CHM's Hotel Asset Management - Real Estate Owned Strategy

Real Estate Owned Strategy

CHM's asset management of real estate owned hotels provides lenders with a high-impact solution during the hold period and a carefully executed disposition plan.

Following foreclosure, the focus shifts to implementing initiatives identified in the Strategic Plan to optimizing hotel value and posturing for a targeted disposition. Exit strategies during the current phase of the lodging cycle lend a new complexity to lender-owned real estate, as the timing of disposition may be extended, leaving lenders owning hotels for longer periods than anticipated. Therefore, CHM's services are designed to both plan for the future execution of a sale, while also providing oversight and strategies to optimize cash flow in the short-term. As part of the Real Estate Owned strategy, CHM will:

Prepare and distribute required ownership reporting
Prepare valuation and sensitivity analyses in preparation for disposition
Provide continued monitoring of hold/sell analysis and timing
Provide on-going monitoring of cash flow and hotel operations
Review and analyze annual budget/business plans
Manage local, key stakeholder relationships
Qualify existing and propose capital improvement/expenditure plan
Administer risk management programs (insurance, litigation, etc.)
Implement initiatives to optimize cash flow (i.e. assess staffing levels, review cost structure, negotiate with brand operator, etc.)
Provide recommendations regarding management and branding
Represent lender interests in all potential key contract negotiations
Coordinate hotel disposition efforts
Executing asset disposition