At Horizon Hotels Limited, we believe the idea behind hotel asset management is to provide a responsive ownership representative who will bridge the gap that exists between two very different industries: hospitality and financial institutional investment.
Horizon has a strategic understanding of the critical factors affecting the relationship between lender and owner, institutional owner and partner, and owner and management. When investment returns falter, the fundamentals of the asset’s operations come into question, and the institution does not always have the breadth and depth of experience available to develop a comprehensive diagnosis of the problem or a reliable approach for resolution. This is where Horizon Hotels Limited can be of invaluable assistance for hotel asset management and distressed properties.
As asset manager, we will evaluate your assets, loans and owned properties, whether classified as troubled or performing assets. We will analyze properties for which you are the lender, to identify any problems that are not yet apparent, but could affect the accrual status of the loan. For loans in default, we will develop an operating strategy, which will dovetail with your workout strategy. For hotels in which you are the owner or have partial ownership interest, we will perform more aggressively on your behalf to ensure that the interests of the management company are congruent with your own. Moreover, we provide on-site management companies that are less experienced in operating distressed hotels with alternative operating strategies.
Horizon Hotels also develops a comprehensive portfolio investment strategy for hotel assets. Given the unique nature of hotels as real estate assets, the issues of exposure, risk and balance are critical to planning a viable investment portfolio. If the institution’s exposure parameters indicate that the hotel portfolio should be downsized as a percentage of the total real estate investment portfolio, Horizon will help identify assets without a long-term appreciation value that are candidates for disposition. We will also assist in identifying new assets for investment and portfolio expansion. Through comprehensive analysis of each property, Horizon provides valuable assistance in identifying the risk factors for each asset, as well as when each hotel has peaked or will peak in value. Horizon’s knowledge of local market trends is also helpful in mitigating the impact of normal market variations on a hotel’s overall portfolio.
Horizon is experienced in providing appointed receiver services on the lender’s behalf in cases of bankruptcies and managing properties involved in foreclosure, deed-in-lieu or negotiated handovers. Horizon has established reporting guidelines and systems for operating a property that are part of a securitized loan in order to maintain the favorable tax qualifications as a REMIC for special servicers administering default loans.