Debt Management

As a Lender, you are facing an increasing level of sub-performing and non-performing hotel loans. Whether you are looking for an overall assessment of your lodging and hospitality-related risks, or a complete assistance to proactively manage your capital ratio requirements and recover your losses, our team is ready to address your challenges.

We are currently monitoring more than 200 hotels’ performance, representing USD 2 billion of hotel collateral and we are the sole company to have structured a global answer for debt monitoring in the hospitality industry. After having understood your specific issues, we will offer you all, or part of the following services:

Step 1

In a first audit, we will help you establish a complete assessment of your lodging and hospitality risks’ exposure and provide you with an assessment of the probability of default for each of your hotel loan.
Thanks to our exclusive software (Advanced Debt Monitoring or ADM©), we will model the operational cost structure of each hotel and then stress its revenue in order to forecast the Available Cash for Debt Service (ACDS).
This audit will rank every hotel and every loan according to the result of our ACDS stress test. This ranking may be conducted in partnership with you or entirely generated by our dedicated team.

Step 2

We will then rate these loans in 3 categories and design a strategy tailored to their category specifics:

 

Performing loans:

We will offer monitoring of the collateral's operational performance through desktop studies on a quarterly basis. To secure our ranking, we will assess both the operational performance and the 12-months ACDS rolling projection.

Sub-performing loans:

We will perform a monthly review of both operational and head office performances, plus a 36-months ACDS rolling forecast, according to different revenue scenarios. In order to avoid any performance wipeout, we will also initiate a mutual trust relationship with the borrower.
(More details on how we offer guidance to the borrower)

Non-performing loans:

We will concentrate on drawing up an appropriate and accurate exit roadmap for each loan in order to maximize your recovery.
(More details on our approach on intensive care strategies).

Assessment of your credit risk exposure Get the picture