Recent wisdom in the distressed hotel real estate asset sector suggests that there are a dearth of court appointed hotel receivers taking over a large number of hotels in default on behalf of lenders and special servicers throughout California. According to recent reports, the number of hotels in default or foreclosure throughout the Golden State…
Measure Twice, Cut Once As with all receiverships, it is especially critical for a Court Appointed Receiver in a limited-purpose capacity to have everything clearly defined and spelled out in the initial court order granting authority to appoint a Receiver. It is also best for the respective city or county legal counsel, who will be…
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…
Several articles published recently highlight the movement of distressed hotel real estate and what could accelerate hospitality sector investment according to Perry Group’s Hotel Asset Manager and Hospitality Asset Management specialist. This is being defined by major potential sources of hotel acquisitions and dispositions including Real Estate Investment Trusts (REITs), Banks non-performing loans and hotel…
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…
There are more signs this week that big money and hotel investment activity is picking up and will begin to add to more reductions of distressed hotel real estate inventories going into late 2010, according to Perry Group’s Hotel Asset Manager and Hospitality Asset Management specialist. After going dark for most of 2009, hotel sector…
Earlier this year I attended a hotel valuation workshop to better understand in part what affect today’s investment and lending market will have on hotel real estate values and subsequent sales by a court appointed receiver in hotel receiverships. Put on by The Appraisal Institute of Northern California, the issues focused on how the valuation…
In the recent October 2010 Lender News published by Atlas Hospitality, the delinquency of Commercial Mortgage Backed Securities (CMBS) loans rose again in August. Hotels are hurt the worst with the highest delinquency at 15.5%. However, it has not triggered any increased use of a court receiver and hotel receivership as an alternative remedy to…
In Part 1 of this blog topic, I talked briefly about the the cost of hotel receivership services related to a rents and profits action and a court appointed hotel receiver and interim hotel management. Where there is a judgement to collect, such as an outstanding balance owed on sales taxes or a defaulted second…