March 10, 2021

Over the past several years, Korean institutions have placed record levels of debt, mostly mezzanine, into the hotel sector of the United States. While the sector has done its best to weather the COVID-19 storm, the dark clouds of distress and default have arrived. It is more important than ever for Korean investors to understand the state of US debt markets and legal options for mitigating risk. The leading global hospitality teams of CBRE and Dentons held a joint webinar to discuss the current crisis facing investors in US hotel debt.

The seminar covered the following topics regarding the US lodging:

  • Fundamentals and forecast
  • Loan sales market update
  • Transaction market update
  • Debt capital markets update
  • What you need to know about stepping into an ownership position
  • Ramifications of being a senior or mezzanine lender for US hotel debt
  • Restructuring implications for senior and mezzanine debt holders
 
 

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Contacts

Sean Choi

Sean Choi

Sean Choi has more than 21 years of industry experience through overall property development, construction, real estate consulting, finance and investment. His responsibilities range from property sales and acquisitions to valuation as well as management of domestic and foreign investors. He is also responsible for transaction and leasing of logistics assets. Furthermore, he supervises outbound investment advisory between global markets and institutional Korean investors. Since joining CBRE, Sean has recorded USD 3 BIL. In 2019 and USD 4.3 BIL in 2020 in the domestic transaction market.
Executive Director, CBRE Seoul
+82 2 2170 6160
[email protected]
Sean Choi has more than 21 years of industry experience through overall property development, construction, real estate consulting, finance and investment. His responsibilities range from property sales and acquisitions to valuation as well as management of domestic and foreign investors. He is also responsible for transaction and leasing of logistics assets. Furthermore, he supervises outbound investment advisory between global markets and institutional Korean investors. Since joining CBRE, Sean has recorded USD 3 BIL. In 2019 and USD 4.3 BIL in 2020 in the domestic transaction market.
Ghil-Won Jo

Ghil-Won Jo

Ghil-Won Jo is a Senior Managing Attorney at Dentons Lee. He advises clients on a variety of issues related to merger and acquisitions, corporate restructuring, real estate project financing, ship project financing, foreign bond issuance, non-performing loan, asset-backed securities, mortgage-backed securities, general corporate, and international trade matters. Mr. Jo has extensive experience in advising clients on matters involving the brainstorming of a deal structures, legal due diligences, coordination of deal procedures, communications with competent courts of corporate restructuring, negotiations with counterparts, foreign exchange transactions and foreign direct investments.
Senior Managing Attorney, Dentons Lee, Seoul
+82 2 2262 6068
[email protected]
Ghil-Won Jo is a Senior Managing Attorney at Dentons Lee. He advises clients on a variety of issues related to merger and acquisitions, corporate restructuring, real estate project financing, ship project financing, foreign bond issuance, non-performing loan, asset-backed securities, mortgage-backed securities, general corporate, and international trade matters. Mr. Jo has extensive experience in advising clients on matters involving the brainstorming of a deal structures, legal due diligences, coordination of deal procedures, communications with competent courts of corporate restructuring, negotiations with counterparts, foreign exchange transactions and foreign direct investments.
Tim Trinka

