REAL ESTATE : Lenders, Brokers Unite to Check Out Ways to Boost Slow Hotel, Motel Sales

You know selling homes and office buildings is tough these days, so imagine how difficult it is to move a hotel. To improve their chances, about 45 lenders and brokers formed the California Hotel Brokers Assn.

“The group is designed to bring together investment bankers and brokers who are in the business of selling hotel and motel properties,” said Donald W. Wise, a vice president with CB Commercial Real Estate Group’s lodging and hospitality properties group in Anaheim.

Wise, who formed the group five months ago, said the association includes brokers representing prospective buyers from China, Hong Kong, Japan, Malaysia and Indonesia as well as domestic purchasers.

“Many hotel buyers are more comfortable with a representative that speaks their language,” said Wise. “We have a group of 45 different people--Chinese, Indian, Japanese brokers. It’s an interesting melting pot.”

Wise said the group will hold networking meetings in several Southern California hotels, so brokers feel comfortable calling each other on the phone to discuss deals.

“It’s not much fun doing business right now, obviously,” said Wise. “In California, hotel transaction prices have been low, but the amount of transactions has been robust this year.”

Wise said that sales for hotels costing more than $10 million are down about 25% in the first half of this year compared with the same period of 1992. For smaller hotel properties, those selling for $2 million to $5 million, the number of transactions in California is up 10% to 15%, he said.