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Right now 4 houses beats a Hotel

Right now 4 houses beats a Hotel

Posted by: SENATE SYNDICATIONS

14 Oct 2020

I read over the weekend this somewhat sobering post on how hotels are really getting decimated and have no clear path. If you can, please check out NewGen Advisory's write up CMBS LOAN RELIEF FOR HOTELS 

It paints a clear picture just how difficult it is to stay afloat as a hotelier right now: Only about 20% in this industry have received any sort of serious aid according to Travel Pulse. And 10% of those that have received some sort of aid are now delinquent by 30 days or more!

Chip Rogers, CEO of the American Hotel and Lodging Association even takes it a step further,

"Right now, many hotels are struggling to service their debt and keep their lights on, especially those with CMBS loans," Rogers added. "Without action to shore up commercial debt, especially CMBS loans, the hotel industry will experience mass foreclosures and permanent job losses which will snowball into a larger commercial real estate crisis impacting other segments of the economy."

That right there was where it really struck me that there needs to be a more transparent assistance from the government. Currently there seems to be 3 types of relief for COVID through CMBS loans. A 3 month, a 6 month and most recent, a total rehaul to the original agreement. Yeah, good luck with that.

It’s a bit strange that the airline industry has received the lions share via Cares Act and these franchise owners have little guidance. Remember a lot of the hotels you drive passed are NOT the actual “company” but small business owners that have the rights to this franchise. These are the people that hire locals to keep the place running and without some assistance these hotels will be closed permanently and thousands out of work. I shudder the thought of how many families this will directly impact.

Currently, Senate Syndications has teamed up and are trying to offer some aid to these small business owners. We are focusing on hotels that are suffering for no fault of their own except being in business during this pandemic.

We are in talks with a handful, but we know we can help more. Through open conversations we are giving options to owners who saw nothing but closed doors. I know we cannot save them all, but I truly believe there are a lot worth saving.

If you are or know someone who is a hotel owner, and feel that door after door are being shut in your face please reach out for a candid conversation. Don't let COVID kill a perfectly good business.

**Photo by Suzy Hazelwood from Pexels 

 

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