Tag Archive for garfield traub development

Garfield Traub Development DPAC Rated #1 Top-Selling Theater in U.S.

DPAC also rated #2 top-selling theater in the world

DPAC

Durham Performing Arts Center - Durham, NC

The Durham Performing Arts Center (DPAC), developed by Garfield Traub in partnership with Chapel Hill architect Szostak Design in Durham, North Carolina, has proven itself yet again against the best of the best and is now rated #1 by trade publication Pollstar as the top-selling theater in the U.S. for the first half of 2012.

If that were not impressive enough, DPAC scored the #2 position in the top 100 selling theaters in the world, second only to Mexico City’s Auditorio Nacional.  And since the rationale for the development of the DPAC was doubted by many prior to its opening in 2008, this is a very special achievement for all those involved in the DPAC from development to delivery.

“It all starts with great shows, and for us to have two big multi-week blockbusters in the same season really tipped the attendance scales”, said Bob Klaus, DPAC’s General Manager in the Durham News Service. “It’s a credit to Nederlander and PFM and the great shows they bring us, this will truly be a season to remember.”

Today the attendance statistics have been released for DPAC’s 2011-2012 season, which includes 200 performances bringing in a total of 417,180 guests and 67 total sellouts. The highest attended shows were Radio City Christmas Spectacular with 38 performances and Wicked with 32 performances.

“We at Garfield Traub are extremely proud of what the DPAC has accomplished,” said Garfield Traub Principal Greg Garfield. “It is an honor to be able to say we participated in the development of the project, and we could not be happier for all those involved.”

Since the opening of the DPAC in 2008, the theater has consistently ranked on the top of Pollstar’s top-selling theater rankings, but has also won other awards such as:

  • Numerous local Reader’s Choice Awards
  • The Independent Weekly’s “Best of” winner for Best Theater Venue – 4th Consecutive Year
  • The Herald Sun’s Reader’s Choice Award for Best Live Entertainment – 4th Consecutive Year
  • Raleigh’s Metro Magazine’s Standing Ovation for Best Theater – 3rd Consecutive Year
  • Durham Magazine – Best Place for Live Music and Best Place for Live Theater – 2nd Consecutive Year
  • And #3 in gross ticket sales among venues with a capacity of 5,000 or under in the soon to be published July 28th mid-year charts for Billboard Magazine.

Since the DPAC’s opening in 2008, 520 ticketed events have been presented drawing in more than one million attendees.  For more information about the DPAC and how it was successfully developed, visit the Garfield Traub website.

The Omni Dallas Hotel Revenue Equals Savings for Taxpayers

The Omni Dallas Convention Center Hotel

The Omni Dallas Convention Center Hotel

What if your city could develop a hotel like the Omni Dallas Hotel at no cost to taxpayers and help transform your city into a place where investors, developers and new businesses come to create new jobs, new revenue and a variety of new and improved amenities that ultimately equate to financial security for the city and for those who live in it? It so happens that cities everywhere are doing this successfully with the construction of large developments such as Hotel and Conference Centers, Performing Arts Centers and other large mixed-use developments that attract tourists and visitors from other cities and promote growth and tourism.

As a very current example, the Omni Dallas Hotel, owned by the city of Dallas, reports that it is thriving to the degree that hotel officials project that it will bring in enough net revenue to meet its first-year debt obligations, not requiring Dallas taxpayers to contribute to the mortgage payment. Furthermore, financial projections also show that taxpayer support may continue to be unnecessary in years to come.

The Omni Dallas hotel was built with $477 million in city-backed bonds, and with the current performance, the Omni Dallas Hotel Manager Ed Netzhammer sates that he is confident that every penny of the city’s financing will be accounted for by the hotel’s revenue, indicating an excellent outlook for Dallas taxpayers.

According to the 2012 forecast displayed in The Dallas Morning News, the following was reported for the Omni Dallas Hotel.

