Forecast Calls For Largest Wave of Hotel Foreclosures in History
Most agreed during Janaury 2010's ALIS Conference that looming somewhere out there is a Perfect Storm that will bring down upon the hotel indsurty the largest wave of foreclosures in modern history.The following are few condtions that make a Perfect Storm possible:
- No end in site of downturn economy = continued depression of occupancy and especially ADR
Over $100 million a day in hotels going into default
- Lenders reluctant to foreclose on assets because of concern of placing bad debt on their balance sheets
- Only active buyers in market are vultures
- Those who do wish to buy one off deals face high cost of money
- Traditional debt hard to find, high debt/equity ratio
- Difficulty valuing assets on trailing 12 or 24
HERE ARE THREE QUESTIONS TO DECIDE IF YOU WILL BE READY FOR THE BIG ONE:
- Has your asset or management team ever sailed safely through a gale force 6 storm?
- Are you certain the Captain of your ship has every hatch battened down and rope secured for rough seas ahead?
- Is the Coast Guard Ship "Hotel Receiver" on its way to save you and your cargo?
If you answered NO to any of the above questions I suggest you pop a flare so I can arrange to have R&R Global deploy our Rescue Task Force Signature Partners and save your asset. For a "Free Life Vest" fitting contact: Russ Dazzio Chairman R&R Global Hosptiality (626) 792.0749 Direct (626) 695.7736 Cell firstname.lastname@example.org