Considerations For Operators Of Distressed Hotels

In our previous articles, we detailed some of the issues and considerations for key hotel industry stakeholders in navigating the current distressed landscape, including the growing number of hotels headed toward loan defaults and foreclosures. While hotel owners, operators, franchisors, and lenders each have difficult and unique questions to answer, in today's climate perhaps no constituent faces a more complex situation than the hotel operator. When a hotel is not generating sufficient revenues to cover its expenses and ownership no longer supports a failing asset, its hotel, what happens next? The hotel still has guests checking in and out, complex operations to carry out, bills to pay, and reservations on the books. In this article, we explore some of the issues facing operators as they navigate these uncertain times.