Paramount Hotel Group Named Manager of Three Florida Distressed Hotels
Expands Hotel Work-out Management, Receivership and Asset Management Activity; Brings Experience in More Than 50 Work-outs and Turn-arounds
Paramount Hotel Group, an independent hotel management and ownership group, today announced that it has been named by institutional lenders in two separate transactions to operate three hotels currently in foreclosure and has an active pipeline of additional distressed properties. The company also will act as receiver for one of the properties. The hotels, which together have more than 500 rooms, are located in Florida and include two branded and one independent property.
"Our approach is not just caretaking the property. We have take-over SWAT teams on stand-by who can take control of a property with just 24-hours notice. Our immediate goal is to stabilize the asset in terms of cash management, human resources, life safety and security. Subsequent to our assessment, we develop strategic options tailored to the Lender's objectives. The essential needs of the operation to continue as a going concern are identified and if capital is available for improvement, we recommend how best to deploy. Maximizing return on investment and generating the highest sale price on disposition is the ultimate driver in distressed hotel cases."
Kramer noted that Paramount expects that opportunities to manage distressed hotels will expand rapidly over the next 12 to 18 months. "There is an unprecedented number of troubled hotel loans that will need to be resolved over the near-term. In many cases, these properties have been neglected and suffer from deferred maintenance. We have an in-house construction team that can quickly assess these problems and determine realistic costs to remediate. If the lender so desires to expend funds for capital improvement, Paramount will provide detail budgeting for renovation and repositioning, thereby enhancing value.
"As owners ourselves, we bring a seasoned eye to the problems these hotels face. We provide honest assessments of the properties' potential based on more than 25 years of operational experience with distressed assets. Lenders want to recoup as much of their investment as possible without undertaking unnecessary risks of losing additional capital. We provide the operational and asset management expertise to help them realize their goals."
About Paramount Hotel Group | Paramount Hotel Group is a third-party independent management and ownership group that focuses on hotel operations, acquisition and development opportunities, construction management and technical services support for its customers. Additional information about the company may be found at .