The Omni Dallas Hotel 2012 Financial Forecast

  2011 2012
Occupancy Rate 58.5% 57%
Daily Room Rate $121.97 $169.34
Revenue Per Room $71.39 $96.52

The above numbers are steadily rising, and the Omni Dallas Hotel officials noted that in January, paid occupancy was a remarkable 65 percent, or 11 percentage points above projections. These 2012 numbers put the Omni Dallas Hotel on the same level as the Hilton Anatole. The combination of November – January numbers alone exceeded projections by 34%.

The most important information from the reports comes from the fact that in 2012, the Omni Dallas hotel expects to get 70 percent of sales from groups and conventions alone. “The inclusion of headquarters hotels is crucial for convention centers,” says Steve Moffett President of the Hospitality Division of Dallas-based development company Garfield Traub Development. “The numbers show that headquarters hotels enhance the performance of their convention centers, allowing them to meet and often exceed expectations.”

In the The Dallas Morning News article titled, “Omni’s 2012 sales expected to cover first-year debt payment,” the Omni Dallas Hotel manager Mr. Netzhammer expects his hotel to be the headquarters hotel or co-headquarters hotel in 16 citywide conventions. The 16 conventions are expected to fill up most downtown hotels, meaning not only great news for the Omni Dallas Hotel, but also for other hotels, restaurants, departments stores and other various businesses located in close proximity to the Dallas Convention Center.

Another great example of this type of success is not a hotel, but a Performing Arts Center. The Durham Performing Arts Center (DPAC) in downtown Durham, NC, had its skeptics before it was built, but now the development is very successful generating revenue to not only operate profitability, but enhance the numerous businesses surrounding it in downtown Durham. In addition, it now ranks among the top 10 in attendance of touring Broadway theaters nationally, and generated multiples of its originally-estimated net revenue. Since opening, the DPAC created new demand for restaurants, hotels and shops surrounding it.

To discuss how your city can achieve similar success like the Omni Dallas hotel and the Durham Performing Arts Center by building facilities which create new economic development for the community, contact Garfield Traub Development.

DALLAS CONVENTION CENTER HOTEL DEVELOPMENT BRINGS BIG BENEFITS TO CITY

Omni Dallas Convention Center Hotel

Omni Dallas Convention Center Hotel

The new 1,000-room Dallas Convention Center Hotel made front page of the Dallas Morning News today announcing its debut this Friday. Along with that debut, the City has a lot more to be excited about with actual revenue earnings climbing well above the originally projected numbers.

This rise in revenue is not uncommon with Convention Center Hotels despite the down economy. Convention Center Hotels have proven, if planned well, to bring not only success in city revenue, but also in creating more jobs, boosting revenue for surrounding businesses, and in bringing more visitors to their cities.

The idea for the almost $500 million Dallas Convention Center Hotel stemmed from the City wanting to reap the benefits mentioned above. Luckily for Dallas, the hotel is already doing just that and it has not even opened yet.

Omni Dallas Convention Hotel Roof Top

Omni Dallas Convention Center Hotel Roof Top

According to City figures, The Dallas Omni Hotel has booked 273 meetings and conventions through 2017. And the Dallas Convention Center is already reaping the benefits from 89 of those that will use their space. Additionally, figures presented to the Dallas Morning News by Chief Financial Officer for the Dallas Convention Center & Visitors Bureau Matthew Jones, cited that in fiscal years prior to voters approving the hotel, the city booked 31 large conventions. In the fiscal years immediately following the vote, there were 45.

It is these reports that also have the City excited that they will more than likely not have to use any of their reserve funds to pay back any part of the $497 million in bonds used to build the hotel. The numbers also ease the City’s concerns that the taxpayers, who almost killed the hotel project in May of 2009 with a referendum will be angry with them in the end.

Durham Performing Arts Center (DPAC)

Durham Performing Arts Center - Durham, NC

“This anger is not uncommon with taxpayers ever since the onset of the current recession,” said Ray Garfield of Dallas-based Garfield Traub Development. “Taxpayers worry that their money is going to frivolous desires by the City, but it is actually projects like the Dallas Omni Hotel, Durham Performing Arts Center in Durham, North Carolina, and many others that prove that even though times might be tough, it is hospitality and entertainment developments like these that are helping to keep cities going and looking their best.”

To find out more about how a Convention Center Hotel or Performing Arts Center might help your city, contact Garfield Traub.

