Distressed Hotels

The Bricton Group, Inc has a proven and successful track record in working with a distressed hotel or one that has entered into receivership.  When working with the lending institution or owner, we will work efficiently and quickly to identify problem areas within the asset.  Typically cash is in short supply and the property has suffered.

Operating from the perspective of an owner of the distressed hotel, The Bricton Group will formulate a detailed plan of action.  The focus is on four key areas:

Physical Plant - The asset will undergo a thorough inspection to determine pressing needs and needs which can be postponed.  Our experience in re-positioning hotels assists us in making smart decisions on how to implement changes to the asset and impact the guest without a significant capital investment.

Employees - All key employees are interviewed and either re-hired or terminated.  For those employees that will remain, a dedicated focus will be placed on improving morale.

Financial Reporting - Our reputation of generating timely and detailed financial information for distressed hotels or hotels in receivership has allowed us to create a strong reference list - both from owners and from the courts.

Revenue Generation - The Bricton Group brings a very tactical approach to increasing revenues for distressed hotels or hotels in receivership.  All areas are put under a microscope:  direct sales, third party channels (hotels.com, Travelocity) brand contribution, billboards, media programs, etc.  We creatively search for ways to make an immediate and cost-effiective impact on revenues.

Once we stablize the asset, typically three to six months, we work with the owner/lender in developing a disposition plan to maximize proceeds.  The plan will include recommending, interviewing and selecting the proper brokerage firm to market the distressed hotel.

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