News for the Hospitality Executive |
LEAWOOD, KS (October 6, 2011) - Leisure Hotel Corporation and Leisure Real Estate Advisors, part of the Leisure Group of Companies, has most recently doubled the number of Distressed Hotel Assets within their portfolio. Leisure’s unique one-stop hotel receivership, management and brokerage services – established with a 26-year proven track record of managing and brokering distressed hotels, resorts and condos – stabilizes troubled assets and operates them in a smooth and cost-effective manner, especially during the critical receivership/transition phase. Many hotel owners have unfortunately become over-leveraged with debt and are now faced with declining revenues and repayment due dates. Leisure’s experience and expertise assists hotel owners, lenders and legal representatives during these difficult times. “It is unfortunate that our recent growth comes on the heels of others misfortune, commented Leisure’s CEO and President Steve Olson. The lodging industry continues to be faced with a crisis unseen since the late 80’s when what was then the RTC (Resolution Trust Corporation) was formed to take control of the large numbers of nonperforming real estate loans that the banks were unable to support. The difference this time is rather then the RTC managing the assets and liquidating them; the insolvent banks are being closed and immediately resold to more stable banks with government guarantees. Unfortunately most lending institutions are not prepared to take over a business as complex as a hotel or resort, especially when it involves franchise relations as well as capital improvement requirements by the franchise. In some cases if the franchise is not maintained it can result in the loss of as much as half the value of the property due to the loss in business associated with the franchise. Our job is to tell the bank what they have, its value, the capital needs, any franchise issues, develop a business plan as well as an ultimate liquidation plan that preserves as much value as possible”. Olson pointed to Leisure's nationally ranked brokerage service, Leisure Real Estate Advisors, a full service brokerage company with extensive experience selling specific assets such as these. It was featured in the 2008 Hotel Business 10th Anniversary Green Book as one of the nation's top hotel brokerage firms. In the same report, the company garnered additional recognition when Leisure Hotels was ranked 64th in the nation among independent, third-party management companies. "Our
bank received 36 hours notice that our collateral (hotel) was to be
abandoned.
Leisure assembled a complete property management team, assumed control
of the
property, addressed significant deferred maintenance, stabilized
earnings, and
now is brokering the property. I could not be more pleased with the
work done
by the Leisure Hotel team", David Hodge, Chief Credit Officer for First
State Bank in Kansas City stated. |
Contact: Steve Olson President/CEO [email protected] 913-499-4707 Brent A. Jaynes, Managing Partner Leisure Real Estate Advisors, LLC [email protected] 913-499-4731 Leisure Group of Companies 4501 College Blvd Suite 275 Leawood, Kansas 66211 Phone - 913-905-1460 www.leisurehotel.com [email protected]
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