Thirty years of experience in owning and operating hotels of all types enables Charlestowne Hotels to act as a receiver for hotels and inns that have transitioned from borrower’s to lender’s control. No matter whether there is a single, senior debt-holder or CMBS financing, the same expertise that serves the long term interests of hotel owners is equally effective for the temporary operation of defaulted or foreclosed hotel assets.
Charlestowne Hotels is able to apply the same resources to short-term asset receiverships as it does to longer-term engagements. They will bring in a team and prepare an operations overview report with assessment of the operating conditions at the asset usually within three to five days. This enables the hotel lenders or special servicer’s asset manager to make informed decisions quickly. Once a commitment is made to continue operations and engage Charlestowne Hotels as receiver, they delve into cash handling and accounting practices, loss control, inventory control, purchasing practices, labor costs, and care of the facility – all with an eye toward minimizing liability exposures and financial losses as much as possible as quickly as possible.
Charlestowne Hotels can provide an estimate of what the lenders may expect to invest in order to protect and preserve the asset and prevent further losses. Upon authorization by the lender, they implement a robust hotel revenue management and hotel marketing program to increase revenues as much as possible. The revenue enhancement program together with improved operational controls results in reduced losses for lenders while making the asset more attractive to potential hotel acquirers.