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DonFromSLC

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Reply with quote  #46 
Here ya go captiivated, a pretty savy blogger's interpretation of Blackstone's manipulation of the market.  Sounds pretty positive from an investment perspective to me!

http://seekingalpha.com/article/165990-blackstone-successfully-plays-both-sides-of-the-market?source=yahoo
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whk3rd

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Reply with quote  #47 
Another interesting Blackstone/Hilton update. The WSJ notes part of the problem in Blackstone trying to refinance is that the Federal Reserve owns $4 Billion in debt which it assumed when Bear Sterns was sold to J.P.Morgan.



http://www.bloomberg.com/apps/news?pid=20602092&sid=arqQ2RcIUDa8
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captiivated

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Reply with quote  #48 
The attached is part of the growing problem for the Hotel and Airline industries.  When I was the "Big Cheese" I would insist every Manager meet with every client at least four times a year.  Now, with the new software, I would request they visit on line every month and press the flesh only once a year.  That savings would have increased my profitability by more than 10% points and more importantly improved client relations.

The point is that this on line meeting thing is going to be a real problem for the Hotel Industry and Hilton.  My thought.

https://www1.gotomeeting.com/pre/corp/reliability.tmpl
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captiivated

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Reply with quote  #49 

Blackstone/LXR is planning eight IPO'S near term, Hilton or SSIR may be one of them. Don't know who is on the chopping block.  Stay tuned. 

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reebop

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Reply with quote  #50 
You're right on Captivated.  We service industrial customers in brewing, food and paper industries.  We now problem solve more through email and attachments than we do in person and our customers are happier.

Our frequency of out of state travel to corporate customers has decreased by close to 70% and with better service results.  Obviously technology has had a major impact, but there some other things at work as well.  As companies downsize, their remaining staff has less time for "vendor" meetings.  I used to fly across the country literally to schmooze and have lunch with someone.  My customers no longer have the time for that (thank you!).  In addition the younger generation (and compared to me most are) hasn't been brought up in the "squeeze the flesh" culture.  What they want is real time information and support that saves them work time.  Then there's the Wal-Marting of business where sale price is the true determining factor.  All the value added fluff you've provided is removed and the extras required by the customer are dictated by the customer.  Wal-Mart won't see salesmen and that attitude is spreading.  Their attitude is give us the best price and here's the level of quality we demand for that product at that given price level, and here's what you need to provide.  Beyond that we really don't want to see you.  Beyond providing product and meeting our tangible needs, you're a distraction.  It's a tough sales environment, but it's well defined.

All of this is having a huge impact on the travel industry.

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captiivated

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Reply with quote  #51 
reebop:

I'm glad I retired. Your WalMart experience is way beyond my understanding and capability.

My most effective client relations style was to meet with my contact usually the CFO over dinner so that he had no surprises when I met with his Board the following morning.  These were all Fortune 500 Companies.  I managed the Company's pension portfolio.

The real secret though was to always invite the CFO's wife to join us for that dinner (they almost always did) at the absolute best restaurant in town. I think it also helped to know the names and ages of all the children.  Never lost a client in 35 years of the investment management business. My investment performance was usually above average but not always.

If I underperformed for the quarter I would start my presentation to the Directors with "I come with out honor" and if I outperformed I would  be very modest about it.  I think that helped.




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captiivated

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Reply with quote  #52 
This does not smell good.

Blackstone is trying to restructure it's $20 billion debt to re- finance the Hilton acquisition. Hilton is bleeding...less travel and less business entertainment. Moreover, they bought at the peak. Hilton was Blackstone's largest investment and if they have to dump it that will not be good news for the SSIR. For details read today's WSJ...front page B-section.

http://online.wsj.com/article/SB10001424052748704511304575075890907113472.html?mod=WSJ_hpp_LEFTWhatsNewsCollection" target=_blank>http://online.wsj.com/article/SB10001424052748704511304575075890907113472.html?mod=WSJ_
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captiivated

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Reply with quote  #53 
Not good news and a little scary for us at SSIR.

http://online.wsj.com/article/SB10001424052748704511304575075890907113472.html
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suziq45

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Reply with quote  #54 
That's disappointing and the timing could not be worse with the oil spill looming out there somewhere. SSIR looks the best ever and the place was sold out Memorial Day weekend. 

