Underperforming hotel in Florence, Arizona that went into bankruptcy during the receivership
Resolute was initially appointed as Receiver for an underperforming Hotel in Florence, Arizona. Upon our appointment, our Team immediately started to implement processes and systems to improve operations, marketing and financial performance.
Shortly into our engagement, Borrower filed for bankruptcy and Resolute was retained to monitor operations, cash collateral, and perform feasibility analysis of the Borrower’s restructuring plan.
Based upon Resolute’s testimony at the Plan Confirmation Hearing, the plan was denied and a relief from stay was granted. Resolute regained control of the property under the Receivership Estate as well as post foreclosure. During the time of our direct control, all financial performance categories of the property increased dramatically. Occupancy went from 30% to 70%, ADR improved by nearly $20, and overall revenue increased nearly 30% year over year.
Issues identified and solved at the property were:
- Flag standards and compliance
- Certificate of Occupancy
- Deferred Maintenance
- Health Department standards (i.e. pool, ice machines, etc.)
- Marketing perception within the marketplace
- Revenue management
- Expense management