Tim Trinka

Tim Trinka is a Senior Attorney and head of the Real Estate practice of our Firm. He has worked as a foreign lawyer in Seoul for over 30 years. Throughout his career, Tim has been engaged in a wide variety of corporate, commercial and financial transactions in Asia, Europe and the United States. Tim’s practice focuses on the construction, financing, development, acquisition, disposition and leasing of real property in Korea and, in recent years, the acquisition of real property in Europe and the United States on behalf of Korean institutional investors. Tim also has substantial experience in joint ventures and distribution arrangements including franchising and technology licensing. Over the past 15 years Tim has developed an additional focus on the business of golf in the Asia-Pacific region. He regularly represents large area planners, designers, product suppliers, operations management companies, developers and financiers of golf course projects. He is also experienced in championship management as he represented the main sponsor of the 2015 Presidents Cup held in Korea.
Senior Attorney and Head of Real Estate, Dentons Lee, Seoul
+82 2 2262 6034
[email protected]
Tim Trinka is a Senior Attorney and head of the Real Estate practice of our Firm. He has worked as a foreign lawyer in Seoul for over 30 years. Throughout his career, Tim has been engaged in a wide variety of corporate, commercial and financial transactions in Asia, Europe and the United States. Tim’s practice focuses on the construction, financing, development, acquisition, disposition and leasing of real property in Korea and, in recent years, the acquisition of real property in Europe and the United States on behalf of Korean institutional investors. Tim also has substantial experience in joint ventures and distribution arrangements including franchising and technology licensing. Over the past 15 years Tim has developed an additional focus on the business of golf in the Asia-Pacific region. He regularly represents large area planners, designers, product suppliers, operations management companies, developers and financiers of golf course projects. He is also experienced in championship management as he represented the main sponsor of the 2015 Presidents Cup held in Korea.
Tom Jeanes

Tom Jeanes

Tom Jeanes has more than 13 years real estate experience covering retail and office agency, valuation, asset management and investment. His prior experience includes roles in London (Montagu Evans), Hong Kong (Swire Properties) and Seoul (CBRE). Tom is responsible for outbound Korean investment. He provides the link between global markets and institutional Korean investors looking to buy and sell commercial real estate abroad.
Associate Director, CBRE Seoul
+82 2 2170 5842
[email protected]
Tom Jeanes has more than 13 years real estate experience covering retail and office agency, valuation, asset management and investment. His prior experience includes roles in London (Montagu Evans), Hong Kong (Swire Properties) and Seoul (CBRE). Tom is responsible for outbound Korean investment. He provides the link between global markets and institutional Korean investors looking to buy and sell commercial real estate abroad.
Bram Gallagher

Bram Gallagher

Bram Gallagher is the Senior Economist for CBRE Hotels Research. He maintains performance forecasting models for 65 major U.S. hotel markets, creates thought leadership pieces for CBRE and the Hotel Industry, and invents tools for hotel stakeholders. His background in statistical modeling and understanding of how markets operate have allowed him to reveal powerful, new insight into the future of the lodging industry.
Senior Economist, CBRE Hotels’ Americas Research
+1 404 812 5189
[email protected]
Bram Gallagher is the Senior Economist for CBRE Hotels Research. He maintains performance forecasting models for 65 major U.S. hotel markets, creates thought leadership pieces for CBRE and the Hotel Industry, and invents tools for hotel stakeholders. His background in statistical modeling and understanding of how markets operate have allowed him to reveal powerful, new insight into the future of the lodging industry.
Mark K. Owens

Mark K. Owens

Mark K. Owens is an Executive Vice President and the Co-Head of Hospitality Capital Markets for CBRE Hotels. He is responsible for the development of the CBRE Hotels Debt & Structured Finance practice and oversees the origination and placement of hospitality related transactions, including debt, equity, joint venture equity and transaction sales. Since joining CBRE Mark’s been an integral part in building the team’s production, which exceeded $1.6 billion in 2018. His recent iconic transactions include the $100+ million W Washington DC, the $250+ million recapitalization of the Marriott Aruba, and the nearly $300 million refinancing of a sixteen asset Canadian portfolio.
Executive Vice President and Co-Head of Hospitality Capital Markets, CBRE Hotels
+1 212 984 8112
[email protected]
Mark K. Owens is an Executive Vice President and the Co-Head of Hospitality Capital Markets for CBRE Hotels. He is responsible for the development of the CBRE Hotels Debt & Structured Finance practice and oversees the origination and placement of hospitality related transactions, including debt, equity, joint venture equity and transaction sales. Since joining CBRE Mark’s been an integral part in building the team’s production, which exceeded $1.6 billion in 2018. His recent iconic transactions include the $100+ million W Washington DC, the $250+ million recapitalization of the Marriott Aruba, and the nearly $300 million refinancing of a sixteen asset Canadian portfolio.
Robert Webster

