ATLANTA—Due to the effects of Covid-19, it’s estimated that roughly 4,000 U.S. hotels in the United States cannot keep up with their mortgage payments, and delinquent mortgage accounts can easily pave the way to foreclosure.
A report sent to Congress in August 2020 showed that 23.4 percent of hotel properties were 30 days or more delinquent on their outstanding mortgages. Failure to make mortgage obligations eventually leads to hotel foreclosure and closures. Employees, syndicators, hotel owners, investors, and banks will all lose. Today, banks are alarmed and concerned about the growing loan loss reserves from their portfolio of hospitality clients due to the Covid-19 effect.
Due to this urgent situation, a private equity firm launched HotelRescueCapital.com/green as a way to help hotel owners to not lose their hotels to foreclosure.
“Doing a shortsale, or handing over the keys to the bank are not good solutions. In that scenario, the owner loses the hotel and his/her reputation with investors, syndicators, and bankers. In addition, the employees of a foreclosed hotel will also lose their jobs,” says Lorentine Green, Acquisition Specialist of HotelRescueCapital.com/l-green. “But by infusing cash (or rescue capital) into struggling hotels, we are providing a way out for these hotels to survive the downturn.”
The HotelRescueCapital.com’s private equity firm and hotel operator have never lost a hotel in over 30 years. They have delivered higher RevPAR versus its competition through 9/11, recession, and other economic and political upheavals. The group and partners manage nearly $2 billion worth of hotels across brands such as Hilton, Hyatt, and Marriott, across the United States. They are “turnaround” specialists, saving hotels from foreclosure and hotel owners from bankruptcy long before Covid-19. Per Lorentine, “We are well positioned to help save a hundred hotels while saving a few thousand jobs in the process.”