"I could not be more pleased with the work done by the Leisure Hotel team”
Chief Credit Officer
First State Bank in Kansas City
Leawood, KS (PRWEB) October 04, 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 hotel 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 hotel 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.
Leisure’s Hotel Receivership Services offer a complete platform of hotel management solutions under the umbrella of a leading multi-faceted, full service hotel company. For example, Leisure Hotels operates numerous well-known franchise branded hotels and has solid relationships with Intercontinental Hotels Group (IHG), Hilton, Hyatt and Choice Hotels, and a number of independent hotels and resorts.
For additional information regarding Hotel Receivership Services, contact Steve Olson at 913-905-1460, ext. 107.
About Leisure Hotels
Leisure Hotels is a third-party hotel management company that operates as a division of Kansas-based Leisure Group of Companies, which specializes in hotel and convention center development, construction management, brokerage services and hotel management in the resort, extended stay and full service markets. With corporate offices in the Kansas City metro area and employing more than 800 people, Leisure is one of the industry’s leading multi-faceted full service hotel companies. Using the latest in technological developments, Leisure provides hotels with complete operational and financial services, as well as extensive human resource training and development.
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