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Hotel Lawyer: Distressed hotel investments — Maximizing the value for Lenders, Borrowers and Investors

01 October 2009

Please see “troubled hotel loans – workouts, bankruptcies & receiverships” for the latest articles on troubled hotels.

Our national hotel practice focuses on being the legal and business advisors for lenders, borrowers and investors. With the hotel industry suffering a record-breaking collapse of revenues and no immediate relief in sight, everyone is starting to examine available options.


How to maximize value of your distressed hotel

Recently, Chris Crowell of Hotel and Motel Management researched and published a helpful article on maximizing the value of a distressed hotel. If you missed it, you should take a look.

Crowell writes: “It’s far from an ideal situation, but it’s a reality of the industry today–many hotel owners will deal with a distressed property. After accepting this reality, borrowers must form a specific plan to maximize property value, minimize personal financial loss and move on.

Depending on the particular loan situation, there are a variety of options borrowers need to consider.” The article describes three of the options that are available to owners: workouts, defaults and bankruptcy.

Troubled hotel investment tools and resources

Our team has been through all the major down cycles since the 1980s. We have represented clients in more than 1,000 workouts, receiverships and bankruptcies.

We have developed win-win solutions for lenders and borrowers that come from our deep understanding of what lenders and borrowers really want. Some of these solutions creative approaches such as
JMBM’s SAVE® program
and our Enhanced Note Sale™.

Hotel lenders, borrowers and investors tell us that their eyes are opened to new possibilities by our hotel workout tools such as Butler’s Matrix and our Key to Hotel Mortgage Loan Defaults.

They also appreciate our pragmatic guidance on issues such as

This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We’ve done more than $60 billion of hotel transactions and have developed innovative solutions to unlock value from troubled hotel transactions. Who’s your hotel lawyer?

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Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,000 properties all over the world. For more information, please contact Jim Butler at jbutler@jmbm.com or 310.201.3526.

Jim Butler is a founding partner of JMBM and Chairman of its Global Hospitality Group®. Jim is one of the top hospitality attorneys in the world. GOOGLE “hotel lawyer” and you will see why.

JMBM’s troubled asset team has handled more than 1,000 receiverships, bankruptcies and workouts, including many complex insolvency issues. But Jim and his team are more than “just” great hotel lawyers. They are also hospitality consultants and business advisors. For example, they have developed some unique proprietary approaches to unlock value in underwater hotels that can benefit lenders, borrowers and investors. (GOOGLE “JMBM’s SAVE® program”.)

Whether it is a troubled investment or new transaction, JMBM’s Global Hospitality Group® creates legal and business solutions for hotel owners and lenders. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.