Creativity and distinction in the hotel business is essential to success. Hotel designers around the world have discovered the growing need for individuality in hotel spaces. Every day, hotel owners are ...
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Interstate Hotels & Resorts (IHR) will appeal the New York Stock Exchange's (NYSE's) decision to suspend its shares from trading. The NYSE stopped trading on IHR's share prior to the March 12 market opening, citing the hotel investment/management group's failure to meet continued listing standards that require maintenance of a minimum $15 million market cap over a consecutive 30-day period. Until the appeal is heard, IHR will remain listed but will not trade. A delisting could create "a credit facility covenant issue," according to IHR. Thomas F. Hewitt, ceo, says Interstate is working to resolve any technical defaults by the end of the month so that is can concentrate on obtaining an extension of its credit facility prior to June 30.
Longer term, Hewitt sees some bright spots. "We expect that hotel real estate transaction activity will pick up as the year progresses and significant debt comes due. The most common time for a hotel to change management is when it changes ownership," he says. "As a result, our focus in 2009 will be on third-party management opportunities, both in the U.S. and overseas, with a special focus on distressed situations."
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