Detecting weaknesses and creating solutions
Hotels are capital-intensive properties that are usually highly dependent on external financing. Due to high operational fixed costs, especially personnel expenses, the industry is prone to crisis:
- triggered through an incorrect evaluation of market conditions, increased competitive pressures or insufficient marketing activities,
- hidden through non-existing or inefficient controlling mechanisms,
- evoked and accelerated by incorrect or delayed investments not conform with market requirements.
The first priority in restructuring the business is to rebuild liquidity and to avoid insolvency.
- After detecting internal and external inefficiencies, a turnaround concept is being developed, acting as the basis for the sustainable profitability of the business.
- Through our Interim-Management services, HOTOUR guides underperforming hotel businesses from the analysis of the financial situation to the implementation phase, thereby recommending immediate actions and medium to long-term measures to protect the business.
- We develop Restructuring Analysis, concepts for debt rescheduling as well as Bank Financing and lead bank negotiations in our clients’ interest.
- We implement restructuring plans, assist during the Investor Search and manage the business through one of our interim managers until the restructuring or the sale of the hotel is completed.
The aim of an interim manager is to guide hotels out of severe situations and to reach a successful restructuring of the business.
- Operational management with responsibility for operating results
- Implementation of actions and measures as defined in the restructuring concept and approved by the owner
- Accountability for hotel employees
- Direct reporting to the owner
Refinancing, sale or lease
Our restructuring analysis are mainly based on the IDW standards (German Institute of accountants) for restructuring concepts, adjusted to the specific needs of the hotel industry. Our aim is to assess the current status of the business in order to develop a sustainable long-term positioning.
- Assessment of the external environment conditions of the business
- Detection of operational difficulties that led to the current economic situation
- Evaluation of future potential
- Assessment of required investments and necessary funding
Bank financing, coaching
Due to a long-standing collaboration with financial institutes, HOTOUR enjoys an excellent reputation within the industry. We know the requirements of banks that finance hotels and ensure a quick implementation of the required process.
- Client consultation in finding a suitable financial institute
- Creation of appraisal reports according to the specifications of the financing bank
- Preparation of the hotel-specific information relevant for the loan application
Hotel-specific planning and construction advice during the realisation phase
Our support in finding a suitable investor enables clients to save valuable time. Through our industry intelligence we are able to preselect and target matching investors, thereby having all relevant information at hand to begin with first negotiations.
- Development of a concept and short-list of suitable investors
- Development of a sales particular and fact sheet
- Contacting potential investors
- Preparation and monitoring of the negotiation process