Sheraton at the Overland Park Convention Center – References

Sheraton at the Overland Park Convention Center

Sheraton at the Overland Park Convention Center, Overland Park, KS

City of Overland Park, Kansas Director of Public Works Robert D. Lowry

March 14, 2006

TO WHOM IT MAY CONCERN:

During the period June 1999 through December 2002 I had the distinct privilege of serving as the Owner’s Representative for the City of Overland Park, Kansas for the design and construction of a new Convention Center and adjacent headquarters hotel. This was a very unique and complex project because the City Council made a commitment to fund the hotel without expending any public funds.

To make this happen, a request for proposals (RFP) was issued by the City for a development team to design, construct, finance, operate and maintain the hotel. The team selected for this project was led by Garfield Traub Development LLC. To say that the performance of this team exceeded all expectations of City staff and the City Council would be a gross understatement.

Given a very tight hotel market and a major down turn in the economy, the odds were against this project happening. But because of the leadership and expertise that Ray Garfield, Tony Traub and their team provided, the hotel was completed well ahead of schedule, under budget and the City Council made good on its commitment that no public funds would be used for the project. The end product was adopted by the Sheraton Hotel chain as its new standard, and the project was nationally recognized as the Public Sector Project of the Year by the Design-Build Institute of America (DBIA).

I have been involved in construction and construction management for almost forty years and have never seen a project executed as flawlessly as the Overland Park Sheraton Hotel at The Convention Center. The Garfield Traub team never lost sight of the desired outcome, was totally focused on exceeding the expectations of their client, and was comprised of the most professionally competent group of design, construction and management professionals I have ever had the pleasure of working with. I would actively seek an opportunity to work with the Garfield Traub organization on any type of development project in the future. They truly “under promise and over deliver.”

Please feel free to contact me at any time if you have any questions about this world-class organization.

Sincerely,

Robert D. Lowry
Director of Public Works

City Manager of Overland Park, Kansas (retired) Mr. Donald E. Pipes

February 2003

To Whom It May Concern:

In November 2002, the City of Overland Park, Kansas opened its new Sheraton Hotel and adjacent Convention Center. The dual project was a challenging goal of the City for fifteen years. The financing and development of a project of this magnitude is the most daunting and crucial phase of a project such as ours. Financing of the hotel component was key to the ultimate success of the complex and necessary for the City to move forward with the financing and development of the convention center.

Serving as City Manager of Overland Park from 1977 – 2002, I was deeply involved with all aspects of this project. Most important of all was the financial impact of the undertaking. Overland Park is a city of approximately 165,000 residents and enjoys a AAA general obligation bond rating from Moody’s and Standard and Poor’s. It was imperative that the City hire a strong, knowledgeable group to work on the financing and construction of the hotel.

Development proposals were gathered and carefully analyzed. Garfield Traub was selected as the most qualified and able to successfully negotiate all project documents and to structure and place the financing for the hotel. During the negotiations and structuring of the financing, Garfield Traub also provided vital leadership over the design, value-engineering and pre-construction process. The group exhibited extremely competent leadership and creative financing skills allowing us to break ground on the convention center and hotel for a 2002 grand opening.

The group also provided oversight of construction and pre-opening activities for the hotel and the facility was completed ahead of schedule and approximately $1.5 million under budget. Garfield Traub is also the Asset Manager for the city’s Hotel Corporation.

I highly recommend Garfield Traub Development. Their expertise proved to be invaluable to the City of Overland Park. Anyone considering site visits during the selection process is urged to include Overland Park on your visitation agenda.

Sincerely,

Mr. Donald E. Pipes
City Manager (retired)

DoubleTree Hotel and Conference Center – References

Doubletree Hotel and Conference Center

Doubletree Hotel and Conference Center Bay City, MI

Gastonia City Manager James M. (Jim) Palenicki

May 3, 2011

TO WHOM IT MAY CONCERN:

It is my distinct pleasure to offer this letter of reference and recommendation on behalf of Garfield Traub Development, LLC, and in particular its two principals, Ray Garfield and Tony Traub.

