Restructuring
Detecting weaknesses and creating solutions
Hotels are capital-intensive properties that are usually highly dependent on external financing. Due to high operational fixed costs, especially personnel expenses, the industry is prone to crisis
- triggered through an incorrect evaluation of market conditions, increased competitive pressure or insufficient marketing,
- hidden through non-existing or inefficient controlling mechanisms
- evoked and accelerated by incorrect or delayed investments not conform with market requirements.
Objective:
The first priority in restructuring the business is to rebuild liquidity and to avoid insolvency.
Services:
- After detecting internal and external inefficiencies, a turnaround concept is being developed acting as the basis for the sustainable profitability of the business
- Through our Interim Management HOTOUR guides underperforming hotel businesses from the analysis of the financial situation to the implementation phase - recommending immediate actions and medium to long-term measures to protect the business
- We develop Restructuring analysis, concepts for debt rescheduling as well as Bank financing and lead bank negotiations
- We implement restructuring plans, assist during the Investor search and manage the business through one of our interim managers until the restructuring or the sale of the hotel is completed
Interim Management
The aim of an interim manager is to guide hotels out of severe situations and to reach a successful restructuring of the business.
Services:
- Operational management with responsibility for operating results,
- Implementation of actions and measures as defined in the restructuring concept and approved by the owner
- Accountability for hotel employees
- Direct reporting to the owner
Next steps:
Refinancing, sale or lease
Restructuring analysis
Our restructuring analysis are mainly based on the IDW standards (German Institute of accountants) for restructuring concepts, adjusted to the specific needs of the hotel industry.
Our aim is to assess the current status of the business in order to develop a sustainable long-term positioning.
Services:
- Assessment of the external environment conditions of the business
- Detection of operational difficulties that led to the current economic situation
- Evaluation of future potential
- Assessment of required investments and necessary funding
Next steps:
Bank financing, coaching
Bank financing
Due to a long-standing collaboration with financing institutes, HOTOUR enjoys an excellent reputation within the branch. We know the requirements of the banks which finance hotels and we take care that the required processes are implemented quickly.
Services:
- Consulting during the research phase for a suitable financing institute
- Creation of the required surveys according to the needs of the financing bank
- Preparation of the hotel-specific relevant information for the credit request
Next step:
Hotel related advice and support during the realization phase.
Investor search
Our support in finding a suitable investor enables clients to save valuable time. Through our industry intelligence we are able to preselect and target matching investors, thereby having all relevant information at hand to begin with first negotiations.
Services:
- Development of a concept and short-list of suitable investors
- Development of a sales particular and/or a memorandum of information
- Contacting potential investors
- Preparation and monitoring of the negotiation process