Adam's Mark Puts Hotels On The Block

The severe downturn in the hotel business during the past two years has claimed another casualty. According to Jim Patrick, CFO of hotel brokerage firm Hodges Ward Elliott, St. Louis-based Adam's Mark Hotels & Resorts is seeking a buyer for almost half of its 22-property inventory.

For corporate travel buyers, any industry consolidation is a concern because it potentially limits the number of competitors in a market. In Adam's Mark's case, this means such markets as Denver, Indianapolis, Orlando and Philadelphia that frequently are used by business travelers. On the upside, new ownership of hotels frequently means buyers can negotiate better deals, as owners are eager to drive trial usage.

Adam's Mark, an upscale chain, recently sold other of its hotels in Memphis and Houston. Earlier this year, vice president of sales Knud Svendsen told Business Travel News that the chain had adjusted its strategy to go after more group bookings as a way of supplementing its lagging transient business.