Beginning in Summer, 1996, and extending through the Autumn of 2002, I served as City Manager for the City of Bay City, Michigan. It was impressed upon me early in that tenure that the principally-defined redevelopment goal of our community was to finance and construct a first-class, full-service, Downtown Hotel/Conference Center of true “destination” quality. In fact, for well over a decade previous to that time a series of roadblocks and outright failures had left the project as little more than an unfulfilled dream that many were dismissing as “impossible”. Then, however, I discovered Garfield Traub Development and its consummately-skilled leaders, Ray Garfield and Tony Traub.

With their combined expertise in complex, tax-exempt bond transactions and Hospitality-oriented real estate deals, we were ultimately able to make possible a financing and development package that truly would have remained impossible using any other developers or consultants, under any other scenarios.

Drawing upon the utmost in financial creativity and personal relationships within the national financial and hospitality communities, Ray and Tony allowed us to experience the on-tune, in-budget, ground­breaking on a $34 million, 150-room, Double Tree-branded hotel and conference center that, in many ways, serves as the national “model” for anchoring urban-core redevelopment and success in a small city.

The Garfield Traub Development team, along with their excellent supporting organization, not only made the difference in financing; they also assisted in the identification and selection of an operator and design team; acquired a top national franchise; assisted with the negotiation of all critical legal, operational, and financial documents; and, provided important management support for the public relations and communications efforts necessary to gain stakeholder support.

Even though I am now many years removed from my tenure in Bay City, I can state that I remain steadfast in my admiration for the ability and professionalism possessed by these two men and their supporting organization. I can state unequivocally, that in their collective absence, the City of Bay City would not have completed the successful, and otherwise-long-awaited fulfillment of its primary redevelopment objective.

If you should wish to speak to me further about my experiences with the Garfield Traub Development team, or about the financing and development of the Bay City Double Tree Hotel and Conference Center, please don’t hesitate to contact me at my home number (704) 854-4178; or e-mail palenicki@bellsouth.net at your convenience.

Sincerely,

James (Jim) M. Palenicki
Gastonia City Manager

 

Bay Area Convention and Visitors Bureau
Executive Director Shirley M. Roberts

July 12, 2004

Dear Ray:

There is an energy and excitement in Bay City today that didn’t exist a few years ago. People here are beginning to see the potential of this sleepy little town along the Saginaw River. They are finally beginning to believe we can make great things happen here. It’s really amazing how one new, significant development can change the course of an entire community.

The concept of building a hotel/conference center in Downtown Bay City had been on the drawing board for at least 15 years. One after another, local officials attempted to negotiate a deal with what seemed the “private developer du jour.” Several times, just when it seemed everything was coming together nicely, one or the other (local officials or private developer) backed out and our community’s dreams for a new landmark came to a screeching halt. Following this series of starts and stops, people here were largely skeptical a deal could ever materialize.

Garfield Traub Development entered the scene during a period when the community was soundly divided on the issue. Most who were knowledgeable about the many failed attempts to work with private developers on the project thought they had seen and heard it all. The non-profit model you suggested was an entirely new approach and seemed, at first glance, too good to be true. In fact, the model worked exceedingly well. Garfield Traub successfully leveraged approximately $12 million in grants, $3.4 million in loans, and a $4 million loan from the City’s economic development corporation to secure $15.4 million in tax-exempt hotel revenue bonds to finance the project.

Following more than a decade of debate, and after only 18 months of construction, Bay City celebrated the first guest at its new Doubletree hotel and conference center in early June 2004. The first-class, full-service facility offers magnificent views of the Saginaw River and the Wenonah Park amphitheater; 150 guest rooms including two suites; 15,000 square feet of meeting space and a 7,600 square foot ballroom.

The Doubletree has indeed become the new landmark we hoped it would be. Still in its infancy, the property has received rave reviews for its accoutrements, meeting facilities and service. These, too, can be attributed to Garfield Traub and the extensive network you brought to the table. From the layout of the meeting facilities to securing the Hilton Corporation Doubletree brand…from selecting the architects to choosing the right interior design firm…Garfield Traub’s influence permeates the facility and has made a permanent mark on Bay City’s downtown riverfront landscape.

