Our tourism and hospitality industry experience includes work with accommodation and leisure related property, hotels and motels, resorts and tour operators, catering companies, restaurants and bars, as well as their advisors and other stakeholders.
We are familiar with the sector’s specific challenges, such as the impacts from world economic events, currency fluctuations, high tax rates, fuel cost volatility, security, and safety issues.
A 150-room hotel, residential estate development and significant resort and leisure facilities had been under varying forms of formal administration for over five years. The hotel and some leisure facilities had been under management by a major international operator. The property had failed to sell and was subject only to offers on a ‘distressed sale’ basis. Brian Silvia was appointed to improve returns from a sale of the property. As a precursor, this involved placing the strata title operations on a sound footing, a trading review, a critique of sales and operations, recommendations for improvement of sales and operations, and monitoring the implementation of such improvements. After 18 months, the trading improvements resulted in the property becoming increasingly attractive to mainstream investors. A contract for sale was settled (representing a 40% increase in realisation from the previous distressed sale offers).
Brian Silvia was appointed to review the trading, cash flow and value potential of an apartment hotel trading with management rights tenure and short-term guaranteed return obligations to owners. The review identified trading opportunities and risks, short-term and long-term structural issues, the commitments of the manager, and valuation realities. The secured financier was able to structure its commitment to continued support in light of the review findings.