Robert Webster

Bob Webster is the President of CBRE Hotels' Institutional Group based in Atlanta. He leads the Institutional Group specializing in full-service investment sales in the United States. In all, Bob has sold more than 165 hotels in the last ten years. He has been recognized by Real Estate Forum magazine as a “Superstar Investment Sales Broker” ranking him the third most productive investment broker in the country. Bob is the recipient of the Jack A. Shaffer Financial Advisor of the Year Award given to the top hotel investment sales professional in the lodging industry. He is the only person to receive the award twice. Bob’s career during the last 40 years has spanned a broad range of disciplines within the hotel industry. Before joining CBRE, Bob was Senior Managing Director at JLL for nine years. Prior to that he was Managing Director at Hodges Ward Elliott for 23 years. Bob was also Director of Real Estate for the Ritz-Carlton Hotel Company, a senior hotel real estate consultant with Laventhol & Horwath in Boston and started his career as an operations analyst at the Plaza Hotel in New York City. Bob has 35 years of experience specific to hotel real estate.
Vice Chairman & President, CBRE Hotels Institutional Group, CBRE Hotels
+1 404 812 5229
[email protected]
Bob Webster is the President of CBRE Hotels' Institutional Group based in Atlanta. He leads the Institutional Group specializing in full-service investment sales in the United States. In all, Bob has sold more than 165 hotels in the last ten years. He has been recognized by Real Estate Forum magazine as a “Superstar Investment Sales Broker” ranking him the third most productive investment broker in the country. Bob is the recipient of the Jack A. Shaffer Financial Advisor of the Year Award given to the top hotel investment sales professional in the lodging industry. He is the only person to receive the award twice. Bob’s career during the last 40 years has spanned a broad range of disciplines within the hotel industry. Before joining CBRE, Bob was Senior Managing Director at JLL for nine years. Prior to that he was Managing Director at Hodges Ward Elliott for 23 years. Bob was also Director of Real Estate for the Ritz-Carlton Hotel Company, a senior hotel real estate consultant with Laventhol & Horwath in Boston and started his career as an operations analyst at the Plaza Hotel in New York City. Bob has 35 years of experience specific to hotel real estate.
Patrick Arangio

Patrick Arangio

Patrick Arangio is the Vice Chairman of the National Loan & Portfolio Sale Advisory practice at CBRE. For the past twenty (20) years, Mr. Arangio has advised and placed over $32 Billion in commercial mortgage loans and real estate portfolios in the secondary market. As the lead advisor and transaction manager on over 250 large sale assignments, Mr. Arangio has curated sale and marketing strategies for a diverse group of institutional lender, servicer, and corporate user clients. He specializes in sales of performing and non-performing loans and REO assets secured by all product types located throughout North America. Since 2010, he has integrated large-scale strategic real estate portfolio sales as part of the practice. Mr. Arangio oversees all aspects of the sale process including development of prospective sales strategies, capital markets implementation, institutional contact liaison, negotiation and closing with buyers/sellers, portfolio structuring and financing on behalf of sellers with all related ancillary advisory functions.
Vice Chairman, Loan & Portfolio Sales, CBRE
+1 212 895 0926
[email protected]
Patrick Arangio is the Vice Chairman of the National Loan & Portfolio Sale Advisory practice at CBRE. For the past twenty (20) years, Mr. Arangio has advised and placed over $32 Billion in commercial mortgage loans and real estate portfolios in the secondary market. As the lead advisor and transaction manager on over 250 large sale assignments, Mr. Arangio has curated sale and marketing strategies for a diverse group of institutional lender, servicer, and corporate user clients. He specializes in sales of performing and non-performing loans and REO assets secured by all product types located throughout North America. Since 2010, he has integrated large-scale strategic real estate portfolio sales as part of the practice. Mr. Arangio oversees all aspects of the sale process including development of prospective sales strategies, capital markets implementation, institutional contact liaison, negotiation and closing with buyers/sellers, portfolio structuring and financing on behalf of sellers with all related ancillary advisory functions.
Rick Ross

