Top Stories

First Niagara, KeyCorp Shareholders Approve $3.5B Merger

by Jeff Shaw March 23, 2016

BUFFALO, N.Y. AND CLEVELAND — Shareholders of First Niagara Financial Group (NASDAQ: FNFG) and KeyCorp (NYSE: KEY) have overwhelmingly approved the proposed merger between the two financial giants. The votes were held today at special meetings in each of the companies’ headquarters — Buffalo for First Niagara and Cleveland for KeyCorp. Over 90 percent of shareholders who voted approved of the merger. Shareholders who did not participate counted as “no” votes, but even with those accounted for, approximately 75 percent voted in favor of the merger, according to The Buffalo News. The deal totals $3.5 billion and is structured as KeyCorp acquiring First Niagara, The News reported. “I would like to thank our shareholders for their support and their vote of confidence,” says Beth Mooney, chairman and CEO of KeyCorp. “KeyBank and First Niagara are indeed better together — a powerful combination that will bring a new level of capabilities and expertise to our clients, new opportunities for our employees, and even greater investment in our communities.” KeyCorp and First Niagara entered into a merger agreement on Oct. 30, 2015. The merger is still subject to regulatory approvals. Closing is expected during the third quarter of this year. KeyCorp is …

March 23, 2016

Multifamily Top Stories

Owens Realty Sells Treasures on the Bay Multifamily Complex for $82M

by Katie Sloan March 22, 2016

NORTH BAY VILLAGE, FLA. — Owens Realty Mortgage Inc. (NYSE: ORM) has agreed to sell Treasures on the Bay, a multifamily community located in North Bay Village, to an undisclosed buyer for $82 million. Owens Realty Mortgage owns an 81 percent interest in the property, with the company’s manager, Owens Financial Group Inc., owning the remaining 19 percent. The property, located approximately 10 miles away from Miami in North Bay Village, is comprised of 169 condominium units and 160 apartment units. The community offers one-, two- and three-bedroom units ranging from 925 to 1,289 square feet. Unit amenities include ceramic tile kitchens and baths, European-style cabinetry, hurricane-resistant windows and sliding glass doors, marble counter-tops and floor-to-ceiling tinted glass. Community amenities include a 24-hour fitness center, bayfront boardwalk, controlled access, surface parking, two bayfront pools and wireless hot spots. “We are very pleased to put this property into contract,” says Bryan Draper, CEO of Owens Realty. “We recently completed substantial improvements to this property, further enhancing the company’s book value, and expect this sale will unlock significant embedded equity and provide cash for continued expansion of our lending operations and reduce our overall levels of debt.” A $21.3 million loan was …

March 22, 2016

Sonesta-Hilton-Head-Sims-Patrick-Studio-Interior-Design

Features Hospitality Southeast Feature Archive Top Stories

Coordination Between Hotel Renovation Team Members Is Key to Achieving ‘Wow’ Factor

by Haisten Willis March 22, 2016

ATLANTA — There are many moving parts when refreshing or renovating a hotel property, and the key is engaging everyone involved early and often. This was the message delivered on St. Patrick’s Day, March 17, by a panel of hospitality experts during the 28th annual Hunter Hotel Conference held at the Atlanta Marriott Marquis. Titled “Design to Inspire: Creating the Unexpected,” the breakout session featured a four-member panel that included Libby Patrick, president of Atlanta-based interior design firm Sims Patrick Studio; Bethany Warner, director of design management for Starwood Hotels & Resorts Worldwide; Sam Cicero Jr., president of Plainfield, Ill.-based Cicero’s Development Corp., a general contractor specializing in commercial renovation; and Alan Benjamin, president of Boulder, Colo.-based Benjamin West, a furniture, fixtures and equipment (FF&E) purchasing firm. Johnathan Nehmer, chairman and founder of Rockville, Md.-based architecture firm Jonathan Nehmer + Associates, served as moderator. The session was the first design-focused panel in the conference’s history. “How do we create the unexpected in design?” asked Nehmer. “How do we put that ‘wow’ factor out there and what role does design play in the hospitality experience? What we’re going to talk about today is how designers and contractors and purchasing agents do that.” …

