than houses because running a hotel requires know-how. But some hotel owners are just handing back the keys where property values have plummeted. In most cases, it is investment funds falling behind on payments, not major hotel companies. They generally don't own much property, instead franchising brands and earning a percentage of sales. Most of the 1,231 U.S. hotels and casinos with troubled financing are remaining open. So, in the short term at least, consumers can expect to see deals on room rates for at least another year. Executives at STR Global, the hotel research firm, expect demand to rise 1.6 percent in 2010, but average rates to drop 3.4 percent. Not in the 20 years the firm has collected hotel data has supply and demand been so far apart — not even in the early 1990s recession or after Sept. 11, 2001. Hawai'i properties that have gotten into debt trouble include the Maui Prince Resort, the Fairmont Orchid Hawaii and the venerable Ilikai on O'ahu. The Maui Prince was placed in receivership in September after its monthly operating losses had reached $1 million. http://www.hawaiimagazine.com/blogs/hawaii_today/2009/6/30/Waikiki_International_Market_Place_Update

On 2009-07-01 10:48, Rum Balls wrote:
Here's the latest...

http://www.hawaiimagazine.com/blogs/hawaii_today/2009/6/30/Waikiki_International_Market_Place_Update

The article states:
the landowner, Queen Emma Land Co., has requested new proposals from developers—not just for the Market Place, but for a 6.48 acre parcel which also includes the Waikiki Town Center (the three stories of shops on the Kuhio Avenue end of the Market Place), plus Perry’s Smorgy and the Food Pantry on Kuhio.

Developers can, at their option, also include the adjacent 352-room Miramar Hotel.

I strongly suspect the hotel will be hte biggest leasehold; and generate the most profit.
However, the hotel market, particularly in Waikiki, may not be so lucrative to support necessary financing:

Hawai'i has more troubled hotel debt per room than any other state, about $23,256 compared with $5,083 in California and $5,345 in Florida, according to a recent Wall Street Journal story based on data from Real Capital Analytics. The story said Hawai'i's distressed debt tied to hotels totals nearly $1.6 billion.

"Right now is an absolutely horrible time to be in the hotel business," said Ben Thypin, senior market analyst for market research firm Real Capital Analytics.

What happens when a hotel loan goes bad? Banks are much less willing to seize them than houses because running a hotel requires know-how. But some hotel owners are just handing back the keys where property values have plummeted.

In most cases, it is investment funds falling behind on payments, not major hotel companies. They generally don't own much property, instead franchising brands and earning a percentage of sales.

Most of the 1,231 U.S. hotels and casinos with troubled financing are remaining open. So, in the short term at least, consumers can expect to see deals on room rates for at least another year. Executives at STR Global, the hotel research firm, expect demand to rise 1.6 percent in 2010, but average rates to drop 3.4 percent.

Not in the 20 years the firm has collected hotel data has supply and demand been so far apart — not even in the early 1990s recession or after Sept. 11, 2001.

Hawai'i properties that have gotten into debt trouble include the Maui Prince Resort, the Fairmont Orchid Hawaii and the venerable Ilikai on O'ahu. The Maui Prince was placed in receivership in September after its monthly operating losses had reached $1 million.

http://www.hawaiimagazine.com/blogs/hawaii_today/2009/6/30/Waikiki_International_Market_Place_Update

Post #496503 by christiki295 on Mon, Nov 30, 2009 6:48 PM