Rick Ross

Rick Ross is the chair of Dentons’ global Hotels and Leisure practice and is widely regarded as a global hospitality industry leader. Described as "iconic" and "one of the deans of the industry” by Chambers USA, Rick has over four decades of experience advising owners, operators, investors and lenders on the acquisition, development, financing and operation of hotels, resorts and mixed-use projects, including hotels with serviced residential condominiums, condo hotels, serviced apartments, convention centers, spas, wellness facilities and golf courses. He has advised on projects throughout North, South and Central America and the Caribbean; Europe and the Middle East; Asia; and Australia and the Pacific Islands. Rick’s clients include some of the country’s largest private equity firms, public companies, private companies, sovereign wealth funds, ultra-high-net-worth individuals and their family offices. After a transaction is complete, Rick often continues to advise his clients going forward on their future endeavors. Most of his clients have been with him for 5-20 years, and as a result, he has counseled them through several business cycles. As the hotel sector and global markets more broadly continue to ebb and flow, his knowledge and experience continue to help clients navigate both short-term issues and strategic long-term challenges. Clients describe him as a "go-to counselor for advice in tricky situations."
Partner, Global Chair, Hotels and Leisure and Global Co-Chair, Family Office and High Net Worth, Phoenix, Dentons
+1 602 508 3901
[email protected]
Rick Ross is the chair of Dentons’ global Hotels and Leisure practice and is widely regarded as a global hospitality industry leader. Described as "iconic" and "one of the deans of the industry” by Chambers USA, Rick has over four decades of experience advising owners, operators, investors and lenders on the acquisition, development, financing and operation of hotels, resorts and mixed-use projects, including hotels with serviced residential condominiums, condo hotels, serviced apartments, convention centers, spas, wellness facilities and golf courses. He has advised on projects throughout North, South and Central America and the Caribbean; Europe and the Middle East; Asia; and Australia and the Pacific Islands. Rick’s clients include some of the country’s largest private equity firms, public companies, private companies, sovereign wealth funds, ultra-high-net-worth individuals and their family offices. After a transaction is complete, Rick often continues to advise his clients going forward on their future endeavors. Most of his clients have been with him for 5-20 years, and as a result, he has counseled them through several business cycles. As the hotel sector and global markets more broadly continue to ebb and flow, his knowledge and experience continue to help clients navigate both short-term issues and strategic long-term challenges. Clients describe him as a "go-to counselor for advice in tricky situations."
Christopher Milenkevich

Christopher Milenkevich

Christopher is a member of Dentons' Real Estate practice group. Chris has almost fifteen years of experience in commercial real estate law, focusing on lender and borrower-side finance, including commercial mortgage-backed securities (CMBS) and balance-sheet loans, mezzanine loans, note purchases, repurchase facilities, and preferred equity. His practice covers diverse real property asset classes located around the globe, and he has extensive experience with hotel and leisure properties. He also represents real estate investors in secondary market transactionsthrough whole loan sales, purchases, syndications, participations and securitizations. In addition, Chris strategizes and executes workouts and exercises of remedies with respect to distressed real estate loans and loan interests. He also provides advice on real estate matters in litigation and bankruptcy cases.
Partner, Real Estate Finance, Dentons
+1 212 398 7618
[email protected]dentons.com
Christopher is a member of Dentons' Real Estate practice group. Chris has almost fifteen years of experience in commercial real estate law, focusing on lender and borrower-side finance, including commercial mortgage-backed securities (CMBS) and balance-sheet loans, mezzanine loans, note purchases, repurchase facilities, and preferred equity. His practice covers diverse real property asset classes located around the globe, and he has extensive experience with hotel and leisure properties. He also represents real estate investors in secondary market transactionsthrough whole loan sales, purchases, syndications, participations and securitizations. In addition, Chris strategizes and executes workouts and exercises of remedies with respect to distressed real estate loans and loan interests. He also provides advice on real estate matters in litigation and bankruptcy cases.
Brian E. Greer

