The need for hotel receivership services prior to or in lieu of foreclosure does not appear to be on the minds and actions supported by lenders surveyed about their non-performing lodging loans and hotels currently in default. In fact, over 70% of these distressed hotels are in some type of workout. Here is an excerpt by The International Lodging Finance Council on its released findings of its 6th Annual Survey of Lodging Finance and reported in HotelNewsNow.com: “Asked what they are doing with their bad loans (there is an overlap in the responses)… 71% restructuring and holding to maturity 40% selling the paper 26% foreclosing and holding onto REO 23% foreclosing and selling today.” There are also discussions on the economy and financing new loans. Read more here if you are an attorney, bank or lender and are considering hotel receivership services. In a separate finding from The Hotel Industry Leading indicator (HIL), the likelihood of a recession grew in August. This may suggest the opposite if your firm is a hotel receivership company. Lenders may decide not to wait very long to foreclose and will reach out to find a court receiver instead. Are you a bank, lender or lawyer representing a financial institution with distressed hotels? Are you looking at hotel receivership services as part of your 2011 and 2012 plans to foreclose or sell the asset? If not, why not? Please share your comments with our readers.
