Boutique hotels finding easy financing in NY.The hospitality industry is so strong that builders are having an easy time getting financing for new construction or renovation projects, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. one of the city leading mortgage brokers. Two years ago, it was still very difficult to find financing for a new project, say the principals of Pergolis Swartz, one of the most active mortgage lenders in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . Today, however, factors that had previously governed the financing of new hotels no longer apply. One market sector that is reaping the benefit of this trend is the independent, stand-alone, boutique hotel Boutique hotel is a term originating in North America to describe intimate, usually luxurious or quirky hotel environments. Boutique hotels differentiate themselves from larger chain/branded hotels and motels by providing personalized level accommodation and services / facilities. . "As little as five years ago, the requirements for financing to hospitality industry were quite stringent," said Jerry Swartz, a partner in Pergolis Swartz Associates. "A hotelier needed a 'flag' image or a national presence, i.e. Hyatt, or Sheraton, etc.; proven management; and at least three years of stabilized operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. history." Today, explains Swartz, in the booming New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of hospitality industry, lenders are financing small stand-alone hotels with little history, no flag image and no national affiliation. However, to secure financing, the borrowers must have deep hospitality expertise. Boutique hotels have 100 rooms or less and offer European-styled charm, chic "persona" ambience, personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. guest services, and are generally owner-operated. Many of them are resurrected former use buildings in up-and-coming neighborhoods or new construction in well-located areas. In New York, for instance, several new hotels are being developed just south of 42nd Street - sliver buildings Sliver buildings are tall slender buildings constructed on lots with a narrow frontage, typically 45 feet or less. Over the past decade, one of the most remarkable advances in tall building design has been their construction to unprecedented slenderness ratios. in vest pockets that hope to take advantage of the redevelopment of Times square. Others are emerging from reclaimed office buildings in locations throughout the city, i.e., Park Avenue South, Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. , SoHo, and the Financial District. The popularity of boutique hotels has prompted at least one major hotel developer to attempt to emulate their ambience in larger hotels. But Richard Pergolis, a partner in Pergolis Swartz Associates, cautions that operating a big hotel is quite different from managing a boutique. "Boutiques offer an intimacy that caters to the individual tourist or business traveler," says Pergolis. "For those who travel frequently, they represent a home away from home." As a result, boutique hotels generate 60 percent or more in repeat business. Larger hotels, on the other hand, have more rooms to fill, so their efforts are aimed at group markets. It remains to be seen if larger hotels can provide small hotel-style amenities and still meet the economy of scale needed to be profitable. |
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