Hotels, restaurants and nightclubs are often risky investments. The value depends on many factors: seasonal variations, optimization of location, shifts in clientele, and the general state of the economy. When properties start to lose value, creditors often look for ways to preserve and enhance the value of what they see as their investment assets. A federal…
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…
If you are a lender, creditor or attorney representing one and are seeking to appoint a California hotel receiver as part of a pending foreclosure, learn more about the in and outs of receiverships at this event in Squaw Valley near Lake Tahoe on May 21, 2011. Chaired by Bruce Cornelius, who is an experienced…
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…
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…
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…