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How to Maximize Value of Your Distressed Hotel

By Jim Butler
October 6, 2009

Recently, Chris Crowell of Hotel and Motel Management researched and published a helpful article on maximizing the value of a distressed hotel. If you missed it, you should take a look

Crowell writes: "It's far from an ideal situation, but it's a reality of the industry today--many hotel owners will deal with a distressed property. After accepting this reality, borrowers must form a specific plan to maximize property value, minimize personal financial loss and move on. 

Depending on the particular loan situation, there are a variety of options borrowers need to consider." The article describes three of the options that are available to owners: 

  1. workouts, 
  2. defaults and 
  3. bankruptcy. 
Troubled hotel investment tools and resources

Our team has been through all the major down cycles since the 1980s. We have represented clients in more than 1,000 workouts, receiverships and bankruptcies.

We have developed win-win solutions for lenders and borrowers that come from our deep understanding of what lenders and borrowers really want. Some of these solutions creative approaches such as JMBM's SAVE™ program and our Enhanced Note Sale™.

Hotel lenders, borrowers and investors tell us that their eyes are opened to new possibilities by our hotel workout tools such as Butler's Matrix and our Key to Hotel Mortgage Loan Defaults.

They also appreciate our pragmatic guidance on issues such as

Jim Butler is one of the top hotel lawyers in the world. GOOGLE “hotel lawyer” or “hotel mixed-use” or “condo hotel lawyer” and you will see why.  He devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders.  Jim leads JMBM’s Global Hospitality Group®—a team of 50 seasoned professionals with more than $40 billion of hotel transactional experience, involving more than 1,000 properties located around the globe. In the last 5 years alone, they have brought their practical advice to more than 80 “hotel-enhanced mixed-use” projects, a term Jim coined to fill a void in industry lexicon.  This term describes one of the hottest developments in real estate-where hotels work together with shopping center, residential, office, retail, spa and sports facility components to mutually enhance the entire project’s excitement and success. Jim and his team are more than “just” great hotel lawyers.  They are also hospitality consultants and business advisors.  They are deal makers.  They can help find the right operator or capital provider. They know who to call and how to reach them. They are a major gateway of hotel finance, facilitating the flow of capital with their legal skill, hospitality industry knowledge and ability to find the right “fit” for all parts of the capital stack.  Because they are part of the very fabric of the hotel industry, they are able to help clients identify key business goals, assemble the right team, strategize the approach to optimize value and then get the deal done.  Jim is the author of the Hotel Law Blog,  He can be reached at +1 310.201.3526 or

Jim Butler
Chairman, Global Hospitality Group
Jeffer, Mangels, Butler & Marmaro LLP
1900 Avenue of the Stars, 7th Floor
Los Angeles, CA 90067-4308
(310) 201-3526 direct

Also See: The Hotel Owner's and Hotel Lender's Dilemma: Sell Now or Sell Later? How Long Does it Take to Market a Hotel Today? / Jim Butler / September 2009
Hotel Borrower Dilemma: the Note Is in Default or Coming Due; Helping Borrowers Create Value with Distressed Hotels / Jim Butler / April 2009



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