Restructuring in the hotel sector publication

What does the future hold?

Conclusion

The hotel sector faces the prospect of a long recovery but is generally resilient; the speed of recovery will be dictated by a number of factors including asset size, scale, location, reliance upon international travel and business verses social use mix. However, the sector will bounce back and remains attractive as an asset class to investors and lenders as evidenced by the substantial pool of recovery capital waiting to be deployed. The challenge for hotel owners therefore is the ability to bridge potentially substantial financing needs in the interim; failure to convey supportable business plans and retain supportive capital will result in distress and likely enforced transactions. Hotel businesses of all sizes should be actively engaging with key stakeholders regarding valuation spreads alongside operational, strategic and financial recovery strategies or, ultimately, exit options. The year ahead will undoubtably be challenging but there are debt and equity solutions available that will help fuel the recovery of resilient, well-managed businesses.

The year ahead will undoubtably be

There are a number of specific challenges when dealing with the sector, which can make them more complex to successfully restructure. challenging but there are debt and equity solutions available that will help fuel the recovery of resilient, well-managed businesses. Phil Reynolds Restructuring Advisory

Restructuring Advisory

Corporate restructuring

Phil Reynolds Restructuring Advisory

Corporate advisory

Contentious insolvency

Solvent restructuring

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frpadvisory.com

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