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 of the hotel, coupled with liability issues associated with human resources, physical neglect, as well as food and alcohol service make it absolutely necessary that a receiver with hotel experience be appointed.
The number of firms claiming to be qualified as a hotel receiver for hotels has increased dramatically over the last few years, especially this year as many hotels have gone into bankruptcy. Realistically, there are very few qualifying requirements for offering Hotel Receivership Services (in most states) which opens the opportunity for any consulting firm with little or no experience in dealing with a troubled asset claiming to be the best selection for your hotel’s issues. As you probably already know, a distressed hotel property typically does not gain revenue without specific qualified intervention. That is why Hotel Receivership may be your best option to preserve your asset’s value.
RK Consulting Services, Inc.’s approach to Hotel Receivership includes disciplined research, analysis, reporting, and controls that begin with the analysis of the hotel operations to maximize the asset’s profitability This process includes a review of all operational, physical, market, financial, marketing, and investment criteria of an individual hotel.
Our Receivership Services Include:
- Full Inspection and Assessment of property value
- Develop and recommend an individualized plan of recovery
- Interview and select on-site managers qualified and capable of implementing our designed strategic plan
- On-going inspections of property and operational documents
- Create or maintain marketing strategies.
- Work with Brokerages to acquire a Buyer and help solicit offers
- Negotiate and consummate contracts
- Communicate with appropriate parties regarding implementation of plans, benchmarks and monthly accounting
Our hotel receivership team begins by conducting a comprehensive study of the competitive market and operating environment, including the hotel’s physical condition, capital expenditure history and capital expenditure plan. Financial performance and labor productivity are reviewed and benchmarked. Sales and marketing strategies are evaluated and measured for ROI. Legal documents are meticulously reviewed with respect to compliance with operating and business terms. Members of the on-site and regional management team and franchise are extensively interviewed. Our goal: to maximize cash flow and protect the economic value and physical condition of the investment.
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