In Receivership situations, Quorum Hotel Advisors is normally engaged by the court-appointed Receiver to assume oversight of day-to-day operations. Quorum believes that a Receiver and an Operator should be two different entities given the unique skill sets demanded of each. Quorum can help the Receiver secure the asset for the court while simultaneously providing experienced hotel oversight of the property.
With over 300 years of combined hospitality asset management knowledge and expertise, Quorum will help the Receiver ensure all of the right legal and operational steps are taken throughout the receivership process to preserve the value of the asset. As part of our receivership services, Quorum will review and assist the Receiver with the “Order- Appointing Receiver.” By assisting in its preparation, Quorum can help identify numerous hotel industry specific situations with which legal counsel may not be familiar. Our experience allows us to effectively perform all necessary actions such as:
- Securing all books, records, bank accounts, cash, check books, keys, codes, contracts, permits and licenses from debtor/owner or representative
- Opening new bank accounts and paying critical vendors, if necessary
- Entering into essential service provider agreements such as utilities, security and employment agreements; inspecting and evaluating all vendor, maintenance and rental contracts and leases - renegotiate where needed to achieve the most cost effective terms
- Perform property, management and financial assessments relating to the asset
- Re-establish any and all financial controls that may have deteriorated, including the replacement of any proprietary computer systems or software removed from property by former brand manager
- Evaluate and recommend new brand solutions, franchise opportunities and more effective reservation systems to maximize the property’s market share
- Determine the capabilities of on-site staff and managers and their ability to continue to be of value to the asset
In many receivership situations, the process itself further impacts a hotel’s performance since most hotel receivers do not operate in the lodging business. Quorum understands the hurdles, challenges and opportunities when transitioning a property and developing a new strategic plan of action. Quorum has been involved in over 45 distressed hotel situations since 1987.
Hotel Receiver Groups
There are a number of well-established groups in the hotel Receiver business. For further information on certain groups that we work with please visit:
· Summit Capital | Kevin McTavish, Managing Partner | 972.265.1890 | http://www.sc-im.net
· Dynamic Asset Management | Stephen Rosenburgh, CEO | 704.973.9037 | http://www.dynamicassetmanagement.com/