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| HOTEL LENDER SERVICES |
| Strategic thinking, coupled with vast experience in asset managing lodging and related real estate, GHM Properties delivers proven strategies for stabilizing distressed assets and recovering lost value. |
| GHM Properties has extensive experience in asset managing hotels at varying stages of transition and has partnered with the lending community for nearly two decades, developing strategies to recover collateral value and execute a timely exit successfully on behalf of a wide variety of financial institutions. |
| In light of recent economic conditions, there has been a resurgence in the marketing of lender services—"Hotel Receivership" and "Distressed Assets" are active buzzwords within the lodging industry being touted by a wide-variety of groups, including hotel consultants, management companies and independent advisors, all of which have shifted their menu of services to include lenders. |
| GHM Properties has remained true to its core business of providing unparalleled hotel asset management and investment advisory services and has neither reinvented the wheel, nor re-packaged our services to appeal to the masses. Rather, what we offer are the same time-tested techniques and expertise that has proven successful in targeting issues and addressing challenges of hotels and the entities that own them. The fundamental approach and process with respect to all ownership groups is the same - understand investment objectives & develop & implement the optimal strategy for achieving results. |
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| RECEIVERSHIP |
| Speed to deployment, asset stabilization, reduction of financial distress and risk mitigation are all key elements of GHM Properties's strategy. |
| GHM Properties recognizes the unique circumstances surrounding lenders dealing with financially challenged hotel assets, and the importance of protecting the property and the related operating entity securing the loan. We also understand the process by which hotels may progress and transition from borrower, to foreclosure, to lender and offers services that are applicable and effective during each stage of this process. GHM Properties provides an entrepreneurial approach, customized to address lender needs including: |
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Rapid deployment and asset engagement ramp-up; |
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Dedicated on-site hotel asset management staff; |
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"SWAT Team" approach—aligning seasoned subject matter experts with complex issues, able to tackle mixed-use and complex visitor-based asset components (hotel, residential, condominium hotel, retail, food and beverage); |
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Operational, financial and legal risk mitigation; |
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Close monitoring of cash flow and early identification of financial issues; |
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Real time, customized and concise reporting and communications; |
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GHM Properties best practices, systems and strategies to stabilize operational performance of the asset; and, |
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Timely and optimal asset exit. |
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| Understanding that speed to deployment and stabilization are key during the initial take-back, GHM Properties is positioned to initiate a transition typically within 24 to 48 hours. During the first 30 to 60 days that follow, GHM Properties's efforts are focused on effectuating a smooth transition, quickly identifying and implementing initiatives geared at stabilizing the asset, reducing financial distress, mitigating risk and establishing direction for on-going asset management of the asset. While tasks and analyses are customized based on specific asset components and lender requirements, GHM Properties's Receivership Strategy highlights initiatives and action steps typically included during this critical transition phase. |
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| REAL ESTATE OWNED (REO) |
| GHM Properties'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, GHM Properties'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,GHM Properties will: |
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Prepare and distribute required ownership reporting |
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Prepare valuation and sensitivity analyses in preparation for disposition |
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Provide continued monitoring of hold/sell analysis and timing |
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Provide on-going monitoring of cash flow and hotel operations |
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Review and analyze annual budget/business plans |
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Manage local, key stakeholder relationships |
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Qualify existing and propose capital improvement/expenditure plan |
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Administer risk management programs (insurance, litigation, etc.) |
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Implement initiatives to optimize cash flow (i.e. assess staffing levels, review cost structure, negotiate with brand operator, etc.) |
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Provide recommendations regarding management and branding |
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Represent lender interests in all potential key contract negotiations |
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Coordinate hotel disposition efforts |
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Executing asset disposition |
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| LENDER ACCOUNTING SERVICES |
| Led by GHM Properties's Corporate Controller, the GHM Properties Accounting Team is available to provide a wide-variety of ownership-level accounting services. While services are fully customized to meet specific client needs, the following provides a sample of the accounting role GHM Properties currently fulfills on behalf of several existing clients: |
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Recordkeeping: Perform ownership-level, US GAAP based accounting and financial reporting not typically provided by hotel operator, to include calculations for interest, taxes, depreciation, amortization, or the related balance sheet accounts. |
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Cash Flow Forecasting & Planning: Prepare cash flow forecasts for the ownership entity taking into account forecasted cash from operations, projected debt service obligations, ownership expenses, and other obligations under the management agreement to assist with planning for any cash requirements or distributions. |
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Compliance: Coordinate Audit, Tax, and Debt compliance with outside CPA firms, lenders and legal counsel. |
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Disposition: Draft Purchase and Sale Agreement proration language with legal counsel and coordinate the calculation of proration adjustments with the hotel manager/Controller and outside accountants to ensure accuracy. |
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