Remington Capital – Joel A. Nathanson

Here at Remington, many of the brokers I’m dealing with on a daily basis are working with owners in hospitality . I’m not surprised that the hotel sector leads the CMDS delinquency trends in October.

There are a number of issues impacting hospitality that are related to disposable income chalenges for both business owners and consumers. The decline in travelers has forced an increase in competition between hotel owners to stay competitive on daily rates. That along with the higher daily vacancy rates have driven down hotel revenue significantly.

It is taking more creativity to finance and recapitalize hospitality-related commercial property investments. At Remington our access to actively-lending capital sources becomes a light at the end of the tunnel for many owners (and brokers) who are looking to start or restructure a transaction. 

An example is a recreational vehicle park in the midwest that required property upgrades in order to reverse declining sales. Despite adequate cash flow and a solid financial history, lenders refused to refinance the maturing loan because declining property values caused a loss of equity. Acting as financial adviser, Remington creatively restructured the distressed owner’s business plan in such a way that it could successfully tap into its extensive network of private lenders and investors. Instead of having to sell or declare bankruptcy, the distressed owner secured through Remington a competitively priced $1.58 million SBA 7(a) loan.

Read more about the hospitality sector data here: http://www.mortgagebankers.org/tools/FullStory.aspx?ArticleId=9005#full

Thank you. Joel.

Joel Nathanson – Remington