I certainly enjoyed working with you on this project and thought you should know how much our new hotel and conference center has impacted our community. Please feel free to call on me if I can be of any help to you in the future.

Best personal regards,

Shirley M. Roberts
Executive Director

Los Angeles Unified School District – Reference

Carmen Lomas Garza Primary Center (Dena Primary Center)

Carmen Lomas Garza Primary Center (Dena Primary Center)

Deputy, Chief Facilities Executive Jim Cowell

September 5, 2007

To Whom It May Concern,

Garfield Traub recently acted as the developer of “8″ Primary Centers in South Central Los Angeles for LAUSD.

Garfield Traub did a superb job coordinating and managing the simultaneous development of these eight separate projects, interfacing with eight different LAUSD Representatives at eight different locations, coordinating delivery by the builder and its eight separate project staffs and more than 200 subcontractors in accordance with eight distinct sets of plans and specifications each prepared and administered by a different architect and engineer.

Garfield Traub’s role representing the best interests of LAUSD as a mediator, facilitator and negotiator with the builder allowed for issues to be resolved equitably, timely and efficiently. Garfield Traub acted as a buffer between the owner and builder, and was always candid in advising both parties of its recommendation for the resolution of issues. Garfield Traub finalized all issues and not one item was in dispute in the form of a claim.

Challenges inevitably arise on every construction project. The ultimate measure of performance is the timing and manner in which problems are identified and corrected. Demonstrating great professionalism and teamwork, the Garfield Traub team rose to the occasion and met this test.

Garfield Traub’s experience and expertise ensured ultimate success of this highly visible and important project in LAUSD’s building program.

Sincerely,

Jim Cowell
Deputy, Chief Facilities Executive

Durham Performing Arts Center – Reference

Durham Performing Arts Center

Durham Performing Arts Center, Durham, NC

Assistant City Manager of Economic and Workforce Development
Alan DeLisle

October 22, 2007

To Whom It May Concern:

I serve as Assistant City Manager for Economic and Workforce Development for the City of Durham, and in that capacity have been responsible for the planning of the City’s new 2,800-seat Durham Performing Arts Center. The theater will accommodate Broadway performances, music, family shows, and other events. The theater “tops out” on October 30th with a ceremony marking the midpoint of construction, which is proceeding within budget and schedule toward a November 2008 Grand Opening.

Garfield Traub, and particularly its principals Greg Garfield and Tony Traub, were instrumental in the planning for the project, including financial and ownership structuring, facility programming, design, value-engineering, pricing, scheduling, helping the City to select the theater operator and negotiate the terms of the operating agreement, and to negotiate various other agreements with City contractors.

The City of Durham has benefited greatly from Garfield Traub’s leadership and expertise in this process. I have no doubt that they will continue to provide this exceptional level of service throughout the completion of the theater and turnover thereof to the City and the operator.

I highly recommend Garfield Traub Development to you for the development of your essential facilities. Should you have any questions regarding the above, I would be pleased to discuss with you. I can be reached at 919-560-4965 or by email at Alan.DeLisle@durhamnc.gov.

Sincerely,

Alan DeLisle
Assistant City Manager
Economic and Workforce Development

Lenwood A. Jackson, Sr. Justice Center – References

City Court of Atlanta

Lenwood A. Jackson, Sr. Justice Center

Judge for the City of Atlanta Lenwood A. Jackson

To Whom It May Concern:

I serve as Judge of the City Court of Atlanta, Georgia and Coordinator of Facility Development. I recently had the pleasure of working with Garfield Traub Development on the development of the new City Court of Atlanta, which had been a goal of the City for over five years. I was deeply impressed with Garfield Traub’s dedication and display of expertise that they and their team showed in helping the City accomplish its goal.

As the leader of the City’s development team, Garfield Traub directed the development with skill and professionalism, including the assembly and acquisition of the development site, which was held by five different private owners. Garfield Traub’s knowledge and leadership of “friendly condemnation” facilitated the timely and efficient control of the site by the City.

