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