March 22, 2016

Hospitality Top Stories

Marriott Tops Anbang Bid to Acquire Starwood, Raising Offer to $13.6B

by Nellie Day March 21, 2016

STAMFORD, CONN. — Marriott International Inc. (NASDAQ: MAR) has increased its bid to acquire Starwood Hotels & Resorts Worldwide (NYSE: HOT) to $13.6 billion. Marriott had previously offered $12.2 billion to acquire the hospitality company, which owns the Westin, St. Regis, Sheraton and W hotel brands, before being outbid by Beijing-based Anbang Insurance Group at $13.2 billion. The new Marriott offer values Starwood at $79.53 per share, topping Anbang’s offer of $78 per share. Marriott’s initial offer in November would’ve given shareholders 0.92 share of Marriott stock and $2 cash for each share of Starwood they own. The new offer will give shareholders less Marriott stock — 0.8 share — but considerably more cash at $21 per share, according to The New York Times. Under the new agreement, the “break-up fee” — what Starwood will have to pay Marriott if it backs out of the deal — has been increased from $400 million to $450 million. On a conference call this morning, Marriott CEO Arne Sorenson noted that Anbang could still make another offer to disrupt the deal, according to Hotel News Now. The Starwood and Marriott shareholders are both scheduled to vote April 8 on which proposal to accept. “We are pleased that …

March 21, 2016

Features Heartland Feature Archive Loans Top Stories Uncategorized

Chicago Mortgage Banker NorthPoint Capital Leverages Strengths to Enhance Market Penetration

by Christina Cannon March 21, 2016

When CEO Keith Volgman made the decision a year ago to expand his loan origination business, NorthPoint Capital, the Chicago-based mortgage banking operation began the search for the ideal candidate to spearhead that effort. Volgman’s objective was to leverage NorthPoint Capital’s highly competitive, long-term correspondent lending relationships to benefit a larger number of Midwest property owners. Charles Krawitz, who has more than 25 years of experience in commercial real estate finance, turned out to be the perfect fit. After all, Krawitz had a proven track record of boosting deal volume based on jobs he previously held at KeyBank, LaSalle Bank and elsewhere. Last May, Krawitz officially became COO of a new entity, NorthPoint Capital Funding. Operating from the company’s office in downtown Chicago, Krawitz oversees the expansion and training of the loan origination staff. His charge is to grow the scope and scale of the firm’s lending relationships across the commercial and multifamily landscape. While there is no shortage of lenders chasing product in today’s market, money doesn’t flow evenly, observes Krawitz. “It doesn’t necessarily flow into neighborhood assets the way it flows into the institutional space. It doesn’t flow into the rural markets the way it flows into the …

March 21, 2016

Connecticut Hospitality Northeast Top Stories

Starwood Hotels Considers Terminating Merger with Marriott in Favor of $13.2B Proposal from Anbang

by Christina Cannon March 18, 2016

STAMFORD, CONN. — Starwood Hotels & Resorts Worldwide Inc. is considering terminating its planned acquisition by Marriott in light of a new offer from a Chinese-led joint venture. Beijing-based Anbang Insurance Group is leading the new offer of $13.2 billion, which includes investment from J.C. Flowers & Co. and Primavera Capital Limited. The joint venture is collectively known as Anbang Consortium. Starwood, which is based in Stamford, said that the Anbang bid is a superior proposal to the price tag that Marriott agreed to pay in November. Marriott’s cash-and-stock proposal was valued at $68.06 per share, or $13.06 billion as of Thursday’s closing price, according to The Wall Street Journal. Anbang Consortium would pay $78 per share, an increase from the $76 per share proposal it made on March 10. Click here to read the details on the initial Marriott offer. Marriott has until March 28 to make a counter offer to Starwood, and has stated that it “continues to believe that a combination of Marriott and Starwood is the best course for both companies and offers the best value to Starwood shareholders.” Under the terms of the original merger agreement, Starwood, which owns the Westin, St. Regis, Sheraton and W hotel …

March 18, 2016

California Office Top Stories Western

Google to Buy Eight Silicon Valley Office Buildings from NetApp for $250M

by John Nelson March 17, 2016

SUNNYVALE, CALIF. — Google Inc. (NASDAQ: GOOG) has entered into a purchase agreement to buy eight office buildings in Silicon Valley from NetApp (NASDAQ: NTAP) for $250 million, according to a document filed with the Securities and Exchange Commission on March 9. The tech companies amended the filing on March 11. NetApp plans to lease back an unspecified portion of the office footprint from Google, according to the filing. The office properties, located in Sunnyvale in Santa Clara County, include the following: • 1299 Orleans Drive (46,170 square feet) • 1277 Orleans Drive (42,624 square feet) • 1260 Crossman Ave. (95,464 square feet) • 1240 Crossman Ave. (125,648 square feet) • 549 Baltic Way (110,160 square feet) • 641 Baltic Way (88,320 square feet) • 611 Baltic Way (43,372 square feet) • 633 Caribbean Drive (43,372 square feet) According to the filing, the sale is expected to close prior to April 12, 2016, and in no circumstance later than April 22. NetApp, a data storage management provider and servicer, recently announced it would cut roughly 12 percent of its workforce, according to the Silicon Valley Business Journal. NetApp currently has more than 12,000 employees in more than 150 offices worldwide. …