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captiivated

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Reply with quote  #55 
The WSJ reports that Blackstone's worst timed investment, Hilton is beginning to pay off.. That is good news but the problem moving forward is that continuing improvement and a recovery of the IPO market they may sell out. Stay Tuned!

They will want to get even and get out even if it means selling to Motel Six. Hope Four Seasons or Ritz Carlton will be interested..


http://online.wsj.com/article/SB10001424052748704124504576118392363017096.html?mod=ITP_moneyandinvesting_0
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captiivated

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Reply with quote  #56 
Blackstone is doing better.

http://www.blackstone.com/cps/rde/xchg/bxcom/hs/news_pressrelease_6704.htm
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captiivated

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Reply with quote  #57 

BREAKING NEWS.

Blackstone/LXR is planning to sell Hilton Hotels later this year. My guess is that The SSIR will be sold at the same time.

Blackstone preps La Quinta hotels sale • 12:26 PM

 

  • Private equity continues to harvest gains, with Blackstone (BX) prepping a sale (either privately or through an IPO) of its La Quinta hotel chain, reports the WSJ. Blackstone values the business at about $4.5B, including debt. It bought the chain in 2006 for $2.3B and has since invested hundreds of millions.
  • The move follows Blackstone's July filing for an IPO of the Extended Stay America hotel chain.
  • A La Quinta sale would be a precursor to the main event later this year - an IPO for Hilton which Blackstone acquired in 2007 for over $18B, plus more than $7B in debt.
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beachlvr

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Reply with quote  #58 
what will that mean for SSIR?

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captiivated

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Reply with quote  #59 
My guess is that selling Hilton is a very big deal and there are few if any institutions that will want to raise the billions required to buy it and assume the debt load.  Thus an IPO seems the logical alternative for Blackstone/LXR to realize the best price.  If they do that they will probably want to sell the Sanibel-Captiva properties separately and as a package.  Prospective buyers could range from a REIT, another Private Equity or hedge fund manager or a smaller hotel operator/manager.  The latter could range from a marginal operator intending to bleed the Resort for its free cash flow or a first class manager such as Four Seasons or Ritz Carlton to expand their presence in SW Florida and grow the business.  The former would be bad news for the Resort and the TS Associations while the latter would be a dream outcome.  The only problem with the latter is that the yearly Association fees would have to significantly increase. The greatly improved amenities, services, and maybe daily housekeeping should more than compensate.

One thing for sure, not everyone will be pleased with the changes no matter the outcome.

In my humble opinion, LXR did a very good job of turning the resort around.  HGVC ,however, I grade a D- for it's roll as the management operator of our TS Associations. 
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captiivated

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Reply with quote  #60 

Blackstone hires banks for Hilton IPO • 4:39 AM

  • Blackstone (BX) has reportedly hired a number of banks to lead an IPO of Hilton Worldwide, which the private-equity firm took private in 2007 in a $26.7B leverage buyout, one of the largest before the financial crisis. The deal included $7B in assumed debt.
  • The flotation is expected to take place in H1 next year.
  • The banks involved - which are so far Deutsche Bank (DB), Goldman Sachs (GS), Bank of America (BAC) and Morgan Stanley (MS) - are expected to help Hilton refinance $13B in debt.
  • The speculation comes as a rebound in demand for hotel rooms and not enough supply has led to a boom in the hotel sector.
  • Hilton's pro forma EBITDA rose 17% in H1; 2013 EBITDA is forecast to be 58% higher than in 2009.
  • The speculation follows reports yesterday that Blackstone is looking to exit La Quinta Inns & Suites, a budget hotel chain.
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