Arizona Hotel Receivership

Interim Management, Cash Flow Management, Strategic Plan, Brokerage, Asset Disposition

Hotel with Swimming Pool

As State Court Receiver of a non-performing chain hotel property in Yuma, Arizona with asbestos, we successfully achieved a loan recovery for the lender.  The Receivership Sale eliminated any future environmental liability risk for the lender that could have resulted from a foreclosure.

Our key actions leading to operating improvements and a successful sale of the property included:

  • Thwarted cyber-pirate’s attempt to take the reservation system hostage and avoided paying ransom
  • Removed the borrower, who was stealing FF&E and moving it to another property
  • Stabilized the property operations and assured the property had a functional reservation system
  • Kept the property open via managing to positive net cash flow
  • Negotiated with national brand to assure assignability of franchise agreement
  • Shut down all rooms that were health risks
  • Preserved value

Upon taking possession of the property, we:

  • Managed all hotel operations, including hiring and overseeing a general manager
  • Updated and managed all reservation systems
  • Collected all income and paid all property related expenses.
  • Delivered detailed property-related accounting to court and creditors on a regular basis.
  • Worked to stabilize property and improve RevPAR.
  • Hired third-party sales agent and approved and directed all marketing activity
  • Reviewed and selected buyers and negotiated all purchase contracts with buyer
  • Coordinated all legal processes required to achieve court approval of the sale
  • Coordinated all escrow and title requirements to successfully close the sale

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