bly be 5% to 10% higher than they would
have been a year ago today.” Linneman
concluded that, “If you keep the cash flow
going, the property value won’t be much
different.”—Danielle Douglas
NYLO Opens First Hotel,
Adds Select-Serve Flag
Although it only has one property now
open, NYLO Hotels has launched an
extension of its boutique full-service
brand as well as a franchising program.
XP by NYLO Hotels is characterized as
the select-service version of its parent flag.
There is one full-service NYLO Hotel now
operating in Plano, TX, with another scheduled to deliver near Providence, RI this
summer. Others are planned in suburban
Dallas and the Denver/Boulder, CO area.
At a press conference held during last
month’s Americas Lodging Investment
Summit in Los Angeles, John Russell, CEO
of the Atlanta-based chain, said that XP by
NYLO fills “a void in the cool select-serve”
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segment. As for starting an extension of a
brand that has only one property now
open, Russell said that due to the Internet,
brands do not need a critical mass of many
hotels to reach public awareness. “You can
have a brand with one hotel,” he said. “W
Hotels did it. It’s more about product
design.” No locations have yet been identified for an XP by NYLO property.
Although both versions will utilize an
urban loft layout for its rooms and feature
high-tech touches, XP by NYLO can be
built on a smaller footprint and for a less
expensive per-key cost. According to
Russell, construction of an XP property can
occur on a two-acre site and for $88,000 a
room versus 4. 5 acres and $130,000 a key
for a full-service NYLO. Average daily
rates for a NYLO run between $120 and
$220, while an XP will charge $90 to $110.
A full-service NYLO is more amenable to
a larger secondary city and mixed-use
developments, he said. The XP version can
go almost everywhere and can also be
placed next to a full-service NYLO Hotel.
Both brands will now be franchised
under the direction of Michael Brown,
who recently joined the company as vice
president of franchise development.
Introduced in 2005, Russell said the original intention was to franchise the brand.
The company hopes to have 50 NYLO
Hotels open or under contract in the US by
2010. “Franchising will be the engine for
our company,” he said.—Maria Wood
Experience
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nationwide from small, single loan defeasances to
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major CMBS servicer.
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US Still Holds Top Spot
For Global Investment
As a nod to the strength of the US property market, New York City and
Washington, DC, respectively, have
ranked as the top two global cities
among foreign investors for commercial
real estate. This was among the findings
of the Association of Foreign Investors
in Real Estate’s 16th annual survey,
which was conducted in the fourth quarter of 2007 among the association’s
nearly 200 members.
Notably, this is the first time that US
cities have taken the first and second positions in the global city category. London,
which tied for second, previously held the
top spot, while New York City inched up
one notch and Washington, DC moved
from fourth place.
According to James A. Fetgatter, chief
executive of Washington, DC-based
AFIRE, in spite of the survey being carried out in the midst of the suprime fallout, respondents remained bullish on
US real estate. “I think on a risk/return
basis, there was the perception that the
