In today’s commercial real estate news, Trump Hotels plan expansion amid ethics accusations, the Blackstone REIT has made their first purchase, and a guide to investing wisely.
Eric Danziger, the Chief Executive Officer of Trump Hotels, expressed ambitious plans to expand the brand across major US metropolitan areas in the coming years. The announcement has raised a number of ethics expert’s eyebrows. “The fact that the hotel chain that bears his name is seeking to expand within the United States raises questions of both law and ethics,” said Wendy Patrick, who teaches business ethics at San Diego State University.
Blackstone REIT, which formed last September, recently acquired their first property, Hyatt Place UC Davis. The building is the only hotel on the campus of the University of California, Davis. Blackstone purchased the hotel for $32.2 million.
A helpful reminder on the depth investors should go to before investing. “..While the cap rate is the most common metric used to evaluate a commercial real estate investment, it is like the title of a book. You will need to read the entire book (or components of the acquisition) to understand,” writes Tim Ruffin. You can read What Troy Muljat has to say about property valuation here.