Trying to restructure finance for a distressed property can feel not altogether impossible, but a really, really tough nut to crack, especially amidst ongoing market turbulence. After all, financiers are looking for concrete evidence of credibility. This can be ironic, when you’re already in the position of having to seek funding. But it doesn’t have to be so gruelling.
Key contributory factors – including Brexit’s aftermath, soaring energy prices and inflation rates, the continuing threat of recession, supply chain issues and war in Ukraine – are unlikely to disappear overnight. Despite that, whilst you can’t always choose your situation, you can choose your reaction to it.
For this reason, hoteliers with embattled properties are making the decision to work with Vine Hotels. This is because a partnership of this nature can be massively beneficial for helping you restructure finance and secure the funding that’s currently eluding you.
We have a depth of financial experience – from board level down. The leadership team brings experience of large-scale hotel financing and restructuring, cost control, revenue management and sales development. Yes, Vine Hotels has a PROVEN track record. Key contacts at senior levels in financial institutions. And business planning tools that will clearly show how investment will be converted into a secure financial future.
Here is a brief look at some of the options, and how they work.
1. Turnaround Projects to Restore Profitability
The depth of expertise in Vine Hotels’ senior team means there’s an innate understanding that different scenarios require a variety of different solutions. For example:
- Strategic Planning – Carrying out an assessment and analysis of multiple KPIs, and custom designing plans to deliver targeted results.
- Relaunch or Reposition – Collaborating with key stakeholders to re-launch or re-position embattled properties and revitalise performance levels.
- Tackling Areas of Weakness – Identifying underperforming areas, e.g. procurement or sales, and providing a temporary or ongoing modular service to remove bottlenecks to profitability.
2. Temporary Management Solutions
Once a thorough and impartial audit is carried out, Vine Hotels use the data to inform and dictate a compelling range of services for getting financially beleaguered properties back on track, such as:
- Strategy Implementation – Activating a pre-agreed strategy and continuing to implement it until profitability is restored.
- Future Planning – Ensuring the incumbent team is left with the people, processes, and know-how to continue on an upward trajectory when an interim tenure expires.
3. Leaseholder Arrangements
If handing over the keys isn’t a viable option, a ‘hands-off’ solution with the same end goals might be more palatable:
- Caretaker Teams – Deploying management teams to take over the daily running of a property and restore financial health by optimising economic potential.
The very fact that tailored options are available, with different tiers of ‘hands on’ and hands off’ criteria, offers previously out of reach opportunities if you feel like you’re navigating limited options.
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Conclusion
At Vine Hotels, we have a proud track record for working with hoteliers with distressed properties, by restructuring finance and helping them secure future funding. We achieve these goals by leveraging our knowledge, credibility and focus on the track back to profitability. This offers financiers the reassurance they need, that a revised finance package is the answer to securing the future of distressed hotel when Vine Hotels is on board. Please get in touch for a confidential chat about your situation.
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