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Business & Finance

HREC Arranges Sale of the Beverly Heritage Hotel Milpitas, California

DENVER, CO./Phoenix, AZ. January 4, 2017 – HREC Investment Advisors is pleased to announce it has arranged the sale of the 236-guestroom Beverly Heritage Hotel located in Milpitas, California. The boutique hotel was acquired by HPT IHG-2 Properties Trust.

Bill Murney, Senior Vice President, and Scott Stephens, COO and Senior Principal, exclusively represented PHF Ruby LLC during the transaction.

“Sonesta has been looking for a west coast presence, and the new Sonesta Silicon Valley provides that beachhead property. Sonesta will spend millions of dollars on renovating every part of the hotel to provide the first class accommodations they have built their reputation around,” stated Murney.

The property has great access and visibility in addition to being surrounded by the numerous corporate demand generators including many of the world’s largest technology companies, including Cisco’s HQ a couple of miles away,, and the newly built Levi Stadium home of the San Francisco 49ers and Super Bowl 50. The strength of the Silicon Valley economy has attracted new international and domestic routes to the Mineta San Jose International Airport (SJC) which also benefits the hotel.

About HREC®: HREC® is the nation’s leading lodging and gaming real estate advisory firm specializing in property sales, mortgage brokerage, equity/JV structuring, consulting (market studies and appraisals), and litigation support. With offices throughout North America, HREC® is distinguished by unwavering commitment to client service and success through its team approach, intellectual capital and hotel/casino specialization.

For addition information on the property, please contact:

Bill Murney
Senior Vice President
bmurney@hrec.com
602.279.8427

Scott Stephens
COO & Senior Principal
sstephens@hrec.com
813.635.0600

Ashley Hunt
Director of Marketing
ahunt@hrec.com
303.267.0057

Coming Up In The December Online Hotel Business Review




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Feature Focus
Hotel Law: Issues & Events
There is not a single area of a hotel’s operation that isn’t touched by some aspect of the law. Hotels and management companies employ an army of lawyers to advise and, if necessary, litigate issues which arise in the course of conducting their business. These lawyers typically specialize in specific areas of the law – real estate, construction, development, leasing, liability, franchising, food & beverage, human resources, environmental, insurance, taxes and more. In addition, issues and events can occur within the industry that have a major impact on the whole, and can spur further legal activity. One event which is certain to cause repercussions is Marriott International’s acquisition of Starwood Hotels and Resorts Worldwide. This newly combined company is now the largest hotel company in the world, encompassing 30 hotel brands, 5,500 hotels under management, and 1.1 million hotel rooms worldwide. In the hospitality industry, scale is particularly important – the most profitable companies are those with the most rooms in the most locations. As a result, this mega- transaction is likely to provoke an increase in Mergers & Acquisitions industry-wide. Many experts believe other larger hotel companies will now join forces with smaller operators to avoid being outpaced in the market. Companies that had not previously considered consolidation are now more likely to do so. Another legal issue facing the industry is the regulation of alternative lodging companies such as Airbnb and other firms that offer private, short-term rentals. Cities like San Francisco, Los Angeles and Santa Monica are at the forefront of efforts to legalize and control short-term rentals. However, those cities are finding it’s much easier to adopt regulations on short-term rentals than it is to actually enforce them. The December issue of Hotel Business Review will examine these and other critical issues pertaining to hotel law and how some companies are adapting to them.