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Debt & Finance

Loan Work out Management

Our Managing Advisor, Debt & Finance has spent the last 30 years negotiating the terms of hotel construction loans with developers. This experience has equipped Stanford G Hospitality Services with keen insider insights and a knowledge base to guide hotel owners through this challenging economic environment. 

 

Who is this service designed to aide?

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  • Hotel developers at risk of loan default within the next 3-6 months

  • Owners whose cash flows for the leveraged hotel asset have diminished and whose debt service ratio has fallen below the 1.25 debt service coverage ratio (DSCR)

  • Borrowers who need assistance with modifying existing loan terms, refinancing, consolidating existing debt, or deferring payments without added penalty

  • Borrowers looking for fiduciary guidance regarding SBA 504 loans

Given our longstanding relationships with certified development companies (CDC), we are equipped to prepare our clients with the best tools to proactively engage their respective lenders and negotiate an agreement that can save the assets from foreclosure, lengthy litigation, or exorbitant legal fees.

 

In many cases, if a hotel Owner is destined for potential default, it is advisable for the borrower to proactively engage his lender well in advance.

 

Lenders will need to know the following:

 

  • Borrower’s ability to find operational and revenue generating efficiencies

  • Borrower's personal financial situation

  • Ability to service debt

  • Business plan and updated cash flow projection 

  • Fiscally sound historical financials that tell an honest and clear story

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We are perfectly equipped to guide our clients through this process.

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