Hotel Receivership Defined
A hotel receivership is a court receivership where a hotel is the primary asset in dispute. Similar to other court receiverships, a judge appoints a receiver to manage the asset while a resolution is sought via the court system. Receivership Specialists has the experience and expertise to act as court receiver over a hotel receivership.
There are several possible reasons a judge appoints a court receiver over a hotel, vacation housing, or rental property. The most common is that an investor/owner in the property is concerned with the management and/or finances of the hotel in question. Where the investor is concerned with mismanagement and/or a lack of transparency as to how the finances are being handled by another owner of the property, the concerned investor/owner may hire an attorney to pursue legal action address their issues of concern and get a receiver appointed to operate, protect, and preserve the hotel.
Another reason for the appointment of a receiver over a hotel is default by a hotel owner on a loan encumbering the hotel. In this instance, if mortgage payments are not being made, the lender/lien holder may bring a foreclosure action on the hotel and get a receiver appointed over the property to help ensure the value of the hotel doesn’t diminish during the foreclosure process and the lien holder has the best chance of continuing to receive loan payments or possibly have the loan brought current.
Qualifications of a Hotel Receiver
Regardless of the initial reason, once the hotel is put into a receivership, it is the duty of the receiver to oversee the management and operations of the hotel until the dispute is resolved. It is the judge’s responsibility to make sure the hotel receiver is qualified to manage the hotel so the business will continue to run as smoothly as possible.
It’s not just about improving hotel occupancy and maintaining appearances; it’s about maintaining and improving the profitability of the hotel. Running a profitable hotel has unique intricacies that differentiate it from running a retail business or other type real estate asset classes.
As an agent of the court, a hotel receiver must carry out the duties assigned to them by the court. A court-appointed receiver’s responsibilities include, but are not limited to, protecting the hotel and ensure that it continues to run efficiently and profitably as possible.
How to Request a Hotel Court Receiver
Before you make a request to a judge regarding the appointment of a court receiver, it’s prudent to have an experienced receiver in mind that you identify in your motion to the Court for the appointment of a receiver. This will make the appointment process easier for the Judge.
Contact Receivership Specialists: An Experience Hotel Receiver
Once you and your attorney determine that the best course of action includes the appointment of a hotel receiver to your case, it’s time to contact Kevin Singer of Receivership Specialists. Use this contact form to inquire about your hotel receivership or call Mr. Singer directly at 877.755.9064