Wondering What’s in Store for the
Market in the 4th Quarter?
FIND OUT AT
4th ANNUAL
SEPTEMBER 3, 2008 — Westin Galleria Houston
Featured Panel:
State of the Market Town Hall Meeting:
How Long Can the Houston Market Continue to Thrive in These Times of
Economic Uncertainty?
Moderator Panelists
Fred Baca
President
Colliers International
Houston
Chip Clarke
President, Gulf Coast &
Mountain Regions
TRANSWESTERN
Randall Davis
Chairman
Randall Davis
Companies
Doug Little
EVP/Managing Director-
Central Division
PM Realty Group
Tom Melody
Vice Chairman
CBRE Melody
Michael Wyatt
Co-Founder and
Managing Director
CORE Real Estate
SPONSORS:
▪ Brookfield Properties
▪ CB Richard Ellis
▪ Colliers International
▪ Moody National
Companies
▪ Marcus & Millichap HOSPITALITY SPONSORS:
▪ NorthMarq ▪ Axis Tenant Advisors
▪ PM Realty Group ▪ CORE Real Estate ▪ TRANSWESTERN ▪ Griffin Partners ▪ KDC
▪ Trammell Crow Company ▪ Westmount Realty Capital
REGISTER TODAY: realshareconferences.com/houston
MEDIA SPONSORS:
CONTACT US
General Information: Bradley White
(212) 981-9940 or brad.white@incisivemedia.co
Sponsorship Information: Terry Bisogno
(212) 645-3825 or terry.bisogno@incisivemedia.com
PROMOTIONAL SPONSORS:
“In some
places, you
can’t sustain a
$500,000-a-key
asset. There will
be opportunities
for firms to
recapitalize
those deals.”
JOHN S. HAMILTON
PYRAMID ADVISORS
lion or so that’s due. It’s situations like
these that are going to create some
opportunities.
WOOD: It’s been said that hotel
operators and franchise companies
have done better in down times
because of their dependence on
fees rather than real estate. Is that
the case today?
GOLDMAN: The brand management and
franchise business is actually a very good
business in a downturn because you have
operating leverage. Hilton is adding 350 to
400 hotels a year, so we’re expanding our
fee base. Granted, we’ll see fewer fees as
revenues go down, but on a proportional
basis, we’re still able to grow significantly.
While you make more money on real
estate when you dispose of it, over the
long term you have an even level of profitability in a brand-managed franchise
company because of the diversity of the
fee stream and the operating leverage
associated with it.
JOHNSON: Historically, any time we
went into an economic downturn, it was
always the companies who had a diverse
investment portfolio in terms of franchised, owned and managed properties
that came out strong on the back end.
Although franchising is a great model in a
down cycle, you should always maintain
that balance. There are good and bad real
estate cycles, and this one is a little different than what we’ve seen in the past.
WOOD: How is this cycle different?
JOHNSON: We have less supply coming in
than we’ve had in the past. We have the
mortgage situation, the weakened dollar
and the continual shrinkage of the globe.
Although I’ve been through a couple of oil
crises in my time, it’s different today
because it is much more an international situation than before. We’re facing a convergence of issues coming into play at one time
and then trying to recover from all of them.
