Source: Hotel News Now
March 23, 2020
By Danielle Hess
REPORT FROM THE U.S.—The hotel industry has hit a rough patch with the current COVID-19 outbreak, which is why it’s important for owners to inform their lenders about their property’s situation.
On a recent webinar hosted by the Asian American Hotel Owners Association, Peter Berk, president of PMZ Realty Capital’s hotel finance group, said owners need to communicate as much as possible with their lenders through their attorney, usually in the form of a letter.
Here are the six things the letter should address.
- Share the property’s location and unique ID number.
- Explain the owner’s history of good payment.
- Tell them about the hotel’s GSS and quality scores.
- List out the demand drivers in the hotel’s market.
- Explain the ranking in STR’s STAR report. (STR is the parent company of Hotel News Now.)
- Tell the lender what’s happening at the hotel.