Addressing the Hospitality Industry's Credit Crisis, Hotel Executives Combine to Create Collateral Strategies
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Addressing the Hospitality Industry's Credit Crisis, Hotel Executives Combine to Create Collateral Strategies
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Category: Worldwide - Industry economy
- Trends / Expert's advice
This is a press release selected by our editorial committee and published online for free on 2009-01-23
James O'Connell, Principal of O'Connell Hospitality Group, LLC and Robert J. Crawford, President of Hospitality Resolutions, Inc have announced the formation of a new venture called Collateral Strategies, Inc. Collateral Strategies ("CS") will provide lenders, loan servicers, borrowers and investors with focused strategic plans designed to assist with portfolio and single asset credit recovery. CS's Credit Strategies will identify the maximum recoverable value for both the asset and the collateral debt. CS's team will assist its clients in achieving optimal values for troubled hospitality loans and investments.
Bob Crawford and Jim O'Connell worked together at the Bank of New England in the early 90's. As leaders of the BNE Hotel Group, they provided internal strategic assistance to lenders and workout officers as they negotiated resolutions for troubled loans. Their in-depth knowledge of the work-out process allows them to assist borrowers facing critical maturity dates as well.
"There is a crisis of capital, credit and confidence impacting financial markets today, just as there was in 1990. Jim O'Connell and I are combining our knowledge of the lending and workout specialties with our combined hotel industry expertise to create strategic plans that achieve optimal values for both lenders and investors." Said Crawford, CEO of Collateral Strategies.
O'Connell Hospitality Group will continue to be a leader in hotel sales and financing transactions. However, with $700 Billion of commercial paper maturing in 2011 and 2012, the credit crisis of 2008 and beyond will have to be resolved upstream. While foreclosures will still occur, early credit resolutions typically lead to far greater recovery values. The CS Team will identify critical paths to achieving appropriate recoveries with cost-effective strategies.
O'Connell added "Hotels, after all, are capital intensive, operating businesses valued almost exclusively on cash flow -- Resolving hotel debt and recovering hotels values are, for most, challenging objectives. Bob and I have worked on over a $Billion in hotel debt and OHG has sold over $Billion in hotel assets. Our combined experiences are invaluable for lenders and borrowers in today's commercial real estate marketplace. Based upon feedback from clients across the country, we believe that this venture will provide our clients with successful results."
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