For non-pPerforming loans, we will usually draw up several “intensive care” strategies to recover your losses according to the specificity of each loan.
To help you set up your conclusion, we will work across your key functional departments and conduct a global analysis of each hotel’s operational potential, including:
- An in-depth operational audit of each distressed hotel (Operational Procedures and P&L Statement) to accurately model its cost structure and understand its own cash flow cycle. A central objective of this audit is to deliver a precise forecast of the “potential restructured Available Cash for Debt Service” (ACDS) for the next 5 years, according to different revenue scenarios.
- An assessment of the borrower’s head office performance and management competencies through extra financial criteria.
Depending on the results of our modeling and assessment of your assets' potential, we will discuss together the opportunity of the following exit strategies:
Get it out of your book
- Transfer to a SPV
- Discounted Sale
Thanks to our extended network in the hospitality industry, we will ease up for you the difficult task of finding a buyer.
Keep it in your book
- Debt restructuring
Each hotel has its own cash flow cycle, depending on its location and client mix. If your decision is to keep a non-performing loan in your books, we will help you optimize your current debt structure.
At the same time, when necessary, we will encourage the borrower to sell assets and repay the outstanding loan balance.
- Debt to Equity Swap
Debt to equity swap or foreclosure can sometimes hold the best potential to recover your losses. If you are willing to enter these assets into your equity books, we will support you with challenge, by bringing our Inspiration and Resources to build a complete recovery roadmap.
Thanks to our management expertise spanning the full spectrum of the hospitality services, we will become the new operational manager, turnaround and resell the asset within a short to mid-term horizon, thus turning your nightmare into a “Success Story”.