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 February Online Hotel Business Review




Feature Focus
Social Media: Interacting with the Hotel Customer
Consider these astonishing numbers: 1.49 billion active monthly Facebook users. 1.1 billion active monthly YouTube users. 320 million active monthly Twitter users and nearly 400 million registered users on LinkedIn. 400 million active monthly Instagram users and 200 million active Google+ users. The power and reach of social media is an awesome force and it has transformed how hotels interact with their customers. In the past year, social media advertising spending increased 33.5% to nearly $24 billion dollars. Social networks are being utilized by hotels to reach more visitors, expand brand awareness, enhance brand reputation and to establish more direct and personal communication with their customers. Savvy hotel operators are adopting a comprehensive social media strategy, and there are several emerging trends to note. Video continues to be a powerful and influential element in social media marketing, with 70% of companies saying that it is their most effective marketing tool. Video generates a 62% higher engagement rate than photographs alone, and with new social sites like Meerkat and Periscope which offer live video streaming, those numbers will only increase. Sponsored content is another growing trend. Though advertorials have been around for decades, hotels are finding new ways to maximize the visibility of their content. Some are placing sponsored content on Facebook, or on influencer blogs. Another trend is the integration of a “Buy Now” button into social media websites. Customers will be able to make purchases without ever having to leave their favorite social sites. This development is a major convenience for customers and should also be an additional revenue source for hotels. The February Hotel Business Review will explore these issues and examine how some hotels are successfully integrating social media into their operations.