hospitality
RESTRUCTURING / REFINANCING

We advise hotel owners facing changed environments in which they need to adapt their financing to anticipate or manage short to medium term liquidity issues.

Key Process Steps

  • Developing detailed financial model of hotel's cash generative capacity and analysis in relation to its debt service obligations.
  • Scenario analysis and elaboration of alternative proposal(s) to ensure the viability of the firm in the short / medium term.
  • Analysis of hotel's current debt capital / creditor structure considering default risk, debt repayment triggers, covenants, waivers, etc.
  • Determining appropriate debt/capital structure for the asset based on realistic financial projections reflecting current and envisioned trading environment in the short / medium term.
  • Managing communications, presentations, negotiations with operator, creditors and financial institutions.
  • Developing and implementing complementary and/or alternative solutions; debt for equity swaps, asset sales, sale/leasebacks of real estate/premises, incorporation of new partners / fresh equity.

Matlin Associates'
Capabilities and Role

  • Leadership and execution capacity as well as total independence from financial institutions and hotel operators.
  • Extensive experience in these types of processes.
  • Access to national and international hotel operators and investors (specialized funds, family offices, real estate investors).
  • Ability to manage, communicate with and negotiate with all players: hotel operator, banks and creditors, suppliers, lawyers, guarantors and other advisors.
  • Experience of Matlin Associates partners on evaluating credit risk / lending decisions from having worked in international financial institutions.