At a recent joint Bay Area and Sacramento Chapters California Receivers Forum, the need for hotel receivership services was one of the topics. The program titled “2012 Nor Cal Commercial Real Estate Forecast,” which was held at The City Club in San Francisco on February 29th, focused on the office, industrial, hotel and agriculture sectors…
The cost of hotel receivership services is often a critical issue when a lender, special servicer or their legal counsel is considering a court appointed hotel receiver and interim hotel management for a pending action. As part of the initial request, it is important for the party moving to appoint someone to understand the nature…
Now that hotel occupancies and average daily rates are on the rise, bank foreclosure alternatives such as a receivership may be another option. Of course, using the courts to agree to your appointing a receiver to potentially sell the hotel asset(s) during it may make sense if a number of factors look to support it…
When there are disputes between a managing member or other members of a LLC (Limited Liability Corporation), the appointment of a restaurant receiver is one solution. Unlike hotel receiverships, where often this action is more common and brought on by the senior lender prior to foreclosure and in order to preserve the assets and the…
Limited Hotel Receivership Overview Once a Court Appointed Receiver is assigned in a limited-purpose capacity to collect the hotel TOT, he or she will perform similar duties as in a full-purpose hotel receivership. This includes taking control of all of the bank accounts and performing an evaluation as to the economic feasibility of the property…
During economic recessions and related downturns in business and leisure travel, many cities and counties across the nation are generating lower tax incomes due to less overnight room sales tax or hotel transient occupancy taxes (called TOT) being collected at area lodging facilities. This is especially evident in popular destination hotels and resorts that produce…
Banks and lenders, who move to appoint a court appointed receiver prior to foreclosure, should add hotel security to the list of priorities as part of the transition. As we approach 9/11, the short term nature of hotel receiverships makes the property a target for unexpected situations given that employees may be more concerned about…
Banks, creditors and attorneys, who are considering foreclosure alternatives can learn more at the California Receivers Forum (CRF). Long considered the voice and reference source for state and federal receivership administration, procedures and the law, CRF has a dearth of information to help educate lenders and their professionals. As a board member and officer of…
The viability of using a restaurant receiver to resolve a dispute depends on many factors, most of which have not been studied at length. Those who lose the battle are rarely willing to contribute to the academic study. And, those who are able to do not really think much of academic studies. A restaurant, with any…
Recent reports of hotel defaults declining suggest that the need for hotel receivership services in California will drop as well. Compared to last year, there appears to be less default filings by hotels in the first quarter across the Golden State. However, coupled with this news are reports that CMBS loan delinquencies are rising as well. Just out…