This past year has brought unprecedented struggle to the hospitality industry. While 2021 is projected to bring vaccines and renewed occupancy, things likely won’t return to pre-COVID levels for some time and many are worried about it will be time to complete their PIPs again.
With revenue reduced for many properties, there doesn’t seem to be any extra cash to put toward renovations, but there are still options available to hoteliers. While we recommend talking to your financial partners, we have consolidated the resources out there that may help give you information on where to look to secure financing, cut costs where necessary, acquire loans, and prepare for your next renovation, whenever that may be.
This article provides expert advice condensed into 10 steps: understanding your obligations, monitoring your cash, refining your cost cutting, marketing costs, promoting COVID-19 practices, restructuring debt, filing business interruption claims, finding new capital, re-thinking your PIP, and exploring repurposing options.
It’s important to stay up-to-date on government relief programs for the industry. This page by AAHOA shows the latest SBA updates and outlines the terms of the second round of the Payment Protection Plan in the USA. This HAC page contains the latest information from the Canadian Government on aid and loan qualifications for hoteliers. Here you can learn if your hotel is eligible for relief.
This article covers the major concerns of borrowers in the post-COVID lending market. In the form of an FAQ, they answer everything from brand agreements to government aid, loan deferrals, and new sources of income.
This article provides valuable and creative options for managing your finances including: how to ask your lender to modify terms and defer payments, applying for a SBA Economic Injury Disaster Loan, refinancing and consolidating your debt, seeking loans, filing for Chapter 11 Reorganization, and other ideas.
Many brands have decided to defer fees, renovation cycles, new initiatives, and other costs. Some have even found creative ways to convert FF&E or PIP reserve funds or management fee accruals to working capital. Be sure to know what your options are.
The American Hotel & Lodging Association (AHLA) has negotiated a partnership with local, state, and federal governments that allows hotels to house emergency workers, homeless people, and/or frontline workers in exchange for government assistance. The initiative is called ‘Hospitality for Hope’, and it includes a database that government officials can use to find participating properties when needed. Registering your property with this database can bring in much-needed revenue.
This article explains how loan restructuring and forbearance agreements work for hospitality properties. It covers the basic procedure that most borrowers follow in times of crisis like we’ve seen in the past 12 months.
There are a number of organizations that exist to help businesses get loans when they need them. All of these organizations offer online applications.
We hope that this article helped you to find the resources and financial support you need to complete your next renovation project. When it’s time to renovate again, HotelFurniture.com offers a fully online service that allows you to design your rooms using brand-approved items and vendors. After viewing a 3D rendering of your design and approving a quote, we’ll take care of the rest. By using pre-approved items and designs from the start, we’ve cut project times in half.