In these uncertain economic times many hotel investments have fallen upon hard times. As owners and operators of hotels for 3 decades, Associated Hotels understands these cyclical challenges and understands how to manage hotels during these periods to ensure the best possible outcome for the owner or lender as the case may be. 
Associated Hotels has been appointed as receiver for 8 hotels over the past 24 months including 2 hotels totaling 275 rooms in Champaign, Illinois. Our experience in this area allows for the smoothest possible transition and gives us the ability to stabilize the asset quickly in order to prevent any erosion of hotel performance. Initially, Associated ensures that the safety and security of the hotel for all parties is addressed including the hotel's guests and employees. Employee issues are handled, new bank accounts opened, customers and appropriate local officials and vendors are notified.  Simultaneously, Associated   implements the financial and reporting safeguards to ensure that the cash, credit cards, inventories, and accounts receivable are managed properly.  Associated then begins to implement its proven revenue management and operational systems so that the property can begin to drive revenue and profitability. Once the property is stabilized and systems in place, Associated then prepares an asset strategy based upon the market, condition of the hotel, brand, and lender concerns. 
A hotel is a very different type of asset that is labor intensive and has many challenges that are different from other forms of real estate. Some of the most critical aspects a lender inherits when assuming control of a hotel are items such as brand stabilization, liquor licenses, employee/employer relationships, permits and required local licenses.  These are just a few of the many items that Associated is experienced in handling as a Receiver. This experience is invaluable in maintaining and improving the performance and value of a hotel. 
Associated has also acted as a consultant and asset manager over the last decade to assist owners in determining the proper course and direction for their hotel asset. Engagements have included a 200 room hotel in South Bend, Indiana and a 214 room Marriott in Key West, Florida. As a fresh set of eyes, Associated can assist the owner, based on their goals and objectives, in determining the appropriate direction for their hotel asset
Saturday September 21, 2019