Although a hotel appears to be similar to any other commercial real estate asset in reality it is a 24/7 service facility with many facets of operation. The service aspect, coupled with liability issues associated with human resource, physical neglect, as well as food and alcohol service make it absolutely necessary that a receiver with hotel experience be appointed.
The number claiming to be qualified as a receiver for hotels has increased dramatically - especially this year as many hotels have gone into bankruptcy. There are very few requirements for offering hotel receivership services (in most states). Many management companies and consultants are offering to do receivership work pro bono as they seek management contracts.
Hazards of choosing the wrong hotel receiver range far and wide.
Receivers who involve the lender in the decision making process can open a claim of lender liability. Receivers inexperienced in hotel operations could lose the hotel’s liquor or gaming license.
Why select Drew Dimond as the hotel receiver?
He knows how to remain neutral and keep the principal stakeholders informed on a timely basis. Drew has developed, owned, and managed hotels for over 30 years. His full-time consulting has exposed him to an array of assignments in the hospitality industry. He has dealt with attorneys, lenders, brands, management companies, and owners in a variety of advisory services. Unlike many consultants he has hands-on experience in virtually all hotel segments and functionalities. He understands the critical issues facing the courts, attorneys, owners, and lenders.
When is a Hotel Receivership an Appropriate Option?
It depends on whether you are the lender or borrower. It could be that the causes of the hotel’s problems are related to today’s economic situation or it could simply be that the root cause is related to management’s ineptness. It could well be that a receivership may not be in order in the first scenario. However, in the second scenario a receiver could eliminate the borrower’s control and make management and other necessary changes to enhance the profitability and value of the hotel asset.
