log in
All Articles | Back

Member Articles


ALERT: Hotel Owners - Weathering Difficult Times 

by Ann M Saegert

Published: February, 2002

Submission: November, 2003

 



According to the fourth quarter 2001 report of Lodging Econometrics, the accelerated decline in the operating performance of the lodging industry will continue until the middle of the first quarter of 2002 due to the events of September 11, 2001, and the recession. Further, while the operating performance of the lodging industry may show signs of improvement by September of 2002, the effects of that improvement may not be felt until the first quarter of 2003. Many hotels will continue to undergo hardship and may consider filing for bankruptcy to get some relief from their creditors. If a hotel files for bankruptcy, decisions relating to the hotel may be subject to scrutiny and approval of the bankruptcy court. Further, an owner will need to enter into protracted discussions with creditors to formulate an acceptable reorganization plan. As an owner, you may be able to avoid such a predicament by taking proactive steps. To do so, an owner must be realistic about the likelihood of a hotel’s success. Set forth below are some of the steps an owner can take to make an assessment of such likelihood and to formulate a realistic approach.

 



Link to article

 

MEMBER COMMENTS

 

 

WSG Member: Please login to add your comment.

    Disclaimer

WSG's members are independent firms and are not affiliated in the joint practice of professional services. Each member exercises its own individual judgments on all client matters.

HOME | SITE MAP | GLANCE | PRIVACY POLICY | DISCLAIMER |  © World Services Group, 2020