Effectively Managing Defaulted or Foreclosed Hotel Assets

Effectively Managing Defaulted or Foreclosed Hotel Assets

Thirty years of experience in owning and operating hotels, ranging from limited to full service, enables Charlestowne Hotels to act as a receiver for properties that have transitioned from the borrower’s to the lender’s control. No matter whether there is a single, senior debt-holder or CMBS financing, the same expertise that serves the long term interests of each client is equally effective for the temporary operation of a defaulted or foreclosed hotel asset.

Minimizing Liability + Financial Losses

The ability to apply the same resources to short-term receiverships, as it does to longer-term engagements, allows Charlestowne’s operations team to fully assess the condition of the asset fairly quickly. This enables the hotel’s lender or asset manager to make informed decisions under certain time restraints.

Once a commitment is made to engage Charlestowne as the operating receiver, cash handling, accounting practices, loss control, inventory control, purchasing practices, labor costs, and care of the facility, are rapidly implemented – all with an eye toward minimizing liability and financial losses.

Increasing Revenues to Attract Hotel Acquirers

To increase revenues and attract potential buyers, Charlestowne Hotels will provide an estimate that outlines where lenders should invest to preserve the asset and prevent further losses. Upon authorization by the lender, the hotel will participate in the company’s robust revenue optimization program to increase revenues that complement improved operational controls and attract potential hotel acquirers.

receivership - hotel facade
receivership - vacancy sign

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