Brian E. Greer

Brian E. Greer is a partner in Dentons’ Restructuring, Insolvency and Bankruptcy group, with extensive experience in complex in- and out-of-court cross-border and domestic restructuring matters. Brian has been recognized by IFLR 1000 as a restructuring and insolvency Highly Regarded attorney and by the Legal 500 US as a leading restructuring attorney. In addition, he received Global Finance Deal of the Year from The American Lawyer for his representation of Standard Chartered Bank in Arcapita Bank’s Chapter 11 and Cayman restructuring, M&A Advisors’ Deal of the Year (US$100 million to $500 million) for the restructuring of Egalet Corporation and M&A Advisors’ Industrials Deal of the Year (over US$100 million) for the restructuring of Modular Space Corporation. Brian has represented hedge funds, private equity funds, asset managers, direct lenders, insurers, securitization servicers, debt issuers, directors, officers and equity sponsors through complex turnarounds, workouts, restructurings, wind-downs, bankruptcies, liquidations, assignments for the benefit of creditors, foreclosures and other stressed or distressed situations. He also regularly helps clients capitalize on opportunities as purchasers, sellers and lenders in distressed M&A transactions. Brian’s award-winning practice spans a multitude of industries, including hospitality, restaurants, commercial real estate, oil and gas, energy, REITs, manufacturing, pharmaceuticals, IT consulting, life sciences, healthcare, movie theaters, telecom, satellite, chemicals, automotive, financial services and retail.
Partner, Restructuring, Insolvency and Bankruptcy, Dentons
+1 212 768 6819
[email protected]
Brian E. Greer is a partner in Dentons’ Restructuring, Insolvency and Bankruptcy group, with extensive experience in complex in- and out-of-court cross-border and domestic restructuring matters. Brian has been recognized by IFLR 1000 as a restructuring and insolvency Highly Regarded attorney and by the Legal 500 US as a leading restructuring attorney. In addition, he received Global Finance Deal of the Year from The American Lawyer for his representation of Standard Chartered Bank in Arcapita Bank’s Chapter 11 and Cayman restructuring, M&A Advisors’ Deal of the Year (US$100 million to $500 million) for the restructuring of Egalet Corporation and M&A Advisors’ Industrials Deal of the Year (over US$100 million) for the restructuring of Modular Space Corporation. Brian has represented hedge funds, private equity funds, asset managers, direct lenders, insurers, securitization servicers, debt issuers, directors, officers and equity sponsors through complex turnarounds, workouts, restructurings, wind-downs, bankruptcies, liquidations, assignments for the benefit of creditors, foreclosures and other stressed or distressed situations. He also regularly helps clients capitalize on opportunities as purchasers, sellers and lenders in distressed M&A transactions. Brian’s award-winning practice spans a multitude of industries, including hospitality, restaurants, commercial real estate, oil and gas, energy, REITs, manufacturing, pharmaceuticals, IT consulting, life sciences, healthcare, movie theaters, telecom, satellite, chemicals, automotive, financial services and retail.
Kevin Mallory

Kevin Mallory

Mr. Mallory, a senior member of CBRE’s Capital Markets leadership team is responsible for strategic and operational oversite of CBRE Hotels, a fully integrated global services platform focused on the hotel and leisure sectors. Business lines include: investment property sales, debt and structured finance, valuation, advisory, investment management, loan sales, investment banking and sector research. As a senior industry executive with over thirty years of public and private company experience in hospitality real estate investment, development, investment management, and finance; Mr. Mallory delivers significant global and sector expertise for the benefit of CBRE clients.
Global Head, Senior Managing Director, CBRE Hotels
+1 312 925 3954
[email protected]
Mr. Mallory, a senior member of CBRE’s Capital Markets leadership team is responsible for strategic and operational oversite of CBRE Hotels, a fully integrated global services platform focused on the hotel and leisure sectors. Business lines include: investment property sales, debt and structured finance, valuation, advisory, investment management, loan sales, investment banking and sector research. As a senior industry executive with over thirty years of public and private company experience in hospitality real estate investment, development, investment management, and finance; Mr. Mallory delivers significant global and sector expertise for the benefit of CBRE clients.

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