Garfield Traub also coordinated the efforts of the investment bankers, bond counsel and legal counsel in structuring the project financing, ensuring the best execution and lowest cost of occupancy for the City. The Court was delivered within schedule and substantially under budget in November 2003.

This was a very complicated transaction fraught with difficulties, including political challenges, all of which Garfield Traub and its team worked through successfully. The City of Atlanta is very pleased with the outcome. I have no hesitation in recommending Garfield Traub Development to you for the development of your essential facilities.

Respectfully,
Judge Lenwood A. Jackson
City Court of Atlanta

 

President of Jackson Securities W. Bruce Gow

May 10, 2011

To Whom it May Concern:

I am President of Jackson Securities, a full service investment bank that provides a broad spectrum of investment banking and brokerage services to institutional and retail clients throughout the United States. I had the pleasure of working with Ray Garfield and his firm Garfield Corporation, now Garfield Traub Development LLC in its role as Development Manager for Atlanta and its City of Atlanta Municipal Court, now known as the Lenwood A. Jackson, Sr. Justice Center.

At the time of Garfield Traub’s introduction to the City, the Judges were housed in an old and unsafe facility with little hope of moving to a new and secure court because of City priorities placing a new facility on a bond referendum 5 years in the future. Garfield Traub engaged Jackson Securities to help craft a creative financial solution that significantly shortened the time it would take to enable the safety and security of our Judges and the citizens of Atlanta. Together, we identified an existing and reliable source of City revenue separate and apart from the traditional tax revenues entering the General Fund. The City’s historical $25 million in annual Fines and Forfeiture revenue were used to secure an Annual Appropriation Lease, and allowed the City to transact the business of paying for the design and construction of the new Courthouse; thereby avoiding the wait, or indeed the risk of a referendum to approve the sale of General Obligation Bonds. In 2001, when the City engaged Garfield Traub as its Developer, to my knowledge there were very few if any private sector firms thinking in these creative terms, much less actually transacting what is today known as Public Private Partnerships.

Continuing our collaboration, Jackson Securities and our underwriter’s counsel worked with the City and their Bond Counsel in structuring an Agreement with the Georgia Municipal Association, Inc. to issue over $55 million in Installment Sale Program Certificates of Participation, which were rated AAA.

Very importantly, the project was completed ahead of schedule and below budget.

In my opinion and in the opinion of our firm, the leadership, creativity and integrity of the Garfield Traub organization was critical to the success of this facility, a facility that helped greatly improve an older part of downtown and that sets a standard in both design and safety for our City.

I highly recommend Garfield Traub to any community in need of essential public facilities and would work with them again whenever the opportunity arises.

Respectfully,

W. Bruce Gow

Overton Hotel and Conference Center References – Lubbock, TX

City of Lubbock City Manager Lee Ann Dumbauld Reference Letter

City of Lubbock LogoMay 6, 2011

To Whom It May Concern:

As City Manager of the City of Lubbock, I am writing to say how impressed I am with the leadership, professionalism and attention to detail shown by Garfield Traub Development LLC as part of the development team for the Overton Hotel and Conference Center. This project includes a 304 room hotel and a 47,400 square foot conference center.

Garfield Traub delivered a high quality product that has become a landmark for the City of Lubbock. I would highly recommend them to your city should you consider a project of this scope.

Best regards,

Lee Ann Dumbauld, City Manager

Mayor of Lubbock Texas Tom Martin

May 6, 2011

To Whom It May Concern:

As Mayor of the City of Lubbock, I have had the pleasure of dealing directly with Garfield Traub Development LLC as the developer of the Overton Hotel and Conference Center. This project includes a 304 room hotel and a 47,400 square foot conference center.

Garfield Traub Development’s professionalism in completing this project was very impressive and the result is a first class, state-of-the-art facility. I would highly recommend them to complete a project of similar scope in your city.

