Troubled Hotel Takes a Profitable Turn
Haynsworth Sinkler Boyd helps make it possible
Our client was presented with the chance to acquire a poorly operated hotel at an ideal location in a resort community. We assisted the client in assessing the transaction.
The major problems:
- ground leases with terms that would be unacceptable to a lender
- debts and claims against the seller exceeding what our client was willing to pay
- an unfavorable franchise agreement
We helped the client structure the transaction and renegotiate key agreements.
The solutions:
- negotiating with the ground lessor to conform the ground leases to permanent lending standards
- negotiating with the seller’s creditors to reduce the debt and claims
- working with the franchisor to improve the terms of the agreement
Our client acquired the hotel, completed renovations, improved management and almost immediately created a more valuable property.