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Property Improvement Plan

Property Improvement Plan

A property improvement plan (PIP) is required to bring a hotel in compliance with brand standards. According to HVS, an effective PIP should help owners gain market share, increase guest satisfaction, drive revenue performance, and enhance profitability. Elements like lighting, ...

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New Market Tax Credits

New Market Tax Credits

Congress established the New Markets Tax Credit Program in 2000 to spur economic growth in low-income communities. The program is overseen by the U.S. Department of the Treasury and the credits are administered by the Community Development Financial Institutions (CDFI) ...

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Private Equity

Private Equity

Private-equity firms act as an investment vehicles for institutions and wealthy individuals looking to gain an ownership stake in a range of different properties and companies. They commonly create private-equity acquisition funds and treat them like private companies with investors ...

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Area of Protection

Area of Protection

Area of protection (AOP) is a negotiated geographic area of exclusivity that a new franchisee sets up with a franchisor that blocks new, competing units from being placed nearby without the franchisee’s approval. AOP agreements are critical when opening a ...

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Mezzanine Debt

Mezzanine Debt

Mezzanine loans are back in vogue with hotel investors and developers turning to this financing tool for their latest acquisitions, recapitalizations, and leveraged buyouts. “Senior lenders are getting more aggressive,” says Geoffrey Davis, president and senior principal of HREC Investment ...

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