Lender’s Key for Distressed Hotel Asset Strategies: Butler’s Matrix – By Jim Butler

The Comprehensive Situation Analysis should have gathered and considered all the relevant factors concerning the distressed hotel loan documents, the borrower, the hotel and their related considerations. Now it is time to consider these in light of the lender’s goals and the available alternatives. Given the complexities of the typical Special Asset, it is sometimes helpful to boil it down to a summary form that may over-simplify, but at least provides a grid or framework for analysis.

The Comprehensive Situation Analysis: Critical Foundation for Decisions on Lender Alternatives for Distressed Hotel Loans – By Jim Butler

When Special Assets Teams and special servicers see troubled hotel loans coming onto their screens, they should quickly perform a 'Comprehensive Situation Analysis.' The Comprehensive Situation Analysis forms the critical foundation for a lender choosing among its alternative strategies of workout, receivership, deed in lieu or bankruptcy (seeking involuntary bankruptcy and appointment of a trustee).