Crescent Hotels & Resorts, in additional to its hotel management services, can also provide receivership services. We fully understand that the selection of a hotel receiver can have a significant impact on the ultimate selling price of a hotel. And to be most effective, a hotel receiver requires a thorough knowledge of the hotel industry and a clear understanding that a hotel is much more of an operating business than any other type of commercial real estate.
Our experience in hotel operations, and ownership of both full and select service branded and independent hotels enables us to provide effective receivership services to quickly gain control of the asset, increase its value, and maximize the sale, if that is the desired result. We can ensure that troubled assets are operated in a smooth, cost effective manner during this critical transition phase. Crescent has a solid history of working as a receiver with institutional owners of distressed hotels and has acted as a receiver for 19 properties in 11 states.
In Selecting Crescent Hotels & Resorts The Lender Would Obtain The Following Receivership Services:
Review The Order
The proposed receiver reviews the order to ensure sufficient scope and authority to preserve and create value.
Initial Court Appearance
Crescent appears before local judge for purposes of providing testimony, presenting qualifications, settˇng bond, and implementing receivership order.
As receiver, Crescent's management appears at hotel with order to take immediate possession of all real and personal assets. These assets include securing cash on property and seizing all accounts. Provides a detailed FF&E inventory and provides the courts with this information. Stabilizes the employees for efficient takeover. Additionally, Crescent sends notification of receivership status to franchisor, all vendors, lesees, and other interested parties.
Crescent's management team understands that the asset's financial welfare depends on sound operations. We make sure that the assets of the property, both physical and monetary are protected and accounted for. As receiver, Crescent's ongoing duties include but are not limited to protectˇng the franchise, dealing with any outstanding state and local sales and occupancy taxes, handling any pre-takeover lawsuits, claims, or outstanding insurance matters, obtaining control of any deposits from utilities and/or governmental entities, and managing pre-takeover vendors and lease-holders.
Prepares a monthly receiver's report as directed by the court and issues a final accounting to the court after foreclosure.
As a hotel management firm, Crescent's management team realizes issues may require services on a case-by-case basis. Management personnel are available to discuss special needs particular to the property. The accounting system that Crescent utilizes permˇts our clients to view financial data over the internet using a web browser, allowing the interested parties to stay up to date with the business of their asset.
Crescent Hotels & Resorts are able to develop a strategˇc plan designed to maximize the hotel selling price. We can recommend an appropriate investment sales broker to effectively market the hotel for sale and show the hotel in the best possible light to prospective buyers. Crescent will work hard to help effectively dispose of the hotel asset.
Some common duties of the receiving organization:
Take possession of the hotel and all related bank accounts, keys, codes,
Oversee management to ensure the hotel is operating soundly
Create new operational and accounting protocols
Determine if the property requires major maintenance, renovations or capital improvements
Notify all creditors and suppliers of the appointment as the receiver
Review and determine if franchise agreements, insurance policies, vendor contracts and leases need to be continued, terminated, or renegotiated
Make all necessary court reports
Report progress to stakeholders
When is Receivership a Good Option?
The main purpose of a receivership is to remove control from the borrower, implement management and other necessary changes, and help determine how to remedy property distress. Consequently, receivership is a good option when the distress is mostly a result of the hotel's current management issues. A receiver often replaces old hotel managers with new, more competent management to enhance profitability and value.