Hotel Receivership and
Loan Resolution Strategies
GF Management is involved with lenders across the US in the loan resolution process, at times preparing workout evaluations and also acting in the capacity of Receiver.
Over the past twenty-five years, GF Management or one of its affiliates has acted as a receiver for hotel properties throughout the country and has performed hotel management, receiverships, workouts, and evaluated over 400 hotel properties for financial institutions.
With and extensive history of working with financial institutions, the legal community and hospitality partners, Jeffrey Kolessar, Senior Vice President of Development is GF's Receivership Specialist. Please click here to learn more about Jeff's professional experience.
GF Management has long been known for its turnaround management systems and its success derived from the transitioning of properties with which we’ve been involved. Our solid expertise in this field provides our clients with efficient, cost effective and positive results.
Pre-take Over Analysis
GF Management is perceptive to lenders’ and servicers’ liability concerns and is familiar with what needs to be achieved in positions of negotiated handovers, foreclosure, bankruptcy and deed-in-lieu. Prior to a transition of a property, our team takes great strides to understand the situation of the asset and collect the necessary materials to do so.
At the beginning of the process, GF will provide a comprehensive list of documents required to effectively operate the property. Such documents include franchise agreements, permits, leases, licenses and inspection reports - and if necessary, GF can assist in obtaining those documents. With these documents, GF will work with the franchisor, vendors and contract holders to negotiate the best terms for the present situation of the property.
Role of Receiver
GF has been involved in over 240 receivership hearings in 35 states, frequently testifying as an expert witness for the lender taking back the property. GF has the needed receivership experience and understands the legal intricacies involved, as well as the unique challenges typically found in distressed properties.
At the point in which a lender sets forth to take back a property, GF can assist with the appropriate language necessary to form a well organized Order Appointing Receiver, so that all parties are best represented. Unlike other companies in the field, there is typically no additional cost for GF to assume the role of Receiver for a property.
Securing the Asset
GF’s qualified take-over team can be on-site at the location within 24 hours of receiving the assignment. An extensive step-by-step takeover plan is then prepared, conveying GF’s program of acquiring the asset. We provide the same strong operational support to all assignments, no matter the situation. At the time of the takeover, GF takes the immediate steps to secure and protect the asset.
Our takeover process is implemented with the least possible disruption of daily operations. GF will make certain that the property is in compliance with any governmental regulations that may give rise to possible liability, especially life safety.
Incisive, objective and timely reporting is at the heart of GF’s systematic approach to hotel management and differentiates its services from those of other management companies. The aim of GF’s reporting systems is to provide up-to-the-minute snapshots of revenue and profitability, as well as tracking key issues, eliminating and surprises for the lender. This is critically important in distressed / receivership situations.
Management & Operations
Life safety will be addressed first. Following that, an assessment of repairs need to meet the minimum franchise requirements, if applicable, will be made. All repairs recommended will make a direct improvement in sales.
GF will assemble a driven, qualified team to oversee the property, evaluate the product, develop a plan for better profitability and assess the market potential. GF will implement the appropriate systems, procedures and resources (see Management Services) to operate the property. Our expert systems raise the level of the asset, therein maximizing the potential value and conclusively assisting the lender to divest of the property.
Financial & Accounting Services
GF Management can coordinate centralized accounting offsite, which is more economical and allows for better security and control. We implement full service financial analysis at each property.
Each property will be analyzed based upon pre-determined standards and efficiencies and against industry norms. Specifically, the GF team will review the following: budget preparation, cash flow analysis, internal control, financial restructuring and inventory control.