March 17, 2016

State of the Industry Hunter Hotel Conference

Features Georgia Hospitality Southeast Top Stories

Hotel Experts Preach Opportunistic Mindset at Hunter Hotel Conference

by John Nelson March 17, 2016

ATLANTA — Too often hoteliers are so immersed in executing their business plans they miss golden opportunities that suddenly arise, according to hotel experts speaking at the 28th annual Hunter Hotel Conference. During the “State of the Industry” panel, executives from Blackstone, Starwood Capital Group, Rockbridge, MCR Development LLC and Apple Hospitality REIT took the stage to discuss opportunities they see in the marketplace. Tyler Morse, CEO and managing partner of MCR Development, said the lodging industry in the United States will present ample opportunities in the next couple years. “The hotel space in particular in the U.S. economy is going to be great in 2016 and 2017. The rest of the world is kind of a disaster,” said Morse. “Funds are coming to the U.S. as a flight to quality. The U.S. is where the growth is, and the hotel business is a beneficiary of that.” In a real-world example of being opportunistic, Brian Kim, managing director of real estate at Blackstone, spoke about how the firm’s recent $6.5 billion sale of Strategic Hotels & Resorts to Beijing-based Anbang Insurance Group Inc. wasn’t the original strategy for Blackstone. Having just closed on the Strategic purchase in December 2015, Blackstone’s …

March 17, 2016

California Hospitality Top Stories Western

Luxury Hotel in San Diego to Open $107M Expansion in June

by Haisten Willis March 16, 2016

SAN DIEGO — Marriott Marquis San Diego Marina, owned by Host Hotels & Resorts Inc. (NYSE: HST), is in the final stages of a $107 million expansion. Located on downtown San Diego’s waterfront, the expansion of the luxury hotel and convention center will be complete in June. It will include two new ballrooms along with Marina Terrace, an outdoor area on the bay and the Marine Walk public walkway. The project also includes a 16-screen video wall system and a Swarovski crystal ceiling installation. A multi-million dollar makeover of the resort’s guest rooms and public areas was completed in 2011. The new construction will increase the center’s meeting, indoor and outdoor event space to 280,000 square feet. The largest portion of the expansion was adding two 36,000-square-foot ballrooms, known as Marriott Grand Ballroom and Pacific Ballroom. Each is capable of accommodating up to 3,700 guests, and both will have foyers reaching up to 25,000 square feet, offering options to extend the space. The new building features a blue glass design, which makes use of natural light. tvsdesign was the project’s architect. “We drew inspiration from the host community with its iconic coastline, which we incorporated into the design, capturing a sense of …

March 16, 2016

Hospitality Kansas Midwest Multifamily Top Stories

WaterWalk Hotel Apartments Signs $150M Deal to Develop Eight Properties in Texas, Colorado

by Katie Sloan March 15, 2016

WICHITA, KAN. — WaterWalk Hotel Apartments has inked a deal with Rockford Development Group to develop eight WaterWalk franchises in San Antonio, Dallas, Austin and Denver. Paul Roberts and hotel industry veteran Rob Mossburg are leading Rockford’s end of the venture. Under the terms of the deal, Rockford will become a WaterWalk franchisee. The cost of building the eight locations was estimated at $150 million. Rockford’s construction arm will also become the preferred builder for WaterWalk-owned locations. Wichita-based WaterWalk’s hybrid hotel and apartment model is a play on the extended-stay model, combining traditional hotel services within a gated, apartment-like community. The complex offers one-, two- and three-bedroom floor plans with the option of being furnished or unfurnished upon rental. Amenities at WaterWalk include all-inclusive pricing, full-sized appliances in a modern kitchen, high-speed Internet, satellite television with premium channels and DVR, housekeeping, fitness club membership, a communal bicycle rental program, local transportation, and free breakfast. Entrepreneur Jack DeBoer, founder of Residence Inn, Summerfield Suites, Candlewood Suites and Value Place, created the new concept, which opened its first site in Wichita in 2014. WaterWalk locations target corporate housing needs, holiday travelers requiring an extended stay and those moving to a new city …

March 15, 2016

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