http://www.hotelsforsalenyc.com/
Think how the big guys think... One of the few things I've learned from my previous Regional Director of Finance. After all, we were the team who put the old Carlyle back into biz when the owner died in year 2000. The heirs were not interested in the business and sold their shares to Maritz Wolff & Co & Rosewood Hotels Corp. We improved operations from $30M annually in 2002 to $60M annually before I left in June 2010. And we practically flipped the property value by adding a well-known Spa, renovating rooms, corridors, facade, elevators, lobby & restaurant. It was bought by New World Development Corp. of China just this year (2011) for $570M. Not a bad deal for Maritz Wolff & Co. & Rosewood Hotels.
So what is going on in the hotel property & development biz? The answer is simple. International Diversification. When money goes out, money must come back in.
In a business sense, it was a perfect move. The USD has lost 1/3 of its value in the international market. The United States is at a trade deficit. Diversifying to the international market adds securities to money lost in our domestic stock exchange, and investors will continue to spend money to grow their business. The Carlyle did not fly to China, nor did it have to pay most taxes in China... Employment stays, although there may be conflict of interests between new laws allowing investor work-visa programs and union jobs. Nevertheless, it is good in a sense, because the union now faces the economic reality of having to increase demand for foreign investors. It is time for them to think several times now whether their rules are still mutually beneficial or already unproductive.
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