Best regards,

Tom Martin, Mayor of Lubbock, Texas

Assistant City Manager Development Services Rob Allison

November 18, 2009

To Whom It May Concern:

As Assistant City Manager for Development Services for the City of Lubbock and being involved with the Overton Hotel and Conference Center, I am writing to say how pleased I. am with Garfield Traub Development LLC. The City of Lubbock contracted with Garfield Traub Development LLC to perform development management services for the hotel and conference center project including fund raising, operational solutions, design and construction. This project has been a dream of the City for many years and we are extremely satisfied with the services of Garfield Traub Development LLC and the final product. The project broke ground on September 26, 2007 and includes a 304 room hotel and 47,400 square foot conference center as part of a large redevelopment project called Overton Park adjacent to Texas Tech University.

1 have been impressed with Garfield Traub Development’s leadership, professionalism, and their attention to detail. Their staff, including Steve Moffett, has taken great pride in providing outstanding service and commitment to the project.

The selection of Garfield Traub Development- LLC as part of the team has delivered our community a high quality product, and I would give them. my highest recommendation to complete any first-class facility for you. If the City of Lubbock has a future project of similar scope, we would not hesitate to use Garfield Traub Development.

Best Regards,

Rob Allison, Assistant City Manager Development Services

?

Top Factors in Choosing an Event Location – Garfield Traub

Part of excerpt taken from Jim Butler of the Global Hospitality Group® Hospitality Lawyers | Authors of www.HotelLawBlog.com

Founder of Garfield Traub Development provided a wealth of information as one of the “top experts in public-private financing for hotel developments” on a panel for JMBM’s Global Hospitality Group®. The panel was for hotel developers, governmental entities and educational institutions about the feasibility and economics of building a hotel using a variety of public and private financing.

To view Ray Garfield’s presentation, see the easy download link at the end of his summary.

Ray GarfieldRay Garfield
Principal
Garfield Traub Developments LLC
972-716-3838
rgarfield@garfieldtraub.com
Ray Garfield and his company, Garfield Traub Developments, specialize in turn-key development of hotels, conference centers and entertainment venues for municipalities, airports, college campuses and hospitals. These developments can bring hundreds of thousands of people into the communities in which they are located to spend money and generate sales tax, without burdening schools or other public resources.

Ray points out that the number one factor for group meeting planners in selecting a location for a conference is the number of suitable hotel rooms nearby the meeting facility. So, if a city is in the convention center business, it has to be in the hotel business in one form or another.

Ray noted that with loan underwriting much more conservative today than it has been in the past, there is a significant gap between the equity that private developers are willing to invest and the debt that private developers are able to raise to develop a new hotel. Public-private financing is often the only way to fill the gap – without it, a hotel development will very difficult to build in today’s financial environment.

Ray has developed some innovative ideas for piecing together a variety of sources of financing for his projects. For example, Garfield Traub recently completed a $67 million, 303 room, independent hotel in Lubbock, Texas across from Texas Tech University, using a combination of two-thirds private funds and one third public funds. In collaboration with the University’s Restaurant-Hotel-Institutional Management school at Texas Tech, Garfield Traub designed a classroom in the city’s conference facility, and raised $11 million in grants to the city to help with the financing for the facility. The city also sold $11.4 million in bonds for the project. The combination of grants and bonds helped to fill the gap between the total cost of the project and the private equity and first mortgage loan.

See below to view or download Ray’s presentation at Meet the Money® 2010, where he shared with some of the information he provides to cities considering hotel development.

Top Factors in Choosing an Event Location

 

JMBM’s Global Hospitality Group® Perspective


Jim Butler

Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,000 properties all over the world. For more information, please contact Jim Butler at jbutler@jmbm.com or 310.201.3526.

Jim Butler is a founding partner of JMBM and Chairman of its Global Hospitality Group®. Jim is one of the top hospitality attorneys in the world. GOOGLE “hotel lawyer” and you will see why.

JMBM’s troubled asset team has handled more than 1,000 receiverships and many complex insolvency issues. But Jim and his team are more than “just” great hotel lawyers. They are also hospitality consultants and business advisors. For example, they have developed some unique proprietary approaches to unlock value in underwater hotels that can benefit lenders, borrowers and investors. (GOOGLE “JMBM SAVE program”.)

Whether it is a troubled investment or new transaction, JMBM’s Global Hospitality Group® creates legal and business solutions for hotel owners and lenders. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.

  • Veteran Owned Business Directory, Get your free listing, now!